Gold Finder Resources Ltd.

Q1 2021 revenue was a record $5.5 million, up 18% year over year. Gross profit margin was 45% versus 37% in Q1 2020, operating cost decreased 21%, and adjusted EBITDA was $370,000, or 7%. Retail revenue grew 20% year over year and wholesale revenue grew 26% year over year. Management said 12% of category sales came from internally cultivated flower, compared with zero in Q1 2020. For balance sheet context, management said post-consolidation there would be just under 63 million shares outstanding, with 5.3 million options and $11.1 million of total debt outstanding. Looking ahead, management said Bald Peak output was now at 250 pounds per month beginning in Q2 and that it can support 18 to 20 stores; they also said Homegrown nearly doubles store footprint and revenue, and that acquisitions will be pursued only if they are accretive within a 0.75 to 1.25 multiple range.

Jeff Yapp’s message was centered on transformation, culture, and strategic expansion. He highlighted that Chalice is now vertically integrated, cash flow positive, and EBITDA positive, and said the company is focused on Oregon while also looking west of the Mississippi and adding California to the portfolio. He framed Homegrown as a culturally strong, profitable fit that should strengthen market leverage and margins, and described Fifth & Root as a platform for future legalization and a nationwide commerce relationship with new consumers.

John Varghese emphasized the financial turnaround: record revenue of $5.5 million, gross margin improvement to 45% from 37%, adjusted EBITDA of $370,000, and a 21% reduction in operating cost. He said the balance sheet had been cleaned up and debt was now manageable, with $11.1 million of total debt outstanding and more than half of that in shares. He also said the share consolidation was intended to support future institutional interest and a more workable capital structure as the company pursues accretive acquisitions.

Analysts asked about the name change, the 23:1 share consolidation, the rationale for Homegrown and Fifth & Root, and whether acquisitions would continue. Management said the name change better aligned the corporate brand with the Chalice Farms retail brand, and the consolidation was meant to avoid an extremely high share count, improve marketability, and better position the company for future capital raises and institutional interest. On Homegrown, management said it nearly doubles store footprint and revenue, was a strong cultural fit, and should improve margins because more flower can be sold in owned stores; on Fifth & Root, they said it supports a broader commerce platform and future legalization themes. They also said future acquisitions would be pursued selectively, likely starting with three- to five-store opportunities in Oregon, with discipline around accretive pricing.