Greenrose Acquisition Corp.

Revenue in Q2 2022 increased 40% year over year to $9.2 million from $6.6 million. Gross profit was $2.9 million, with gross margin of 31.5% versus 67.6% in Q2 2021. Net loss was $10.3 million compared with net income of $3.3 million a year ago. Adjusted EBITDA was $3.1 million versus $4.6 million in the prior-year quarter. Capital expenditures were $0.9 million, and cash plus restricted cash was $2.7 million at June 30, 2022, down from $9.1 million at December 31, 2021. The company suspended its prior full-year 2022 outlook, which had called for revenue of $100 million to $120 million, net income ranging from a $5 million loss to a $1 million profit, and adjusted EBITDA of $65 million to $75 million, pending greater visibility on Connecticut adult-use timing.

Mickey Harley said the company is focused on strengthening its foundation in Connecticut and Arizona by ramping cultivation, improving operational efficiency, and building inventory ahead of the expected Connecticut adult-use launch. He emphasized that True Harvest’s facility is now fully activated and that Theraplant continues to generate strong free cash flow while preparing for recreational demand. His tone was constructive but cautious, especially around Arizona wholesale pricing pressure and Connecticut’s uncertain rollout timing.

Bernard Wang summarized the quarter’s financials and highlighted that revenue rose to $9.2 million, gross profit was $2.9 million, and adjusted EBITDA was $3.1 million. He pointed to a $6.3 million cost of goods sold line, including inventory fair-value step-up effects and startup/ramp costs, as well as $3.3 million of G&A tied to True Harvest and public company costs. He also noted cash and restricted cash of $2.7 million, capital spending of $0.9 million, and that the company is now holding its full-year outlook until it has clearer visibility on Connecticut.

In the only analyst question captured, Peter Guerrero asked about when Connecticut recreational sales might open and whether the company would be able to reach dispensaries and handle state conversion fees. Mickey Harley answered that the prior October 1 assumption now looks delayed, but the company still expects the market to open sometime this year and believes it can sell into the full retail base as licenses are built out. He also said Greenrose expects to pay the conversion fee soon and thinks it will be the dominant supplier in the early months of the market.