Aegis Brands Inc. reported financial results for the first quarter ended March 27, 2021.
- The sale of Second Cup was consummated on April 23, 2021.
- Consolidated Net Loss including Second Cup for Q1 was $1,801,000 or $0.08 per share compared with $2,897,000 or $0.13 per share one year ago.
- Bridgehead’s Q1 Net Income was $17,000 compared to a Net Loss of $560,000 last year.
- Hemisphere revenue rose by 38% in Q1 vs the previous quarter.
- Hemisphere’s Net Loss was $356,000 in Q1 compared to $1,120,000 in Q4 of 2020.
Aegis Brands Inc.
The sale of Second Cup Coffee Co. to Foodtastic was completed on April 23, 2021. The proceeds from the transaction were $14 million (subject to certain closing adjustments) of which $12 million was received at closing. As a result, the Company significantly strengthened its financial ability to carry out its strategic objectives in consolidation while growing the Bridgehead and Hemisphere Cannabis brands.
“With the sale complete, we are now able to focus on the future of Aegis Brands,” said Steven Pelton, President and CEO of Aegis Brands. “We look forward to seeking out new strategic growth and development opportunities with entrepreneurs who are poised to take advantage of this pivotal time for the company.”
Moving forward with a clean balance sheet, Aegis continues to seek out acquisition. In the wake of the disruption and innovation as a result of the pandemic, the Company sees a broad array of opportunities.
Hemisphere Cannabis Co.
Hemisphere’s revenue increased by 38% from Q4 of 2020 to Q1 this year. Currently operating four stores in Ontario, Hemisphere will have ten locations open by the end of 2021 including one in Alberta.
“We began opening Hemisphere locations in some of the hardest hit parts of Ontario during the pandemic in July 2020,” said Jenn Juby, Vice President of Retail for Hemisphere. “Having said that, we have received very strong responses to our brand and marketing efforts in Q1 and the start of Q2, including our 4/20 (cannabis holiday) promotion. We have plans to further leverage partnerships and create additional value-added offers throughout the year. We also expect a significant lift in sales when restrictions are lifted.”
About Aegis Brands Inc.
Aegis Brands Inc. owns and operates a Bridgehead Coffee and Hemisphere Cannabis Co. The Company’s vision is to build a portfolio of amazing brands that can grow and flourish with access to our resources and expertise. The Company is committed to letting each brand operate independently while providing shared expertise to help them thrive. For more information, please visit www.aegisbrands.ca.