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GABY Inc. (GABY or the Company) is a company that has decided to wind down its operations due to financial constraints. The write-down of its Type 10 retail license in California has made the continued operation of the retail business untenable. The company defaulted on its obligations under a Promissory Note and has executed a Consent to Strict Foreclosure and Release Agreement. Effective July 15, 2023, Ebon Johnson will resign from the board of directors. GABY's common shares trade on the CSE and OTC markets.
The Company will explore the feasibility of continuing to operate its CBD business under the Lulu's and 2Rise brands.
GABY Inc. (CSE:GABY)(OTC:GABLF), a cannabis dispensary consolidator based in California, has announced a settlement agreement with Miramar Professional Services to restructure its debt. The agreement includes an amended and restated promissory note that reduces the outstanding principal by US$3 million and lowers the interest rate for the next two years, resulting in interest savings of US$2.3 million. The repayment schedule has been extended, with final payment due on April 30, 2029. GABY will also issue 1.5 million warrants to the vendors, exercisable over three years at various prices. This restructuring supports GABY's operational and financial stability as it continues to grow both organically and through acquisitions.
GABY Inc. (CSE:GABY, OTCQB:GABLF) reported Q3 2022 revenue of $5.4 million, a 4% increase from Q2 2022, but a 20% decline year-over-year. Gross margin rose to 46%, reflecting improved operational efficiencies despite challenges in California's cannabis market. The company recorded a net loss of $3.8 million, influenced by a $1.9 million non-cash foreign exchange loss. Deliveries increased, serving 9,360 customers. Management is focused on expanding proprietary brands, which yield higher margins.
GABY Inc. (OTCQB:GABLF) reported $5.2 million in revenue for Q2 2022, down 26% year-over-year, primarily due to the discontinuation of its wholesale business. Despite this, gross margins improved to 43% from 35% in Q2 2021. The company achieved a 11% reduction in SG&A expenses and noted that its branded products now account for 15% of sales in its retail outlet. A net loss of $3.0 million included a significant foreign exchange loss. Management remains focused on cost management and expects improved revenues for the latter half of 2022 as market conditions stabilize.
GABY Inc. (CSE:GABY) (OTCQB:GABLF) announced the appointment of Glenn Solomon QC to its Board of Directors on July 14, 2022. He replaces Loreto Grimaldi, who stepped down on July 13, 2022. Solomon, an established lawyer and businessperson with significant accolades, is expected to enhance GABY's governance. With experience in corporate and commercial litigation, he aims to add value to the company. GABY operates the Mankind Dispensary and focuses on cannabis retail consolidation in California.
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