Grown Rogue Provides Michigan Update

Rhea-AI Summary

Grown Rogue International (CSE: GRIN, OTC: GRUSF) reported record revenues exceeding US$0.7M for June from its Michigan operations via Golden Harvests, achieving over 60% gross margin. The facility can yield over 5,000 pounds of premium indoor flower, with plans to expand operational capacity by an additional 25,000 sq ft to boost annual yields to over 8,000 lbs. Grown Rogue's products currently reach about 10% of Michigan dispensaries, and the company is actively enhancing its sales team to gain market share.

Positive

• Record revenues of over US$0.7 million for June in Michigan operations.
• Achieved more than 60% gross margin.
• Expansion plans with an additional 25,000 sq ft operational space to increase yields to over 8,000 pounds annually.
• Strong pricing power for nitrogen sealed jars, accounting for 30-40% of sales at ~25% higher than the state average.

Negative

• None.

Grown Rogue International Inc. (“Grown Rogue” or the “Company”) (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, today announced record revenues for its Michigan operations, through its partner Golden Harvests, LLC (“Golden Harvests”), of over US$0.7M and greater than 60% gross margin for the month of June.

Golden Harvests’ 80,000 sq ft facility has 35,000 sq ft operational that can yield upwards of 5,000 pounds of high quality indoor “A” flower. Golden Harvests is currently operating eight individual flower rooms with weekly harvests. An additional 25,000 sq ft is expected to be operational by June of 2022 increasing annual yields to over 8,000lbs. Grown Rogue’s products are currently only available in approximately 10% of dispensaries in Michigan and the Company is actively expanding the sales team as production capacity increases to establish more market share.

“This record month shows the progress our company and team have made as we continue to scale our low cost, high quality flower business,” said Obie Strickler, CEO of Grown Rogue. “We are excited to continue setting record months as we add additional cultivation rooms and expand our distribution network.”

The quality of Grown Rogue’s flower produced in Michigan through Golden Harvests continues to be recognized around the state driving premium pricing. According to MarketScape, pre-packaged flower has ~20% share of the flower market and sells for significantly higher than bulk flower. Grown Rogue’s nitrogen sealed jars consistently account for 30-40% of monthly company sales and at a price ~25% higher than the state pre-packaged average sales price. Other brands across the state continue to seek Grown Rogue’s flower to use as their own branded flower and pre-rolls.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically-integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown and indoor premium flower, along with nitro sealed indoor and sungrown pre-rolls and jars.

FORWARD-LOOKING STATEMENTS

This press release contains statements which constitute “forward‐looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company’s management’s expectations, estimates or projections concerning the business of the Company’s future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company’s public disclosure documents filed on www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.

SAFE HARBOR STATEMENT

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company’s Form 20-F and 6-K filings with the Securities and Exchange Commission.

DISCLAIMER

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company's business are disclosed in the Company’s Listing Statement filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on Grown Rogue International please visit www.grownrogue.com.

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FAQ

What were Grown Rogue's revenues for June 2023?

Grown Rogue reported record revenues exceeding US$0.7 million for June 2023.

What is Grown Rogue's gross margin for June 2023?

Grown Rogue achieved a gross margin of over 60% for June 2023.

How much flower can Golden Harvests produce?

Golden Harvests can produce upwards of 5,000 pounds of high-quality indoor flower.

What is Grown Rogue's market presence in Michigan?

Grown Rogue's products are currently available in about 10% of dispensaries in Michigan.

What are Grown Rogue's plans for expansion?

The company plans to expand its operational space by an additional 25,000 sq ft to boost annual yields.