Cannabis multi-state operator Body and Mind Inc (CSE: BAMM) made some waves when their Q2 2021 financials (ending Jan 31, 2021) were recently released. Quarterly revenues jumping as much as 19% sequentially and a second consecutive quarter with positive-adjusted EBITDA is enough to make cannabis investors sit up and take notice of what’s happening. We were pleased to invite CEO Michael Mills back to The Dales Report for an interview to see what other exciting cannabis news Body and Mind has to report.
Here’s some highlights from the interview:
Body and Mind Focused on Measured Growth
When asked about why organic growth was strong, Mills indicated that growing in a measured way was Body and Mind’s focus. As an example, he pointed out some of the changes that have recently been taking place over at their Nevada cultivation facility. Mills said that after a look at the entire layout of the facility, they were able to make some renovations that would allow 20% more canopy. The additional revenue from the new flowering should be coming in this month.
There’s more growth potential for the company as they activate some of their licenses over the next four to six weeks. Mills says that Body and Mind expects to have their Arkansas cultivation permitted and ready to go, and they’re working on Ohio production in the not-too-distant future. The big benefit, of course, would be bringing the Body and Mind brand into these new states as well as supplying their dispensaries.
Larger growth opportunities, Mills says, would come from acquisitions, and he feels positive that Body and Mind’s good reputation as “strong operators and good folks to work with” brings attention and interest from a lot of different potential partners. Acquisitions, he acknowledges, are a great way to move revenue higher fairly quickly.
Nevada Cannabis Demand High, Mills Says
COVID has had an impact on many states’ cannabis tourism sales numbers, but Body and Mind has a strong local following in Nevada, at least. Where Nevada’s tourism was down about 60% last summer, Mills says that cannabis sales were up roughly 30%. He takes this as an indication that the brand has been adopted and enjoyed by mainly locals, since there hasn’t been a dramatic slowdown in sales in any way.
And demand is so high that he feels there’s plenty of growth potential. In fact, Mills says, “I think we could increase our capacity for cultivation by 100% and still sell everything. Everything we grow is sold before it gets cut down.”
NMG Ohio Production to Have Sustainable Sales Output Quickly
The NMG Ohio production facility will be located next to Body and Mind’s dispensary right outside of Cleveland. Mills says that they’re in the process of putting the final equipment in, and they expect that the brand recognition on extracted products in Las Vegas, plus the expertise of the extraction team, will help get Ohio running quickly.