Q2 Revenues Up; Company Name Change to Mellow Enterprise
Denver, Colorado--(Newsfile Corp. - August 16, 2022) - CBD of Denver (OTC Pink: CBDD) reports Q2 revenue of US$1.3m and net income loss of $366,000. The revenue represents a 40% increase over the first quarter, as customer activity picked up from Q1 and prices began to stabilize.
"We continue to look at ways to diversify the business away from a low margin, commodity business into a more sustainable high growth business model. The cannabis sector is still in its infancy in Europe, and there are better ways to be positioned," said CEO Paul Gurney.
Cost-cutting across the enterprise should begin to positively impact cash flows by end of Q3, with a positive cash flow rate forecast for Q4.
The integration of the Mellow acquisition is starting to gather momentum with five new customer contracts signed in July, and more discussions to bring U.S. brands into the Swiss and European markets. A complete rebrand in Switzerland to Mellow will occur from Sept 1, including the launch of a Mellow e-commerce store, and potentially an expanded retail presence.
CBD of Denver would also like to announce it has a selected a new name for the company. CBD of Denver will be moving to the name Mellow Enterprise over the coming months. The move to a new name represents a repositioning of the company into the much broader alternative health and wellness category.
"The feedback from shareholders and clients has been universal towards our current company name. It is confusing and doesn't represent our business or where the company is heading. This name change allows us to move forward and rebrand the company to better reflect our current business and future opportunities," said CEO Paul Gurney.
"In Switzerland, the sector continues to mature and gain acceptance. From August 1, the government changed the rules around medical cannabis, which reduces the barriers to getting access to the medicine. The pilot programs for adult-use cannabis are also beginning, and our company is looking at the best ways to participate."
The company will host a live call via their twitter at 10am EST on August 16th, 2022 to update investors on Q2. The call can be accessed here: https://twitter.com/i/spaces/1lPJqmMpqaPJb
About CBD of Denver, Inc.
CBD of Denver, Inc. owns 100% of Rockflowr, a full-line Distributor of CBD and Cannabis flower and a producer of a full line of CBD oil and unique products sold in Switzerland and throughout Europe. As a Cannabis Roll-Up company CBD of Denver, Inc. is focused on using equity to acquire profitable assets at attractive valuations to create value for all our shareholders and is driven by a passion to improve lives and strengthen communities by unleashing the full potential of cannabis. Through the Rockflowr brand CBDD has been able to build a very strong European customer base by focusing on top quality products and meaningful customer relationships.
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Mellow group operates as a multi-brand eCommerce Marketplace, a full-service digital & performance marketing agency, as well as a market expansion service into the Asian markets. Recently acquired by CBD of Denver, Mellow is playing a key role in expanding the CBDD business revenue streams, as well as diversifying the brand portfolio, as part of a commercial roll-up strategy. With offices in the UK and Switzerland CBDD is able to offer and end-to-end service proposition for brands wanting to enter and/or operate across the UK / EU markets, including manufacturing, production, supply-chain, distribution, eCommerce and Marketing.
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