Debra BorchardtHerbal Dispatch Inc. (CSE: HERB) gave investors a year-end sales update and also announced that it intended to consolidate its common shares to improve its capital structure.
Herbal Dispatch said it expects to report gross sales of approximately $2.5 million for the fourth quarter ending December 31, 2023, reflecting a 67% increase from gross sales of $1.5 million reported in the third quarter. For the full 2023 fiscal year, Herbal Dispatch said it expects to report gross revenue of approximately $5.7 million, an increase of $5.3 million from gross revenue of $0.4 million reported in fiscal 2022. With the revenue growth achieved, Herbal Dispatch said it also expects to report positive adjusted EBITDA for the fourth quarter.
CEO Philip Campbell commented, “We are pleased to report a very strong Q4 sales result on the back of growth in our three key sales pillars of medical, wholesale and export. From a standing start in January 2023, we are now seeing the benefits of our asset-light, customer-focused strategy and we are optimistic for continued growth in 2024. Our share consolidation will also allow us to rebuild our investor base.”
The company noted that its increase in revenue was experienced both domestically and from growing demand for its products internationally. The company said it has worked hard at developing export relationships and this is starting to bear fruit with repeat orders completed to Australia, initial orders completed to Portugal, and additional countries in progress. The company said it expects that these relationships will continue to grow in 2024.
Share consolidation
Herbal Dispatch said that its new common shares are expected to begin trading under the new CUSIP number 42704B205 on February 22, 2024, having a Record Date of February 23, 2024. It is not changing its name and expects the reduce the number of outstanding shares to approximately 73,627,909. It also said it would not be issuing any fractional shares and if that happened the shares would be rounded up.
