Projects On Track — New Jersey Phase 2
Harvest of first Phase 2 flower room (Flower Room 5) expected later this month; remaining flower rooms at the New Jersey facility targeted to be fully completed by end of 2026; small power upgrade in progress to support three remaining rooms.
Illinois (Dwight) Activation Progress
Acquired a fully operational built-out facility in Dwight, Illinois; modest infrastructure improvements underway and management anticipates occupancy approvals and ability to move plants into the building this quarter.
Minnesota Construction and Market Entry
Active construction in Minnesota with occupancy and plants targeted in late Q3; facility footprint cited at ~109,000–110,000 sq ft with ~30,000 sq ft canopy potential, positioning the company as an early quality producer in a product-constrained market.
Yield and Efficiency Improvements
Technology and small capital improvements are driving material yield gains: averaged ~82 grams per square foot over recent quarters, representing a ~20%–30%+ improvement versus historical yields; company expects similar 20%–30% yield uplift from recent low‑cost technology rollouts.
Low-Cost, High-ROI Capital Investment
CapEx for the yield-driving technology is modest (low $100,000 per facility; ~USD 60k already spent to outfit ~half of Oregon) with management estimating ROI in a couple of harvest cycles and scalable rollout across the portfolio.
Product and Brand Momentum (Vapes & Retail)
Launched strain-specific vape carts in Oregon with an initial light run (~20,000 cartridges), strong consumer feedback and plans to double the next order; brand engagement highlighted by a 500+ person New Jersey brand event and market awards (1st place indica, 2nd place non-infused pre-roll).
Financial Reporting and KPI Normalization
Completed GAAP conversion work including refiling 2025 quarters on SEDAR (April 30); trailing 4 quarters of adjusted EBITDA to be restated and a cost-per-pound KPI recast to remove S&A and packaging for better cross-market comparability.
Raised Revenue Guidance and EBITDA Outlook
Modestly increased full-year revenue guidance (no numeric provided) tied to better-than-expected Michigan performance; management stated confidence in being at the higher end of adjusted EBITDA guidance.