Dear Fellow Shareholders,
As we close out our third quarter of the year and the third quarter under my tenure, I want to take this opportunity to personally communicate with you while providing an update on the three initiatives I outlined in my first investor newsletter in January.
As a reminder, the initiatives were as follows:
1 | ) | Stabilize operations and the balance sheet |
2 | ) | Monetize proceeds from asset sales and investments |
3 | ) | Build on the existing foundation |
Regarding the stabilization of operations and the balance sheet, we have made meaningful and tangible progress. While there remains additional work to be done, much of the heavy lifting has been accomplished. We successfully bought out the Company’s founders, retired all the issued preferred stock and simplified the capitalization table, cut expenses, and improved corporate governance and operating processes. We have come a long way in a short period of time, bringing focus and professionalism to the organization. It remains my personal promise that we will strive to continue providing transparency and regular communications about our progress.
With respect to our second initiative, we successfully monetized our investment in Hydrofarm stock in June. As previously reported, we recognized
We also expect additional proceeds from the sale of two dispensaries in
Of greatest importance to our future is our third initiative, building on our existing foundation. We have deployed much of the proceeds from the sale of the Hydrofarm stock in support of this initiative through the buildout of existing but uncompleted facilities and mergers and acquisitions. Thus far, this has involved the following transactions:
- | Merger with | |
- | Acquisition of | |
- | Acquisition of People’s |
Our merger with UMBRLA closed on
The SilverStreak acquisition closed on
We announced the acquisition of People’s during the third quarter and have been working rapidly towards the close, which we expect to occur later this month. Importantly, since
At the time we signed the People’s acquisition agreement, People’s had certain other dispensaries that were under development, including:
- | ||
- | ||
- | Two other as yet unpublished locations in |
The opening of these dispensaries in the coming months will result in us having one of the strongest
In closing, while much work remains to be done, we are very pleased with our progress of the last few quarters. We are fortunate to have an amazing team of talented people who are focused and passionate about what we do. We simply could not have made such progress absent all their invaluable support, including you as a shareholder.
As a fellow shareholder, I want you to know that our goals are directly aligned. I also want you to know that I fundamentally understand that our stock price is the measuring stick for our efforts. While I personally believe there is a disparity between our current share price and what I believe it should be, it is not lost on me that past perceptions are often only changed with present performance and results. We look forward to future quarter financial releases and conference calls where we believe the value of what we are building will become more self-evident.
I want to personally thank you for your continuing support as we remain focused on earning the position of one of the pre-eminent
Regards,
Frank Knuettel II
About
Cautionary Language Concerning Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These include statements regarding management’s intentions, plans, beliefs, expectations, or forecasts for the future, and, therefore, you are cautioned not to place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Unrivaled undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law. We use words such as "anticipates," "believes," "plans," "expects," "projects," "future," "intends," "may," "will," "should," "could," "estimates," "predicts," "potential," "continue," "guidance," and similar expressions to identify these forward-looking statements that are intended to be covered by the safe-harbor provisions of the PSLRA. Such forward-looking statements are based on our expectations and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements due to a number of factors.
New factors emerge from time-to-time and it is not possible for us to predict all such factors, nor can we assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. These risks, as well as additional risks and uncertainties we face, are identified and more fully discussed in the "Risk Factors" section of Unrivaled’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the
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