Greenfern Industries Limited Analysis

Overview

Greenfern is a New Zealand based cannabis, therapeutics and wellness company which was incorporated in 2018. The Company’s primary focus to date has been on research, harvesting and selling its hemp crops for industrial use and as ingredients for foods used in the fast-moving goods market, and establishing commercial relationships with local and overseas parties, as well as preparing to seek approvals and licenses to produce and distribute medicinal cannabis products.

Performance

The following information has been extracted from Greenfern Industries Limited's half year results, released 29 November 2024:

Financial Results Summary

Greenfern Industries Limited (“GFI”) reports revenue of $244,438 during the six-month period, which doubled (105%) the prior 6-month period ended 30 September 2023. GFI has begun to focus firmly on medicinal cannabis flower production, which has started to generate revenue in the last 6 months. This has been a long-term process as the New Zealand regulations have been slower and more difficult to navigate than was expected and operational results have been mixed.

In the six months to 30 September 2024 GFI produced a net loss attributable to shareholders of $0.65 million. This compares with a similar net loss attributable to shareholders for the previous period. The majority of expenses were identified as employee salaries, provision for bad debts in relation to Sustainable Foods and Cannvalate, insurance, depreciation and NZX compliance costs including Board and audit fees. No dividends have been declared or paid for the six months ended 30 September 2024.

The net assets as at 30 September 2024 were NZ$1.38 million, cash and cash equivalents were NZ$0.024 million, and the property, plant and equipment were NZ$2.68 million.

The company remains in a growth stage and will be reliant on continued capital raising to meet its obligations and deliver its business plans.

Since 30 September 2024 the Company has undertaken a wholesale placement, offering 9,000,000 ordinary shares, together with 4,500,000 options to subscribe for an additional ordinary share at $0.022 at any time in the following 12 months in an attempt to raise $200,000. To date the offering has raised $95,000 which has included ongoing support from directors and their associates. All existing shareholders and other investors, that qualify as wholesale investors, are welcome to participate on the same terms.

The company will continue to draw on and build on our sales contracts, future sales funnels, relationships and networks of interested parties but until then we will be relying on raising capital through the support of our shareholders.