TORONTO, Canada – Aegis Brands Inc. (Aegis or the Company) has reported financial results for the fourth quarter and 2021 fiscal year, which ended December 26, 2021. Aegis reported a net loss of $7,900,000 compared to a net loss of $19,600,000 in 2020. EBITDA for the year was a loss of $3,931,000, compared to a loss of $2,805,000 in the prior year.
The 4th Quarter Net loss of $2,131,000 or $0.09 per share was net income of $179,000 or $0.01 per share when adjusted for impairment charges, other income, and discontinued operations.
Revenue for the company increased 15.4% over 2020. Bridgehead Coffee’s Same Store Sales (SSS) increased 17.7% in 2021. $28,000,000 Development Line of Credit secured from CWB Franchise Finance.
Aegis Brands Inc.
In September 2021, Aegis completed a transaction with Kiaro Holdings Corp., a national cannabis retailer and wholesale distributor, to sell 100% of the common shares of the Company’s subsidiary 2734524 Ontario Inc. (dba Hemisphere Cannabis Co.).
This transaction allows Aegis to focus its ongoing operations on the food and beverage industry, including the management of the “Bridgehead Coffee” brand through its wholly-owned subsidiary Bridgehead (2000) Inc. (Bridgehead). Furthermore, in December 2021 the Company secured a $28,000,000 Development Line of Credit from CWB Franchise Finance (the Facility).
The Facility will provide the capital needed to execute on the Company’s strategy of consolidating great brands and great entrepreneurs in the food and beverage/hospitality sector. Subsequent to the end of the year, the Company restructured its credit facilities resulting in a $1 million decrease to the limit of the Facility and a corresponding increase to the Company’s general revolving credit facility.
“Heading into 2022, we continue to prioritize acquisitions to build a portfolio of great brands within Aegis,” said Steven Pelton, President and CEO of Aegis.
“As part of this strategy, we are committed to putting entrepreneurs first. We want them to know the integrity and values of their company will stay intact while it grows with alongside other brands within Aegis. Shared expertise and resources between the brands and their people will be the driving force behind the success of each brand and therefore the success of Aegis.”
