Goodness Growth Holdings, Inc. (PNK:GDNSF) Q4 2022 Earnings Call Transcript

Amber Shimpa: That was exactly what I was looking for. Just last question for me here, John, I think you did touch on it, but I was just looking, potentially, for some more color on some of those performance-based milestones that could help extend your loan maturity to 2026. I think you may have mentioned some fixed charge ratios and then just overall focus on cash flow. So just seeing if I heard that right and then if there’s any additional color that you have to offer on those milestones.

Josh Rosen: I wanted to know one thing from the conversation because a lot of €“ these things all tie together. Cash flow performance comes from operating performance. And one of the things that was really key in our conversations with Chicago Atlantic, when it came to extending was needing to improve our performance. And so, the way we’ve discussed these things internally is I would qualify the extension milestones as attainable, but they’re not no-brainers, we have to perform, as we should. And so, that’s the context that I’ll give is, if we execute like we think we should, we can attain those. And as John mentioned on the prepared remarks, they’re fixed charge ratio oriented. But, John, feel free to jump in with more specifics.

John Heller: Eric, later this year, there’ll be a fixed charge coverage covenant in place in the amended credit facility. And then, starting in the first quarter of next year, 2024, we’ll have the optional extension of the facility if we can slightly outperform the base covenant of the fixed charge coverage. So, that’ll ratchet up from a quarter to a half a turn of fixed charge throughout 2024 into 2025. It’s pretty simple. That’s how that’ll work.

Operator: . I would now like to turn the call over to Josh Rosen for closing remarks.

Josh Rosen: All right. Well, thank you for participating in today’s call. I’d like to conclude by noting that I’m really excited about the opportunities in front of us. We have an enviable geographic footprint. And I can feel the initial momentum of our CREAM and Fire initiatives. We’re going to continue to focus on executing what’s within our control amidst the current landscape. The core of our business isn’t all that complicated. We grow, manufacture and sell cannabis. It’s simply highly nuanced because of the patchwork regulatory environment and various levels of state level competition. What we clearly control is being focused on getting better at the basics to delight our customers. And with that, I will hand it back over to the operator.

Operator: Thank you, ladies and gentlemen. This does conclude today’s call. Thank you for your participation. You may now disconnect.