Endexx Corp. announced a rebound in growth at its mass retail stores for the second quarter ending March 31, 2022, with revenues reaching $254,686, a rise of 73% from the corresponding period last year.
In the first six months of the year, sales grew 79% to $529,277.
The Cave Creek, Arizona-based provider of hemp-derived wellness and nutritional products added 2,800 new mass retail stores in the first three months of the current fiscal year and these generated an increase in revenues in the second quarter.
"The second quarter showed continued expansion in revenues in mass retail stores," CEO Todd Davis said in a statement.
READ: Endexx sees year-over-year revenue jump 85% in fiscal 1Q in clear sign of business rebound
The COVID-19 pandemic had a significant impact on Endexx's wholesale clients, many of whom were forced to close their doors.
Davis added that the pandemic and inflation are impacting "our wholesale ‘Mom and Pop’ and ‘Independent’ stores, while presence in Mass Retail in 2022 is showing strength."
After delays at the beginning of 2022, Endexx said it now is back on track with all SEC filings, audited financials and quarterly reports, and despite industry setbacks and challenges over the past two years, “the company believes it's in a stronger position than ever”.
It said it is ready to execute expansion investment through a Regulation A (Tier 2) round for a capital injection to support expansion growth, production and marketing, while reducing liabilities and moving the structure of the company towards listing capabilities.
This includes applying again to the OTCQB and preparing the way for a potential NASDAQ or NYSE exchange listing in the future, it said.
Endexx also pointed out that with continued growth in the big box retail stores, the company could be a candidate for a potential buyout from larger companies seeking market share in the hemp/CBD consumer product space.
“We thank our shareholders for their continued support and believe the future looks very promising as we implement the next stage of revenue growth,” Endexx concluded.
Contact the author at jon.hopkins@proactiveinvestors.com