Jan 3, 2023

Published Jan. 3, 2023 Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback . Dive Brief: Following rough performance since going public in June , Grove Collaborative announced on Dec. 27 that it refinanced its existing debt with a $72 million four-year term loan, according to a company press release. The loan — which the company says will be used in its push toward profitability — matures in December 2026, with the principal repayment period starting in July 2025, per the release. Grove Collaborative’s new financing also brings in Structural Capital and Avenue Sustainable Solutions Fund as new capital partners. Dive Insight: Grove Collaborative — a consumer products company focused on sustainability — is banking on its latest debt refinancing to bring it to profitability. “We are pleased to announce this agreement, which provides greater financial flexibility to our cash and liquidity position,” Stuart Landesberg, co-founder and CEO of Grove, said in a statement. “This transaction better positions Grove for long-term success, enabling us to execute against our strategic value creation plan with the goal of achieving profitability in 2024.” The company is starting the new year after receiving a delisting notice from the New York Stock Exchange last month. While it has only been publicly trading for about seven months, Grove Collaborative was told it wasn’t in compliance with the NYSE requirement to be trading at an average closing share price of at least $1.00 over a 30-day period. At the time of publication, the company’s stock was trading at $0.40. Its third-quarter earnings in November showed net revenue dropped more than 18% year over year to $77.7 million, but it switched from a net loss to a profit of $7.7 million. The company also raised its full-year outlook, expecting net revenue between $313 million and $320 million. The company slashed its 2024 growth expectations in June , cutting its outlook from $600 million in revenue to between $330 million and $360 million. Grove Collaborative was focused on expanding wholesale partnerships during 2022. The company announced in September that it would double its retail presence through a CVS  partnership, and struck a new deal with Kohl’s in July. The company also brought in some new support throughout the year, hiring former Unilever executive Sergio Cervantes as its Chief Financial Officer and adding Drew Barrymore to its list of investors in April.