Indiva Remains the National Market Share Leader in the Edibles Category

LONDON, ON, April 26, 2022 /PRNewswire/ – Indiva Limited (the “Company” or “Indiva“) (TSXV: NDVA) (OTCQX: NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the fourth quarter and fiscal year ended December 31, 2021. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS“). For a more comprehensive overview of the corporate and financial highlights presented in this news release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Year Ended December 31, 2021, and the Company’s Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020, which are filed on SEDAR and available on the Company’s website, www.indiva.com.

“We are pleased to report record revenue in the fourth quarter and for the fiscal year 2021, and greatly improved gross margins compared to fiscal 2020. According to data from Hifyre Inc., Indiva continued as the dominant national market share leader in edibles in 2021,and was ranked 10^th out of 134 licensed producers by consolidated market share across all categories. On a units shipped basis, Indiva ranked 4^th nationally in 2021, making Indiva an important supplier to provincial wholesalers and retailers. Our distribution has now expanded to reach all 13 provinces and territories in Canada, creating a leverageable platform for new product introduction through new licensing partnerships and in-house innovation,” said Niel Marotta, President and Chief Executive Officer of Indiva. “The recent signing of our licensing deal with Dime Industries marks Indiva’s first entrance into the vape category. Dime’s proprietary hardware and innovative cannabis formulations position Indiva to continue to gain market share as we leverage our best-in-class operations, our reputation for quality cannabis products, and our coast-to-coast-to-coast distribution platform. In addition, we expect new product introductions coming from Indiva’s in-house innovation team to spur further margin-accretive top-line growth and accelerate our path to real profitability. Further, the pursuit of innovation comes with it the goal of creating products that build on our in-house world-class expertise, as national leaders in edibles, to enable Indiva to, one day, grow beyond our Canadian borders. While in the short-term, licensing deals remain our core revenue contributor, creating the backdrop for our current success, Indiva’s future lies in innovating better products, while continuing to delight our clients and customers.”

HIGHLIGHTS

Quarterly Performance

• Record gross revenue in Q4 2021 at $10.39 million, representing a 25.1% sequential increase from Q3 2021, and a 35.3% increase year-over-year from Q4 2020.
• Record net revenue in Q4 2021 was $9.45 million, representing a 18.4% sequential increase from Q3 2021, and a 34.1% increase year-over-year from Q4 2020, driven primarily by higher sales of category leading edibles including Wana Sour Gummies and Bhang Chocolate.
• Net revenue from edible products grew to $8.23 million, up 18.9% from $6.92 million in Q3 2021 and up 39.0% from $5.92 million in the prior year period. Edible product sales represent 87.0% of net revenue in Q4 2021.
• Gross profit before fair value adjustments, impairments and one-time items improved to a record $3.0 million, or 31.7% of net revenue, versus 37.8% in Q3 2021 and 10.6% in Q4 2020. The decline in gross margin percentage sequentially was due to lower overhead absorption on goods sold in the quarter, rework and relabel costs on certain final goods, and a shift in product mix in the fourth quarter towards edible products with higher average cannabinoid content per unit. The Company expects margins to improve gradually throughout 2022 as new automation for production and packaging comes online in the second half of the year.
• In Q4 2021, Indiva sold products containing a record 60.4 million milligrams of distillate, the active ingredient in edible products, which represents a 43% increase when compared to the 42 million milligrams in product sold in Q3 2021, and a 76% increase compared to 34 million milligrams sold in Q4 2020.
• Impairment charges in the quarter totaled $1.02 million. This impairment includes a write off of aged finished goods and bulk cannabis products due to aging inventory and obsolete packaging, as well as a write down to net realizable value of high cost cannabis flower and slower moving oil-based products. The Company will continue to work to monetize any impaired inventory which remains saleable.
• Operating expenses in the quarter increased to 43.0% of net revenue, versus 39.2% in Q3 2021 and 35.6% in Q4 2020, due to higher marketing costs and sales commissions, and higher research and development costs, while general and administrative costs remained flat.
• Adjusted EBITDA declined sequentially in Q4 2021 to a loss of $0.49 million, versus a profit of $0.17 million in Q3 2021, due to specific, non-recurring research and development costs and packaging rework costs, without which Adjusted EBITDA would have been positive in the quarter. Q4 2021 improved versus a loss of $1.24 million in Q4 2020, driven by higher sales and improved margins. See “Non-IFRS Measures“, below.
• Comprehensive net loss included one-time expenses and non-cash charges including inventory impairments and losses on settlements and modification of debt totaling $1.83 million. Excluding these charges, comprehensive loss declined to $2.33 million versus a loss of $2.43 million in Q4 2020.

Fiscal Year 2021 Performance

• Record gross revenue for the year ended December 31, 2021 was $35.43 million, versus $16.19 million for the year ended December 2020, representing a 118.9% year-over-year increase.
• Record net revenue for the year ended 2021 was $32.47 million, versus $14.65 million for the year ended December 2020, representing a 121.6% year-over-year increase. Net revenue growth was driven primarily by higher sales of category leading edibles, including Wana Sour Gummies and Bhang Chocolate.
• Net revenue from edible products grew to $29.1 million in the year ended December 2021, representing 89.6% of net revenue for the year ended December 2021, versus $11.2 million or 76.4% of net revenue in the prior year period.
• Gross margin before fair value adjustments and impairments improved to a record $9.95 million or 30.6% of net revenue versus $1.54 million or 10.5% of net revenue for the year ended 2020, due to lower distillate costs, increased operating efficiency and improved fixed cost.
• In 2021, Indiva sold products containing 184.5 million milligrams of distillate, the active ingredient in edible products, which represents a 210% increase when compared to the 59 million milligrams in product sold in 2020.
• Operating expenses increased by 54.8% versus the year ended 2020, primarily due to higher marketing and sales expenses. General and administrative costs increased 8.5% for the year versus 2020. As a percentage of net revenue, operating expenses declined to 38.2% for 2021 versus 54.6% in 2020.
• Adjusted EBITDA improved to a loss of $0.29 million versus a loss of $4.49 million last year due to higher sales and improved gross margins, offset by non-recurring research and development costs and packaging rework costs in the fourth quarter.
• Impairment and one-time charges for the year totaled $9.57 million. This write-off includes a provision for aged finished goods and bulk cannabis products due to aging inventory, provisions for onerous contract, and losses on contract settlement related to the termination of the Dycar manufacturing agreement.
• Comprehensive net loss, excluding one-time expenses and non-cash charges, declined to $5.43 million in fiscal year 2021, versus a loss of $8.62 million in fiscal year 2020.

Operational Highlights for the Fiscal Year 2021

First Quarter Fiscal 2021

• Indiva closed a $22 million debt and equity placement with Sundial Growers Inc. on February 23, 2021.
• Indiva announced an extension to its license agreement with Wana Brands Inc. The amended agreement will be for a five year term and may be extended for three additional five year terms.
• Indiva expanded its distribution to nine provinces and two territories, adding a supply agreement with the Province of Newfoundland, and a distribution platform in the Northwest Territories.
• Indiva products became available for purchase through Medical Cannabis by Shoppers. Indiva also entered into an agreement to supply Abba Medix with Indiva cannabis products.
• Indiva introduced three additional gummie SKUs nationally under the Wana Quick brand in March 2021, including Pineapple Coconut, Orchard Peach and Strawberry-Lime flavours.
• Indiva strengthened its board of directors with the addition of Mr. Russell Wilson to the Company’s board. Mr. Wilson is Vice President, Business Development with W. Brett Wilson’s holding company Prairie Merchant Corporation (“PMC“), a private investment company based in Calgary, Alberta. Mr. Wilson manages PMC’s portfolio of cannabis and technology holdings, as well as participation in the company’s extensive and diversified holdings in real estate, power/energy, sports and agriculture.

Second Quarter Fiscal 2021

• Bhang Milk Chocolate was the highest velocity product in Ontario, according to data from the Ontario Cannabis Store (“OCS“) published for their fiscal year ended March 31, 2021, selling more units than any other SKU. Bhang Dark Chocolate was the 6^th highest velocity SKU.
• Bhang Cookies and Cream and Bhang Caramel Mocha Milk Chocolate became available nationally. Bhang Cookies and Cream quickly became a top seller amongst all Bhang chocolate SKUs.
• Indiva expanded its distribution of Wana Quick fast-acting gummies to six provinces and one territory. In addition, Wana Quick became available in the medical channel through the Medical Cannabis by Shoppers platform.
• Indiva made its first deliveries of Bhang Chocolate, Wana Sour Gummies and Artisan Batch flower to the Province of Newfoundland.

Third Quarter Fiscal 2021

• OCS data for the quarter ended June 30, 2021 showed four of the top 10 cannabis products sold by the OCS were Indiva products, as measured by units sold, including three Wana SKUs and one Bhang Chocolate SKU.
• Indiva expanded its distribution platform to include Prince Edward Island, bringing distribution to all 10 provinces in Canada and two territories, and in the medical channel through partnerships, including Medical Cannabis by Shoppers.
• Indiva introduced three new Cookie SKUs from Slow Ride Bakery to the Ontario market, marking Indiva’s first baked goods introduced in the edibles category. Subsequently, Indiva expanded distribution of Slow Ride Cookies to two additional provinces and introduced two new holiday themed SKUs.
• Indiva introduced a new 10-pack SKU of Wana Strawberry 10:1.
• Indiva introduced additional premium strains under the Artisan Batch brand, including Sticky Larry by Stinky Greens, and expanded its distribution of the Artisan Batch brand to Alberta.

Fourth Quarter Fiscal 2021

• Indiva completed its Warrant Incentive Program on October 12, 2021. A total of 8,866,666 warrants were exercised, providing gross proceeds to the Company of $3.55 million. 4,433,333 new warrants were issued, exercisable into common shares at $0.45, for a five-year period.
• Indiva announced an amended and increased debt facility with Sundial Growers Inc., providing the Company with an additional $8.5 million of debt. Proceeds were used to terminate and repay all remaining obligations under the Dycar manufacturing agreement.
• Indiva introduced Bhang THC White Candy Cane Chocolate in five provinces.
• Indiva launched Wana 10-pack Blood Orange 20:1, a new flavour for Wana Gummies in Canada, across six provinces and territories.
• Indiva delivered its first shipment of INDIVA Capsules to British Columbia.
• Indiva introduced new, high-potency, craft grown cultivars to the Canadian market, including Golden Pineapple by HWY 8 and Sour Glue by Purplefarm Genetics.
• Indiva received the award for Edible of the Year, for the second consecutive year, from Kind magazine for Wana Sour Gummies.
• Indiva signed a licensing and manufacturing agreement with Portland-based edibles manufacturer, Grön.
• Indiva strengthened its board of directors with the addition of Ms. Rachel Goldman. Ms. Goldman has 20 years of experience in institutional sales, financings and corporate transactions during her career while at several Canadian brokerage firms where she developed an extensive list of investor relationships. In February 2020, she was appointed to the role of Chief Executive Officer and Director of Paramount Gold Nevada Corp. (NYSE American: PZG). Ms. Goldman also serves as an independent director of Red Pine Exploration (TSXV: RPX). Ms. Goldman is a Certified Board Candidate (CDI.D) and holds a Bachelor of Commerce, Major in Finance, from Concordia University. She is fluent in French and English, and resides in Montreal, Quebec.

Events Subsequent to Year End

• Distribution: Indiva expanded its distribution coast-to-coast-to-coast to all 10 provinces and 3 territories, adding a supply agreement with Nunavut in Q1 2022.
• Grön Pearls: The OCS accepted four Pearl gummie SKUs listings, with initial deliveries expected in July 2022.
• Wana: Wana Quick Midnight Berry launched in Ontario, BC and Alberta. Sell-in has been robust, and orders continue to grow for this innovative CBN gummie. Indiva also introduced three additional gummie SKUs nationally under the Wana Quick brand, including Lemon Cream and Island Punch, and Wana Passion Fruit.
• Jewels Cannabis Tarts: Successfully launched two new SKUs, in Strawberry and Raspberry 1:1 flavours in four provinces and territories, including Ontario, with further deliveries expected in Q2 to additional provinces, including Alberta.
• Dime Industries (“Dime“): Indiva signed an exclusive licensing and manufacturing agreement with Dime. The agreement has a five year term which automatically renews for three additional five year terms. Indiva intends to launch Dime’s proprietary and innovative vape products, including disposable vapes, 510-thread carts and custom batteries beginning in Q3 2022, marking Indiva’s first entrance into the vape category.
• Awards: Artisan Batch was awarded Best in Grow from Cannabis NB for best Indica flower, namely Sour Glue, produced by Purplefarm Genetics.
• Licensing: Indiva was granted a Research Licence from Health Canada, which will allow the Company to conduct sensory evaluation trials on site of medicated samples.

Market Share

• Sell through data from Hifyre Inc. for the fourth quarter of 2021 shows strong sell-through of Indiva edible products. With 40.2% share of sales, Indiva continues to lead in the #1 market share position in the edibles category:

Outlook

• The Company expects that Q1 2022 net revenue will be lower sequentially, but significantly higher year-over-year, due to normal seasonal factors affecting edible sales. However, the second half of the year should show robust sequential and year-over-year growth, due to the introduction of several new products and SKUs including, Pearls gummies, Pips candy-coated chocolates, Dime Industries vapes products, as well as new Indiva branded products, resulting from in-house innovation.
• Margins are expected to benefit in the second half of 2022 due to the implementation of automation in the production and packaging of edible products. The Company has experienced some delays in receiving equipment, in part due to global covid lockdowns, however this is not expected to affect the Company’s ability to deliver on its commitments for existing or new listings of products.
• Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand, with special focus on high THC potency, robust terpene content, premium buds and fresh harvest dates.

OPERATING AND FINANCIAL RESULTS FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2021

Operating Expenses

COVID-19

Government and private entities are still assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced health and safety protocols in place to protect its employees. The Company continues to assess the customer, supply chain, and staffing implications of COVID-19 and is committed to making continuous adjustments to minimize disruption and impact. Indiva will remain proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to protect Canadians.

CONFERENCE CALL

The Company will host a telephone conference call to discuss its results on Tuesday, April 26, 2022 at 8:30 a.m. (EST). Interested participants may join by dialing 416-764-8658 or 1-888-886-7786. The conference ID number is 17137881.

A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 137881#. The recording will remain available until Thursday, May 26^th, 2022.

ABOUT INDIVA

Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang^® Chocolate, Wana Sour Gummies, Slow Ride Bakery Cookies, Jewels Chewable Tablets, Ruby^® Cannabis Sugar, Grön edibles, Dime Industries^TM vape products, as well as capsules, pre-rolls and premium flower under the INDIVA and Artisan Batch brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

DISCLAIMER AND READER ADVISORY

General

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this news release contains forward-looking information relating to, among other things, (i) the Company’s outlook for and expected operating margins and future financial results, (ii) the projected growth of its business and operations (including existing and new segments thereof), and the future business activities of, and developments related to, the Company within such segments after the date of this news release, (iii) additional jurisdictions within which the Company may establish its operations or business footprint, (iv) the Company’s ability to capture and/or maintain its market share in any jurisdiction, and (v) the Company’s ability to deliver on its commitments for existing or new listings of products. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company, and include, without limitation, assumptions about the Company’s future business objectives, goals, and capabilities, the cannabis market, the regulatory framework applicable to the Company and its operations, and the Company’s financial resources. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks inherent in the cannabis industry, (iv) risks associated with economic conditions, (v) dependence on management, (vi) public opinion and perception of the cannabis industry, (vii) risks related to contracts with third-party service providers, (vii) risks related to the enforceability of contracts, (viii) reliance on the expertise and judgment of senior management of the Company, and ability to retain such senior management, (ix) risks related to proprietary intellectual property and potential infringement by third-parties, * risks relating to the management of growth and/or increasing competition in the industry, (xi) risks associated to cannabis products manufactured for human consumption, including potential product recalls, (xii) risks related to the economy generally, and (xiii) risk of litigation.

The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake to, update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the Company’s prospective results of operations, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. FOFI contained in this news release was approved by management as of the date of this news release and was provided for the purpose of providing further information about the Company’s future business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

The non-IFRS measure used in this news release includes “Adjusted EBITDA”. The Company calculates Adjusted EBITDA as a sum of net revenue, other income, cost of inventory sold, production salaries and wages, production supplies and expense, general and administrative expense, and sales and marketing expense, as determined by management. Adjusted license fee eliminates 50% of the fee which is equivalent to the Company’s share of the joint venture company to which the license fee is paid. Adjusted EBITDA is provided to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. Management believes that Adjusted EBITDA provides useful information to investors as it is an important indicator of an issuer’s ability to generate liquidity through cash flow from operating activities and equity accounted investees. Adjusted EBITDA is also used by investors and analysts for assessing financial performance and for the purpose of valuing an issuer, including calculating financial and leverage ratios. The most directly comparable financial measure that is disclosed in the financial statements of the Company to which the Non-IFRS measure relates is income (loss) from operations.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Fourth quarter 2021 Revenue and Adjusted EBITDA² of $33 million and $9 million, representing an increase of almost 200% and 140% YoY, respectively

Record fiscal year 2021 revenue and Adjusted EBITDA² of $89 million and $23 million, representing an increase of over 230% and of almost 250% YoY, respectively

Estimated net income of $5 million for 2021

Strong balance sheet with $89 million cash

Six consecutive quarters with positive cash flow from operations

Revenue growth expected to continue in the first quarter and throughout 2022

NEW YORK, TORONTO, and HERZLIYA, Israel, April 04, 2022 (GLOBE NEWSWIRE) — In a release published under the same headline earlier today by InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR), please note that the monetary units in the tables should be Canadian dollars, not New Israeli Shekels as previously stated. The corrected release follows:

InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (dba Canndoc) (“InterCure” or the “Company”) is pleased to announce its estimated financial and operating results for the fourth quarter and year ended December 31, 2021. All amounts are expressed in New Israeli Shekels (NIS) or Canadian dollars ($), unless otherwise noted.

Fourth Quarter 2021 Key Financial1 & Operating Highlights

• Record revenue of $33 million (NIS 80 million), higher than preliminary results and three times greater than the fourth quarter of 2020 and representing sequential growth of 29%.
• Record adjusted EBITDA of $9 million (NIS 21 million), representing an 140% increase year-over-year, sequential growth of almost 50% and adjusted EBITDA margin of 26%.
• Eighth consecutive quarter of high double-digit growth representing an estimated annualized run rate of over $130 million (NIS 320 million).
• Estimated net income of $1 million (NIS 3 million) for 2021.
• Sixth consecutive quarter of positive cash flow from operations.
• Announced European expansion with international cannabis brand Cookies – opening first retail locations in Austria and the United Kingdom.
• Company surpassed one-ton medical cannabis products dispensed per month in the fourth quarter, representing approximately 30% market share of Israel’s medical cannabis.

Full Year 2021 Key Financial1 & Operating Highlights

• Record fiscal year 2021 revenue and Adjusted EBITDA of $89 million (NIS 220 million) and $23 million (NIS 55 million), representing an increase of 230% and 250% year-over-year, respectively.
• Adjusted EBITDA margin of 25% for the fiscal year 2021 up 1% from 2020.
• Cash at year end of $89 million (NIS 217 million).
• Estimated net income of $5 million (NIS 13 million) for 2021.
• Increased market share due to solid demand for Canndoc’s branded products and expansion of the Company’s medical cannabis dispensing operations.
• Added 19 locations to its leading medical cannabis dedicated pharmacy chain, out of which 13 are actively dispensing medical cannabis.
• Announced the first major consolidation in the pharmaceutical medical cannabis space with the signing of an LOI to acquire multi-national licensed producer “Better”.
• Solid international demand for InterCure’s GMP branded products expected to boost global expansion as Israeli government eases regulation on exportation.
• Legislation of adult use cannabis and CBD products in Israel progresses as a new government sworn into office in June 2021.
• InterCure commenced trading on Nasdaq, CEO Alexander Rabinovitch purchased on the open market a total of 423,501 shares of the Company’s common stock for a total investment in the Company of $3,790,238 per share or NIS 9,608,631.
• During the third quarter, InterCure received 5.2 million shares back from the sponsor of our SPAC transaction. According to the agreement the shares were subject to forfeiture from the SPAC sponsor based upon share price target criteria. The return of the shares to the company without cost adds a significant value of approximately $56 million by the current share price to all InterCure’s shareholders.

Post-fourth quarter 2021 Highlights

• Announced it has signed a definitive agreement to acquire 100% of Better’s shares.
• Announced international strategic partnership with Clever Leaves.
• Company expected to capitalize on new CBD market following the Israeli Minister of Health’s announcement that CBD will be removed from the Dangerous Drugs Act through strategic partnerships with Charlotte’s Web.
• Signed definitive agreement with Altman Health, the leading Israeli wellness brand with distribution into 1,700 points of sale, focusing on the new Israeli CBD product market.
• Added 3 new medical cannabis dedicated pharmacies to the Company’s chain, totaling 23 retail locations across Israel, out of which 15 are actively dispensing medical cannabis.

“2021 was another successful year for InterCure as we continued to execute our profitable growth strategy while strengthening our brands, manufacturing, distribution and consolidation leadership” said InterCure CEO Alexander Rabinovitch, adding “We achieved another significant milestone of almost 230% year-over-year growth in revenues with 250% growth in adjusted EBITDA, with one of the strongest balance sheets in the sector. In addition, we increased our number one market share in the leading medical cannabis market outside North America. Looking towards 2022, we are focused on executing our international expansion, including opening the first medical cannabis pharmacies in Austria and UK, entering the Australian medical cannabis market and laying down the infrastructure for entering the US market in the mid-term as federal legalization advances. Leading the consolidation process, continued expansion of our pharmaceutical grade cannabis dispensing operation, and our global expansion creates visible momentum for continued near and long-term profitable growth, generating value for shareholders and relief for patient communities.”

“The fourth quarter of 2021 is InterCure’s eight consecutive quarter with quarter-to-quarter high double-digit growth and sixth consecutive quarter with positive cash flow from operations” said InterCure CFO Amos Cohen, adding “Our focus and strong execution in 2021 positions us very well for the significant growth opportunities in 2022 and beyond. I am proud of the hard work and dedication of all our team members who make this success possible.”

Key Q4 and Full Year 2021 Estimated Financial Highlights – Cannabis Sector

(In thousands CAD)

(1) Gross profit before effect of fair value.
(2) EBITDA adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below.

Rescheduled Webcast and Conference Call
The Company will conduct a webcast on Wednesday, April 6, 2022 at 8:30 a.m. (Eastern Time) to review the results as well as provide an overview of the Company’s recent milestones and growth strategy.

To access the conference call, United States participants please dial (844) 310-5056, or for international callers, 1-706-679-4749. Conference ID: 5661207.

Participants can access the live webcast through the following link:
https://bit.ly/37N92wN

Consolidated Financial Statements and Management’s Discussion and Analysis
The publication of InterCure’s audited financial statements and accompanying notes for the year ended December 31, 2021 and related management’s discussion and analysis of financial condition and results of operations (“MD&A”) was delayed due to immaterial technical matters being finalized with the Company’s auditors and are expected to be available under the Company’s profile on SEDAR before market opens April 5, 2022.

About InterCure (dba Canndoc)

InterCure (dba Canndoc) (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) is the leading, profitable, and fastest growing cannabis company outside of North America. Canndoc, a wholly owned subsidiary of InterCure, is Israel’s largest licensed cannabis producer and one of the first to offer Good Manufacturing Practices (GMP) certified and pharmaceutical-grade medical cannabis products. InterCure leverages its international market leading distribution network, best in class international partnerships and a high-margin vertically integrated “seed-to-sale” model to lead the fastest growing cannabis global market outside of North America.

For more information, visit: http://www.intercure.co.

Non-IFRS Measures

This press release makes reference to certain non-IFRS financial measures. Adjusted EBITDA, as defined by InterCure, means earnings before interest, income taxes, depreciation, and amortization, adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This measure is not a recognized measure under IFRS, does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. InterCure’s method of calculating this measure may differ from methods used by other entities and accordingly, this measure may not be comparable to similarly titled measured used by other entities or in other jurisdictions. InterCure uses this measure because it believes it provides useful information to both management and investors with respect to the operating and financial performance of the company. A reconciliation of Adjusted EBITDA to an IFRS measure will be provided in the MD&A.

Caution Regarding Financial Estimates

The financial estimates set forth above are based on the review of the Company’s operations for the year ended December 31, 2021 and are subject to change. The Company’s independent registered public accounting firm, Somekh Chaikin (member firm of KPMG International), has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company’s results for any future period.

Forward-Looking Statements

This press release may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to InterCure’s objectives plans and strategies, as well as statements, other than historical facts, that address activities, events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as “believes,” “hopes,” “may,” “anticipates,”, “should,” “intends,” “plans,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy” and similar expressions and are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause InterCure’s actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company’s ability to file its audited financial statements and MD&A for the year ended December 31, 2021 on SEDAR before market opens April 5, 2022, the Company’s future revenue growth and profitability, the success of its global expansion plans, , its continued growth, the expected operations, financial results business strategy, competitive strengths, goals and expansion and growth plans, expansion strategy to major markets worldwide, the impact of the COVID-19 pandemic and the war in Ukraine. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond InterCure’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in Subversive Acquisition LP’s final long form prospectus dated March 15, 2021, which is available on SEDAR at www.sedar.com, and under the heading “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the registration statement on Form 20-F, filed with the Securities Exchange Commission on July 14, 2021, as amended August 3, 2021 and August 18, 2021. InterCure undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Contact:

InterCure Ltd.
Amos Cohen, Chief Financial Officer
[email protected]

1 Unaudited estimated cannabis sector results.
2 EBITDA adjusted for changes in the fair value of inventory, share-based payment expense, impairment losses (and gains) on financial assets, non-controlling interest and other expenses (or income). This is a non-IFRS financial measure and does not have a standardized meaning prescribed by IFRS, please see “Non-IFRS Measures” below.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

OXFORD, Ohio and COCONUT CREEK, Fla., March 2, 2022 /CNW/ – PsyBio Therapeutics Corp. (TSXV: PSYB) (OTCQB: PSYBF) (“PsyBio” or the “Company“), an integrated and intellectual property driven biotechnology company developing novel, bespoke psychoactive medicinal candidates targeting the potential treatment of mental health challenges, neurological disorders and other human health conditions, today announces that it has reported its audited financial results for the year ended December 31, 2021.

Annual 2021 Financial Results

A copy of the audited condensed consolidated annual financial statements prepared in accordance with International Financial Reporting Standards and the corresponding management’s discussion and analysis for the year ended December 31, 2021, can be found under PsyBio’s profile on SEDAR at www.sedar.com.

“PsyBio is developing an advanced life science platform technology in the emerging psychedelic research industry,” stated Evan Levine, Chief Executive Officer. “Our filed intellectual property is based on producing and scaling drug candidates using genetically modified organisms. The PsyBio team collectively has experience managing thousands of clinical trials and achieving hundreds of regulatory approvals related to therapeutics, diagnostics and devices. PsyBio has filed sixteen patent applications to date on its discovery accomplishments and is looking forward to filing an Investigational New Drug (“IND“) application for its first biosynthetic therapeutic candidate and launching clinical trials this year.”

Fourth Quarter Development Milestones

• The Company sponsored sixteen collaborative research abstract presentations at two scientific conferences. These abstracts cover a wide variety of topics including: biosynthetic pathway and transcriptional methodologic development; evaluation; screening and optimization of systems and organisms; increasing bioproduction yields of natural and non-natural products, as well as the evaluation of impulsivity, motivational, psychiatric, and psychoactive effects of PsyBio’s portfolio of compounds.

• The Company successfully completed its first pre-IND meeting with the United States Food and Drug Administration (the “FDA“). The focus of this pre-IND meeting was to discuss potential indications, manufacturing strategy, and obtain regulatory guidance as PsyBio guides its technology forward towards regulatory approval. The responses received from the FDA to these initial set of questions were constructive, and no changes were proposed with respect to PsyBio’s approach. Based upon this initial discussion, PsyBio intends to submit compound specific pre-IND meeting requests to define manufacturing and clinical trial parameters.

• The Company established new research and development laboratories to facilitate portfolio development progress. The new laboratory space at Miami University is expected to provide a comprehensive, state-of-the-art research environment in which PsyBio’s ever-expanding portfolio of compounds can be more readily and rapidly developed. This continued collaboration with Miami University is anticipated to expedite progress toward PsyBio filing an IND application with the FDA.

About PsyBio Therapeutics Corp.

PsyBio Therapeutics is a fully integrated and intellectual property driven biotechnology company developing novel psychoactive medicinal candidates produced by genetically modified organisms targeting the potential treatment of mental health challenges, neurological disorders and other human health conditions. The team has extensive experience in drug discovery based on synthetic biology and metabolic engineering as well as clinical and regulatory expertise progressing drugs through human studies and regulatory protocols. Research and development is currently ongoing for naturally occurring psychoactive tryptamines originally discovered in different varieties of hallucinogenic mushrooms, other tryptamines and phenethylamines and combinations thereof. The Company utilizes a bio-medicinal chemistry approach to therapeutic development, in which psychoactive compounds can be utilized as a template upon which to develop precursors and analogs, both naturally and non-naturally occurring, specifically because they are already known to have an effect within the brain.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. Forward looking-statements in this press release include statements regarding: the anticipated benefits of the laboratory space at Miami University on PsyBio’s research and development activities; PsyBio’s plans to submit compound specific pre-IND meeting requests to the FDA to define manufacturing and clinical trial parameters; PsyBio’s plans and ability to file an IND application with the FDA within expected timeframes, if at all; PsyBio’s plans and ability to launch clinical trials within expected timeframes, if at all; the ability of PsyBio to develop novel psychoactive medicinal candidates produced by genetically modified organisms targeting the potential treatment of mental health challenges, neurological disorders and other human health conditions; the ability of PsyBio to build its intellectual property portfolio of novel drug candidates; the ability to achieve cost competitive synthesis with reduced environmental impact over current production methods; and the ability of PsyBio to move target candidates into scaled commercial manufacturing and regulatory application.

In disclosing the forward-looking information contained in this press release, the Company has made certain assumptions, including that: PsyBio will be successful in protecting its intellectual property; PsyBio will be successful in discovering new valuable target molecules; the laboratories at Miami University will benefit PsyBio’s research and development activities; the continued collaboration with Miami University will expedite progress toward filing an IND application with the FDA; PsyBio will submit compound specific pre-IND meeting requests to the FDA; the FDA will grant such pre-IND meetings and the outcome of such meetings will be favourable; PsyBio will file one or more IND applications with the FDA; PsyBio will be able to obtain all necessary approvals for clinical trials; PsyBio will be successful in launching clinical trials; the results of preclinical safety and efficacy testing will be favorable; PsyBio’s technology will be safe and effective; a confirmed signal will be identified in PsyBio’s selected indications; and that drug development involves long lead times, is very expensive and involves many variables of uncertainty. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: compliance with extensive government regulations; domestic and foreign laws and regulations adversely affecting PsyBio’s business and results of operations; decreases in the prevailing process for psilocybin and nutraceutical products in the markets in which PsyBio operates; the impact of COVID-19; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.

PsyBio makes no medical, treatment or health benefit claims about PsyBio’s proposed products. The FDA or other similar regulatory authorities have not evaluated claims regarding psilocybin and other next generation psychoactive compounds. The efficacy of such products has not been confirmed by FDA-approved research. There is no assurance that the use of psilocybin and other psychoactive compounds can diagnose, treat, cure, or prevent any disease or condition. Vigorous scientific research and clinical trials are needed. PsyBio has not conducted clinical trials for the use of its intellectual property. Any references to quality, consistency, efficacy and safety of potential products do not imply that PsyBio verified such in clinical trials or that PsyBio will complete such trials. If PsyBio cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on the PsyBio’s performance and operations.

The TSX Venture Exchange (the “TSXV“) has neither approved nor disapproved the contents of this news release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.