306% growth capturing channel, category, and innovation in clean-ingredient food, next generation skincare, and plant-based wellness

VANCOUVER, BC , May 4, 2023 /CNW/ – Simply Better Brands Corp. (“SBBC” or the “Company”) (TSXV: SBBC) (OTCQB: PKANF) is pleased to announce its unaudited financial results for the year ended December 31, 2022. All amounts are expressed in United States dollars unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, are non-International Financial Reporting Standards (“IFRS”) measures, see “Non-IFRS Measures” below.  The Company expected to file its audited financial statements for the year ended December 31, 2022 and management discussion and analysis shortly.

2022 YEAR KEY COMMERCIAL ACHIEVEMENTS

• TRUBAR Protein Bar: In additional to supporting a U.S. and Canadian-based retailers base, TRUBAR was able to expand into roughly 50% of U.S. and Canadian Costco Clubs throughout 2022. As TRUBAR exceeded the bar category sales velocities at Costco, TRUBAR is currently in national distribution at Costco. Supporting the brands continued expansion are four initiatives: manufacturing capacity expansion, continued omni-channel distribution growth, bar flavor extensions, and the entry into the $8 billion protein powder category in 2023.

• PureKana Wellness: PureKana, a leading plant-based wellness brand, remained focused on a its customer acquisition initiative, adding over 18,700 customers per month and enabling the sales funnel into a subscription model. To expand beyond human consumption, PureKana announced its 2023 entry into the $196 million hemp-based pet category with offerings in with calming chews, hip & joint chews, and hair & coat drops. As an estimated 60% of PureKana’s loyal customers have pets, the growth opportunity is sizeable.

• No B.S. Skincare: Originally, the No B.S. brand was sourced exclusively online at livenobs.com and Amazon. In 2022, the brand entered 3,200 CVS Health stores for a Back-to-School Event and continues to maintain a on shelf presence in CVS’s healthy skin section. Initial brick and mortar success has the brand slotted to enter an additional large, national chain in summer 2023. Sources of growth include omni-channel expansion supported by insight-driven innovation with an expanded facial acne patch portfolio (overnight pimple patch and acne patch plus retinol night cream) and a natural deodorant category entry.

• Vibez Wellness: The Vibez Wellness line was launched in November 2022 to capture incremental millennial consumers on their preventative wellness journey. With an initial keto gummy supplement offering, the brand achieved $1.4M in revenue in the first 60 days of launch. Vibez’s primary focus is non-CBD solutions into the weight management, focal acuity, and healthy hair consumer need states.

“As our strong 2022 financial and commercial results illustrate, we are positioned for continued revenue growth, profit improvement, and debt reduction in 2023. Our strategic priorities remain to lead consumer-centric innovation and relentlessly acquire customers to these emerging brands by driving category and channel expansion. With our recent $7 million finance raise, we are aptly fueled to deliver the 2023 outlook of $80 million in revenue and $3-4 million in adjusted EBITDA at a gross margin target range of 58-60%,” says SBBC CEO, Kathy Casey.

UNAUDITED FINANCIAL HIGHLIGHTS FOR YEAR ENDED DECEMBER 31, 2021

For the twelve months ended December 31, 2022, the Company generated revenue of $65.4 million with a gross profit of $44.6 million (68%) compared to $15.6 million with a gross profit of $9.7 million (62%) during the twelve months ended December 31, 2021.  Revenue increased by $49.8 million (319% increase) over the prior year’s revenues.

Operating costs for the twelve months ended December 31, 2022, were $54.3 million, an increase of $34.8 million (178%), compared to $19.5 million for the twelve months ended December 31, 2021.

During the twelve months ended December 31, 2022, the Company recorded a net loss of $11.1 million compared to a net loss of $12.8 million for the twelve months ended December 31, 2021.

For the three months ended December 31, 2022, the Company generated revenue of $23.0 million with a gross profit of $16.1 million (70%) compared to $6.5 million with a gross profit of $4.3 million (66%) during the three months ended December 31, 2021.  Revenue increased by $16.5 million (254% increase) over the prior period’s revenues.

Operating costs for the three months ended December 31, 2022, were $19.9 million, an increase of $13.0 million (188%), compared to $6.9 million for the three months ended December 31, 2021.

During the three months ended December 31, 2022, the Company recorded a net loss of $4.2 million compared to a net loss of $4.2 million for the three months ended December 31, 2021.

Non-IFRS Measures (Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA)

EBITDA and Adjusted EBITDA are non-IFRS measures used by management that are not defined by IFRS. EBITDA and Adjusted EBITDA do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Management believes that EBITDA and Adjusted EBITDA provide meaningful and useful financial information as these measures demonstrate the operating performance of the business excluding non-cash charges.

The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss. The following table presents the EBITDA and Adjusted EBITDA for the twelve months ended December 31, 2022, and 2021, and a reconciliation of same to net income (loss):

The Company has an adjusted EBITDA of $1.2 million for the year ended December 31, 2022, an increase of $4.5 million over the adjusted EBITDA loss for the comparable period in 2021.

The Company generated positive adjusted EBITDA of $0.6 million for the three months ended December 31, 2022, an increase of $1.7 million over the adjusted EBITDA loss for the comparable period in 2021.

Readers are cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net income as determined under IFRS; nor as an indicator of financial performance as determined by IFRS; nor a calculation of cash flow from operating activities as determined under IFRS; nor as a measure of liquidity and cash flow under IFRS. The Company’s method of calculating EBITDA and Adjusted EBITDA may differ from methods used by other companies and, accordingly, the Company’s EBITDA and Adjusted EBITDA may not be comparable to similar measures used by any other company. Except as otherwise indicated, EBITDA and Adjusted EBITDA are calculated and disclosed by SBBC on a consistent basis from period to period.  Specific adjusting items may only be relevant in certain periods.

See also Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) and Adjusted EBITDA (Non-GAAP Measures) in the Company’s management discussion and analysis for the year ended December 31, 2022 available on SEDAR at www.sedar.com.

Liquidity and Capital Resources

The Company’s primary liquidity and capital requirements are for inventory and general corporate working capital purposes. The Company had a cash balance of $2.3 million as of December 31, 2022, which will provide capital to support the planned growth of the business and for general corporate working capital purposes. The Company’s working capital deficiency decreased from $11.8 million as of December 31, 2021, to a working capital deficiency of $9.3 million as of December 31, 2022 ($2.5 million decrease). Working capital deficiency included the Mainstreet loan ($10.3 million) which is classified as current whereas the term is for 5 years maturing in December 2025.  The Mainstreet loan has a five-year term with principal repayments due to start in December 2023 with the first $1.5 million principal repayment. This loan has several covenants including annual and quarterly reporting and debt service coverage. The Company was not compliant with the debt service covenant as of December 31, 2022 although it made progress in improving the Adjusted EBITDA performance of Purekana LLC during the year. For example, adjusted EBITDA reported for Purekana LLC for the year ended December 31, 2022 was $1.4 million compared to an adjusted EBITDA loss of $1.4 million for the year ended December 31, 2021 or a $2.8 million improvement. No notice of default has been received by the Company as of the date of this news release and the Company has been paying the interest on a regular basis. It has been classified as current as a result of the noncompliance with the debt service covenant.

The Company continues to focus on improving its working capital position through a number of initiatives including equity and convertible debt private placements, issuance of promissory notes and establishment of lines of credit for its subsidiaries.

Private Placements

The Company completed a private placement raise in August of 2022 and raised CA$3,990,844 ($3,069,880) in common shares and convertible debentures. The funds raised were used for debt reduction and working capital.

Subsequent to the year ended December 31, 2022, The Company raised an additional CA$7,000,000 in equity to be used for further debt reduction, working capital and for growth initiatives in 2023.

Convertible Debentures

During the year ended December 31, 2022, the Company reduced the balance of convertible debentures outstanding by $1.0 million.  Subsequent to the year ended December 31, 2022, The Company paid down $1.7 million in convertible debentures including accrued interest that were due in February 2023.

Line of Credit Facilities

The Company has secured several lines of credit facilities for three of its subsidiaries to support the financing of purchase orders from key customers. These lines of credit have been critical to finance the large retail purchase orders the Company’s subsidiaries have successfully generated during the year ended December 31, 2022.  For more information of the line of credit facilities please refer to note 10 in the financial statements for the year ended December 31, 2022.  During the year ended December 31, 2022, the Company raised over $8 million in funds from these lines of credit to finance purchase orders from its large retail customers. Over the same period, the Company repaid over $5.9 million of these credit facilities to the lender. TRU was able to increase its primary line of credit with this lender to $6 million in December 2022. The nature of these loans is to turnover between 3-5 months from the time the money is advanced to repayment.

Promissory Notes

During the year ended December 31, 2022, the Company reduced the balance of promissory notes outstanding by approximately $3.5 million.  All promissory notes paid off during the year had a maturity less than 12 months.

The Company was able to secure a $1 million promissory note with a duration of 42 months during the year for debt reduction and working capital. The loan bears 15% interest per annum and will be repaid over 42-months starting November 15, 2022.

The Company entered into an agreement with the third party to settle the payment of the assigned portion of the PK Promissory Notes ($1,166,168). The Company made payments totaling $350,000 to the assigned portion of the PK Promissory Notes during the year. The agreement calls for monthly payments of $50,000 which began on December 15, 2022, and continues until the $1,166,168 amount is paid in full. The note bears an interest rate of 6%.

2023 OUTLOOK

For our 2023 Outlook:

1. The Company’s expectation for consolidated net sales to exceed $80 million.
2. The Company expects gross margin as a percentage of net sales to be between 58% and 60%.
3. The Company expects to achieve positive Adjusted EBITDA in the range of $3-4 million.

The Company is also reported on preliminary sales for the first quarter of fiscal 2023 of $24.8 million compared to $12.1 million in Q1 2022 or a 205% increase. Preliminary gross profit for the first quarter of 2023 is 55% compared to 66% in the first quarter of 2022. The lower gross margin is due to sales channel mix as a larger portion of sales to retailers compared to the prior year’s predominantly online sales delivery.

About Simply Better Brands Corp.

Simply Better Brands Corp. leads an international omni-channel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories. The Company’s mission is focused on leading innovation for the informed Millennial and Generation Z generations in the rapidly growing plant-based, natural, and clean ingredient space. The Company continues to focus on expansion into high-growth consumer product categories including plant-based food, clean ingredient skincare and plant-based wellness. For more information on Simply Better Brands Corp., please visit: https://www.simplybetterbrands.com/investor-relations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

Certain statements contained in this news release constitute “forward-looking information” and “forward looking statements” as such terms are used in applicable Canadian securities laws. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions, including, among others, that the Company’s financial condition and development plans do not change as a result of unforeseen events, the impact of the COVID-19 pandemic, the regulatory climate in which the Company operates, and the Company’s ability to execute on its business plans. Specifically, this news release contains forward-looking statements relating to, but not limited to: entry into the $8 billion protein powder category in 2023, expansion plans for TRU Brands products, filing of the Company’s audited financial statements for the year ended December 31, 2022 and management discussion and analysis and, success of the Company’s marketing efforts.

Forward-looking statements and information are subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking statements and information. Factors that could cause the forward-looking statements and information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, ability to obtain necessary regulatory approvals for proposed transactions, as well as the other risks and uncertainties applicable to the plant-based food, clean ingredient skincare and plant-based wellness or broader wellness industries and to the Company, and as set forth in the Company’s annual information form available under the Company’s profile at www.sedar.com.

The above summary of assumptions and risks related to forward-looking statements in this news release has been provided in order to provide shareholders and potential investors with a more complete perspective on the Company’s current and future operations and such information may not be appropriate for other purposes. There is no representation by the Company that actual results achieved will be the same in whole or in part as those referenced in the forward-looking statements and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

Financial Outlook

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the financial results the quarter ended March 31, 2023, and the year ended December 31, 2022, including net sales, gross margin, and Adjusted EBITDA, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out under the heading “Forward-Looking Information”. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis, reflecting management’s best estimates and judgments and the FOFI contained in this press release was approved by management as of the date hereof. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this press release was made as of the date hereof and was provided for the purpose of providing further information about the Company’s anticipated future business operations on a quarterly and annual basis. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.

SOURCE Simply Better Brands Corp

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.

CALGARY, AB, April 24, 2023 /CNW/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce its audited financial results for the three and twelve month periods ending December 31, 2022.

“Our fourth quarter results capped off a year of strong financial performance with record results including market share, net revenue, adjusted EBITDA, and adjusted net income. This creates momentum heading into 2023 with demand continuing to grow and assets well positioned to deliver on this demand”, said Paul Wilson, CEO of Decibel. “We have a number of 2023 catalysts that support an outlook where Decibel continues to build its market share and brand position in Canada and in turn leverage into international opportunities.”

Fiscal Year 2022 Financial Highlights

• Record Net Revenue of $79.3 million in 2022, an increase of 51% over 2021.
• Record Adjusted EBITDA⁽¹⁾ of $17.0 million in 2022, an increase of 129% over 2021.
• Record Adjusted Net Income⁽¹⁾ of $3.1 million in 2022, an increase of $11.7 million over 2021.
• Record Adjusted Earnings per Share⁽²⁾ of $0.01, an increase of $0.03 over 2021.
• First branded product sale to Israel as Decibel begins to expand internationally.

Fourth Quarter Highlights

• Record National Market Share⁽¹⁾ of 6.0% in Q4 2022 and 6.6% in December 2022 which placed Decibel as the 4^th and 3^rd largest licensed producer in Canada by market share for the respective periods.
• Record Net Revenue was $25.8 million in the fourth quarter of 2022, with strong sequential growth of 41% over the prior quarter and year over year growth of 84%. The net revenue growth was driven by increased demand for the Company’s derivative products and the Company’s first two sales of branded dried flower product in Israel. Net revenue growth year over year was driven by expanded distribution, new infused products and continued growth in demand for derivative products.
• Gross Margin Before Fair Value Adjustments was 43% in the fourth quarter of 2022, compared to 52% in the prior quarter and 26% in the fourth quarter of 2021. The fourth quarter was partially impacted by a provision and write off of cultivation and extraction inventory of approximately $3.2 million. The increase year over year was a result of significant cost savings realized in the third quarter of 2022 from initiatives including operational efficiencies, automation equipment commissioned, and sourcing of more cost-effective components related to the manufacturing of cannabis products. The Company anticipates that there may be future volatility in its gross margin related to price competition and continues to target the upper end of its previously stated target of 40 – 45% gross margin.
• Record Adjusted EBITDA⁽²⁾ of $7.1 million in the fourth quarter of 2022, with strong sequential growth of 66% over the prior quarter and year over year growth of 387% over the fourth quarter of 2021. This marks Decibel’s tenth quarter of consecutive quarterly positive adjusted EBITDA.
• Adjusted Net Income⁽²⁾ of $1.8 million in the fourth quarter of 2022, with a sequential decline of 40% over the prior quarter and a year over year improvement of $5.6 million over the fourth quarter of 2021. The fourth quarter was partially impacted by a write off of cultivation and extraction inventory of approximately $3.2 million. This marks Decibel’s third quarter of positive adjusted net income.
• Leverage: At the end of the fourth quarter of 2022, Decibel had a funded debt to trailing twelve month EBITDA of 2.57x and a funded debt to annualized EBITDA of 1.55x.

Operating Highlights

New Unique and Innovative Products

The Company launched a total of 13 new products in various provinces in the fourth quarter of 2022, including

• 5 General Admission SKU’s in vape and infused pre-rolls in distillate and live resin formats; and
• 8 Qwest SKU’s in dried flower, standard pre-rolls, and infused pre-rolls formats.

Summary Highlights

Link to Decibel’s Investor Presentation

Decibel’s audited financial statements for the year ending December 31, 2022 (“Financial Statements”) and related three and twelve month periods ending December 31, 2022 Management’s Discussion & Analysis (“MD&A”), are available under the Company’s profile at www.sedar.com. As of December 31, 2022, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, Saskatchewan. The Plant, Decibel’s extraction facility, in Calgary, Alberta, has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements

Non-GAAP Measures

This press release contains certain financial performance measures that are not recognized or defined under IFRS (termed “Non-GAAP Measures”). As a result, this data may not be comparable to data presented by other licensed producers and cannabis companies. For an explanation of these measures to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the discussion below. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company. Accordingly, these Non-GAAP Measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Non-GAAP Financial Measures

Adjusted EBITDA is a non-GAAP financial measure that is calculated as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. This non-GAAP financial measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

Adjusted Net Income is a non-GAAP financial measure that is calculated as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets and change in fair value of biological assets realized through inventory sold. Adjusted Earnings per Share is a non-GAAP financial measure that is calculated as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets and change in fair value of biological assets realized through inventory sold, divided by the weighted average common shares outstanding. This non-GAAP financial measures should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

Supplementary Financial Measures

Retail Sales is a supplementary financial measure that is intended to provide a more accurate depiction of the revenue earned by the Company’s retail operations. Inventory transferred directly from the Company’s wholesale operations to the Company’s retail operations is removed from Retail Revenue as presented in the Company’s Financial Statements.

Gross Sales of Flower is a supplementary financial measure intended to provide a more accurate depiction of gross revenue earned by the Company’s wholesale flower operations. Inventory transferred directly from the Company’s wholesale flower operations to the Company’s retail operations is added to Gross Wholesale Revenue of Flower as found in the Company’s Financial Statements to arrive at Gross Sales of Flower.

Net Sales of Flower is a supplementary financial measure intended to provide a more accurate depiction of net revenue earned by the Company’s wholesale flower operations. Excise taxes associated with flower sales are subtracted from Gross Sales of Flower to arrive at Net Sales of Flower.

Gross Sales of Extracts is a supplementary financial measure intended to provide a more accurate depiction of gross revenue earned by the Company’s wholesale extracts operations. Inventory transferred directly from the Company’s wholesale extracts operations to the Company’s retail operations is added to Gross Wholesale Revenue of Extracts as found in the Company’s Financial Statements to arrive at Gross Sales of Extracts.

Net Sales of Extracts is a supplementary financial measure intended to provide a more accurate depiction of net revenue earned by the Company’s wholesale extracts operations. Excise taxes associated with extracts sales are subtracted from Gross Sales of Extracts to arrive at Net Sales of Extracts.

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to 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 statements.

In this news release, forward-looking statements relate to, among other things: that the Company has strong momentum heading into 2023; expectations that demand for Decibel’s products will grow; the Company’s ability to meet consumer demand; Decibel’s expectations that it will build its position in Canada and turn leverage into international opportunities; anticipated growth in Decibel’s net revenue, growth in demand for Decibel’s products, and improvements made to Decibel’s operational capacity in the first quarter of 2023; anticipated future volatility in gross margin related to price competition; Decibel’s targeted gross margin; Decibel’s expectations that it will remain in compliance with its financial covenants for the remainder of its twelve-month forecast period; and the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Forward-looking statements and FOFI (as defined herein) are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to 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 statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; timing and completion of construction and expansion of the Company’s production facilities and retail locations; the risk that the Company may not be able to meet consumer demand; the risk that the Company may not improve its operational capacity when anticipated, or at all; the risk that Decibel may not remain in compliance with its financial covenants for the remainder of its twelve-month forecast period; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable.

With respect to forward-looking statements and FOFI contained in this press release, Decibel has made assumptions regarding, but not limited to: growth of the brand and recognition in Canada will lead to growth internationally; demand for Decibel‘s products; Decibel’s ability to realize operational efficiencies and effect certain cost saving measures (including in the impact thereof); Decibel’s ability to enter new markets and industry verticals; Decibel’s ability to attract, develop and retain key personnel; Decibel’s ability to raise additional capital and to execute on its expansion plans; the timelines for new product launches, Decibel’s ability to continue investing in infrastructure and implement scalable controls, systems and processes to support its growth; the impact of competition; the changes and trends in Decibel’s industry or the global economy; the Company’s ability to generate sufficient cash flow from operations and obtain financing, if needed, on acceptable terms or at all; the general economic, financial market, regulatory and political conditions in which the Company operates; the ability of the Company to ship its products and maintain supply chain stability; consumer interest in the Company’s products; anticipated and unanticipated costs; government regulation of the Company’s activities and products; the timely receipt of any required regulatory approvals; the Company’s ability to conduct operations in a safe, efficient and effective manner; the Company’s construction plans and timeframe for completion of such plans; and the changes in laws, rules, regulations, and global standards.

Any financial outlook or future oriented financial information (in each case “FOFI”) contained in this news release regarding prospective financial position, including, but not limited to: anticipated future volatility in gross margin; Decibel‘s targeted gross margin; and Decibel’s expectations that it will remain in compliance with its financial covenants for the remainder of its twelve-month forecast period, is based on reasonable assumptions about future events, including those described above, based on an assessment by management of the relevant information that is currently available. The actual results will likely vary from the amounts set forth herein and such variations may be material.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements and FOFI contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and FOFI included in this news release are made as of the date hereof and Decibel does not undertake any obligation to publicly update such forward-looking statements and FOFI to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

Preliminary Financial Information

The Company’s expectations for its Q1 2023 results, including net revenue growth in the quarter, are based on, among other things, the Company’s anticipated financial results for the three month period ended March 31, 2023. The Company‘s anticipated financial results are unaudited and preliminary estimates that: (i) represent the most current information available to management as of the date of hereof; (ii) are subject to completion of interim review procedures that could result in significant changes to the estimated amounts; and (iii) do not present all information necessary for an understanding of the Company’s financial condition as of, and the Company’s results of operations for, such periods. The anticipated financial results are subject to the same limitations and risks as discussed under “Forward Looking Statements” above. Accordingly, the Company’s anticipated financial results for such periods may change upon the completion and approval of the financial statements for such periods and the changes could be material.

Market, Independent Third Party and Industry Data

Certain market, independent third party and industry data contained in this news release is based upon information from government or other independent industry publications and reports or based on estimates derived from such publications and reports. Government and industry publications and reports generally indicate that they have obtained their information from sources believed to be reliable, but Decibel has not conducted its own independent verification of such information. This news release also includes certain data derived from independent third parties. While Decibel believes this data to be reliable, market and industry data is subject to variations and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey. Decibel has not independently verified any of the data from independent third party sources referred to in this news release or ascertained the underlying assumptions relied upon by such sources.

SOURCE Decibel Cannabis Company Inc.

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.

Fiscal 2022 Highlights

• Revenue up 177% to $10.1M from $3.6M in Fiscal 2021
• Gross margin of $4.1M or 41.1% before fair value adjustments.
• Decreased G&A expenses by $729k or 14%
• Increased total harvested dried biomass to 42,000 kg, from 38,000 kg in Fiscal 2021

VANCOUVER, British Columbia, April 03, 2023 (GLOBE NEWSWIRE) — Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) is pleased to report its financial results for the fourth quarter and fiscal year ended November 30, 2022 (“Q4’22” or “Fiscal 2022”). All amounts are expressed in Canadian dollars unless otherwise noted.

“Our investment in refinement technologies and expanded production capacity is playing a pivotal role in driving increased sales,” said Mark Aiken, Chief Executive Officer of Christina Lake Cannabis. “As a result of this increased capacity we have been able to diversify our product offering to better serve our customers’ needs. Through tightly managed customer engagements we have significantly increased our revenues.”

Mr. Aiken continued “The organization has been deeply focused on delivering strong results and cost of goods optimization. This attention has allowed CLC to reduce G&A by 14% or $729k. We continue to execute on strategic diversification opportunities addressing the headwinds within the industry. We are leveraging our technology, experience, and manufacturing capacity to bring turnkey formulations and products to market.   I look forward to providing a deeper dive on business operations and expanding upon our diversification strategy through our corporate update which will be made available on April 21st, 2023.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Revenue grew 177% to $10.1M from $3.6M in the prior year. Revenue growth was driven by the growing demand in our premium distillate, extended product offerings, and expanding customer base.

Gross Margin Before Fair Value Adjustments was 41% of revenue from sale of goods for the year ended November 30, 2022, compared with 61% in the comparative prior year. The Company continued to realize production efficiencies to combat price compression in the wholesale distillate market as production and sales continued to ramp up. This was offset by an expanded product mix, which includes various grades of premium distillate.

During the year the Company incurred an inventory write-down of $2.5M, compared with $3.9M in fiscal 2021. A change in market conditions resulting in the price compression of wholesale cannabis distillate, subsequent to year end, resulted in a change of estimated inventory valuation.

Total general & administrative (“G&A”) expenses declined by $729k or 14% in fiscal 2022 compared to fiscal 2021, driven by year-over-year reductions in corporate development, marketing, and share based compensation expenses. G&A decreased to 44% of revenue during the year, compared with 142% in fiscal 2021.

The fair value of the Class B preferred shares at the transaction date was $4,976,949. As noted previously the Company issued a promissory note in the amount of $2,000,000 bearing an interest rate of 8% per annum and 13,000,000 common shares as part of redemption and cancellation transaction of the Class B preferred shares. Following the transaction the Company recorded a gain on settlement in the amount of $296,416.

Net and comprehensive loss in fiscal 2022 was $(2.0M) which is a $5.1M decrease from fiscal 2021 loss of $(7.1M). The year-over-year improvement is primarily driven by an increase in revenue and reduction in G&A expenses and inventory write-down, which was offset by an increase in cost of goods sold.

Cash and Working Capital

As at November 30, 2022, the Company had working capital of $3,683,558 (November 30, 2021 – $2,033,054) which consisted of cash of $1,810,639 (November 30, 2021 – $1,046,916), receivables of $1,906,820 (November 30, 2021 – $1,147,341), prepaid expenses of $3,885 (November 30, 2021 – $122,755), inventory of $5,766,418 (November 30, 2021 – $7,153,378). Current liabilities, being accounts payable and accrued liabilities, and current portion of loan, and current portion of convertible debentures $5,832,954 (November 30, 2021 – $7,466,086).

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act. It has secured a standard cultivation license and corresponding processing amendment from Health Canada (March 2020 and August 2020, respectively) as well as a research and development license (early 2020). Christina Lake Cannabis’ facility consists of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site.  CLC focuses its production on creating high quality extracts and distillate for its B2B client base with proprietary strains specifically developed for outdoor cultivation to enhance extraction quality.

On behalf of Christina Lake Cannabis:

“Mark Aiken”
Mark Aiken, CEO

For more information about CLC, please visit: www.christinalakecannabis.com

Jennifer Smith
Investor Relations and Media Inquiries
investors@clcannabis.com
902-229-7265

THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER. This news release contains statements which constitute “forward-looking statements”, including the anticipated use of the proceeds of the Offering, statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The use of any of the words “anticipate,” “continue,” “estimate,” “expect,” “may,” “will,” “would,” “should,” “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on http://www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

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.

Toronto, Ontario, Oct. 28, 2022 (GLOBE NEWSWIRE) — Ayurcann Holdings Corp. (CSE: AYUR, OTCQB: AYURF, FSE: 3ZQ0) (“Ayurcann” or the “Company”), a leading Canadian cannabis extraction company specializing in the processing and co-manufacturing of pharma grade cannabis and hemp to produce various derivative cannabis 2.0 and 3.0 products in the medical and recreational market, is pleased to announce its financial and operational results for the year ended June 30, 2022, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company’s full set of consolidated financial statements for the years ended June 30, 2022 and 2021 and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.ayurcann.com and its profile page on SEDAR at www.sedar.com.

FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED JUNE 30, 2022

• Gross revenue increased to $11,081,731 for fiscal year ended June 30, 2022 (compared to $7,633,656 in 2021), representing an increase of 45.17%.
• Gross Margins based on Net revenues of 23.6%
• Cash on hand as of June 30, 2022, totalled $1,354,816 (compared to $725,016 as at June 30, 2021).
• Reported sales increased to $3,238,905 for the three months ended June 30, 2022 (compared to $2,659,087 for the three months ended June 30, 2021), representing an increase of 21.8%.

“We are thrilled to observe consistent growth in our revenue despite the retail price compression affecting the cannabis industry. Over the last year, several cannabis companies have experienced pressure on their margins due to retail price compression, while Ayurcann is proud to be one of the companies who has generated an increase in its revenues. The ability to transition away from a business-to-business to a more business-to-consumer focused company has enabled Ayurcann to enter multiple recreational markets in Canada over the past fiscal year. With over 2,500 products listed for sale throughout the country in the vape, concentrate, oil and flower segments (collectively, the “Product Listings”), the growth trajectory for our in-house brands should have a tremendous and positive impact on the future development of Ayurcann,” said Igal Sudman, Chief Executive Officer of Ayurcann.

OPERATIONAL HIGHLIGHTS FOR THE YEAR ENDED JUNE 30, 2022

• 2,500 Product Listings throughout New Brunswick, Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia;
• The Company’s top selling brands across the country are Fuego, Hustle & Shake (“H&S”), Joints and Bravo6;
• Acquired the H&S and Joints brands, with products now available in New Brunswick, Ontario, Alberta, Saskatchewan, and British Columbia;
• Ongoing purchase orders from provincial boards across the country, overseeing retail sales and distributions of cannabis in each Canadian province and territory, for Ayurcann products;
• Consistently offering new stock-keeping units (the “SKUs”) into the market, reflecting the reliability and value that Ayurcann brings to recreational cannabis in Canada.

“With the establishment of our Product Listings, and with an increase in production capacity, strategic partnerships and the ability to grow market share in the categories we entered, we are confident that we will continue securing additional SKUs and market share across the country, thereby helping grow our top line revenues,” further added Mr. Sudman.

SELECTED FINANCIAL INFORMATION FOR YEAR ENDED JUNE 30, 2022

(All amounts are expressed in Canadian dollars)

For further information, please contact:

Igal Sudman, Chairman and Chief Executive Officer
Ayurcann Holdings Corp.
Tel: 905-492-3322.
Email: [email protected]

Investor Relations:

Email: [email protected]

About Ayurcann:

Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada. Ayurcann is striving to become a partner of choice for leading Canadian cannabis brands by providing best-in-class, proprietary services including ethanol extraction, formulation, product development and custom manufacturing.
For more information about Ayurcann, please visit www.ayurcann.com and its profile page on SEDAR at www.sedar.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “strategy”, “expects” or “does not expect”, “intends”, “continues”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “will be taken”, “will launch” or “will be launching”, “will include”, “will allow”, “will be made” “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the growth trajectory of the Company’s in-house brands having an impact on the future development of Ayurcann; the Company securing additional product listings and market share across the country, allowing the Company to grow its revenue; and the ability of the Company to become the partner of choice for leading Canadian and international cannabis brands.

Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company will expand and be able to maintain production capacity; continued approval of the Company’s activities by the relevant governmental and regulatory authorities; the continued growth of the Company, including its in-house brands and top-line revenue; the Company’s successful implementation of its strategy to expand market share in cannabis industry; the Company’s continuing ability to meet the requirements necessary to remain listed on the Canadian Securities Exchange and alternative exchanges; the Company selling its products in compliance with applicable laws and regulations; the Company successfully distributing the new SKUs; the Company growing its exposure, consumer and retail partnerships and securing additional product listings and market share throughout the country; Ayurcann maintaining a continuous path of growth; the Company’s in-house brands having an impact on the future development of Ayurcann; the Company maintaining and creating new relationships with retail distributors; and the Company becoming the partner of choice for leading Canadian and international cannabis brands.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company’s inability to expand and/or maintain production capacity; the potential inability of the Company to continue as a going concern; the risks associated with the cannabis industry in general; increased competition in the cannabis extraction market; the potential future unviability of the cannabis market; risks associated with potential governmental and/or regulatory action with respect to the cannabis industry; the Company’s inability to obtain continued regulatory approvals; the Company’s inability to meet the requirements necessary to remain listed on the Canadian Securities Exchange and alternative exchanges; the Company’s inability to sell its cannabis flower products pursuant to applicable laws and regulations; the Company’s inability to grow and/or increase sales and/or in-house brands; the Company’s inability to secure funds for the integration, development and distribution of new and existing SKUs; the Company’s inability to secure additional product listings and grow its market share across the country; the Company’s inability to secure additional partnerships; and the Company’s inability to become the partner of choice for leading Canadian and international cannabis brands.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events, or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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.