Total Revenue Increased 30.7% to $41.7 Million

Gross Profit Increased 24.1% to $6.4 Million

North American Cannabis Vaping Hardware Revenue Increased 149% to
$19.5 Million  

LOS ANGELES, Feb. 20, 2024 /PRNewswire/ — Ispire Technology Inc. (“Ispire” or “the Company”) (NASDAQ: ISPR), a leader in vapor technology, providing high-quality, innovative products with first-class performance, today reported results for the fiscal second quarter, which ended December 31, 2023, and filed its quarterly report on Form 10-Q on February 20, 2024.

Fiscal Second Quarter 2024 Financial Results

• Revenue increased 30.7% to $41.7 million as compared to $31.9 million in the same period of 2023. Tobacco vaping products contributed $22.1 million and cannabis vaping products contributed $19.5 million to revenue during the fiscal second quarter 2024;
• Gross profit increased 24.1% to $6.4 million as compared to $5.1 million in the same period of 2023;
• Gross margin decreased to 15.3% as compared to 16.1% in the same period of 2023;
• Total operating expenses increased 114% to $10.3 million as compared to $4.8 million in the same period of 2023; and
• Net loss of $4.0 million as compared to net loss of $0.1 million in the same period of 2023.

Michael Wang, Co-Chief Executive Officer of Ispire commented, “This quarter proved to be quite pivotal for not only our product expansions but also our business operations. We commenced several strategic initiatives, including ISO and GMP certification for our Malaysian facility and a path to receive Pre-market Tobacco Product Application approval in the U.S. After seeing such remarkable growth trends related to our cannabis vaping hardware sales, we aim to intensify our presence and further expand our footprint in this domestic market.”

“As we further execute on our growth strategy, we continue to expand our footprint in existing and new markets, which helps to grow our diverse customer base. This quarter we launched a key celebrity partnership with Nigerian Afrobeats star, Burna Boy, highlighting our BRKFST-branded products and fortifying our global brand presence. We anticipate that our strategic initiatives this quarter will position Ispire to capitalize on emerging opportunities as well as drive sustainable and future growth across our key markets,” concluded Wang.

Daniel Machock, Chief Financial Officer of Ispire, added, “In the fiscal second quarter of 2024, Ispire’s key growth metrics highlighted rapid expansion for our cannabis vaping hardware business. Overall revenues increased 30% to $41.7 million for the fiscal second quarter while cannabis vaping products increased 149% to $19.5 million for the same period last year. This significant growth in cannabis vaping hardware revenues is a testament to our commitment to innovation and the immense potential of our industry. Looking ahead, we remain steadfast in our commitment to driving sustainable growth, maximizing shareholder value, and solidifying our position as a leader in the industry.”

Financial Results for the Three and Six-Month Periods Ended December 31, 2023

Revenue increased 30% to $41.7 million for the fiscal second quarter ended December 31, 2023, compared to $31.9 million for the second quarter of fiscal 2023. The increase in the second quarter of fiscal 2024, was primarily attributable to an increase in North American cannabis vaping hardware sales which increased 149% year over year from $7.8 million to $19.5 million.

For the six-month period ended December 31, 2023, Ispire reported revenue of $84.5 million, compared to $58.8 million during the same period last year, an increase of 43.7%. The increase in revenue was primarily attributable an increase in North American cannabis vaping hardware sales which increased 133% from $15.8 million for the first six-months of fiscal 2023 to $36.9 million for the first six-months of fiscal 2024.

Gross Profit increased by 24.1% to $6.4 million for the three-month period ended December 31, 2023, compared to $5.1 million in the second quarter of fiscal 2023. Gross Profit for the six-month period ended December 31, 2023, was $13.3 million, compared to $10.0 million for the same period in fiscal 2023.

Gross Margin for the three months ended December 31, 2023, was 15.3% compared to 16.1% for the same period in fiscal 2023. For the six-month period ended December 31, 2023, gross margin was 15.7%, compared to 16.9% during the same period in the prior fiscal year.

Total Operating Expenses increased by 114% to $10.3 million for the second quarter in fiscal 2024, compared to $4.8 million for the same period of fiscal 2023. This increase was primarily due to marketing expenses and working capital related to maintain our manufacturing plant in Malaysia and increased professional fees for expenses incurred as a public company. Total Operating Expenses for the six-months ended December 31, 2023, were $18.1 million as compared to $10.8 million in the same period in fiscal 2023.

Net loss was $4.0 million, or $(0.07) per share, for the second quarter of fiscal 2024, compared to a net loss of $130 thousand, or $(0.01) per share for the second quarter of fiscal 2023. For the first six-months of fiscal 2024, net loss was approximately $5.4 million, or $(0.10) per share, compared to a net loss of approximately $2.1 million, or $(0.04) per share for the first six-months of fiscal 2023.

As of December 31, 2023, Ispire had approximately $17.5 million of cash and cash equivalents. As of December 31, 2023, and June 30, 2023, we had working capital of $24.8 million and $28.8 million, respectively.

Fiscal Year 2024 Outlook

Ispire is providing the following outlook for the cannabis and tobacco vaping products for fiscal year 2024, which ends on June 30, 2024.  Revenue for cannabis vaping products for fiscal year 2024 is projected to be in the range of $80 million to $90 million, representing growth of 100% to 125% from fiscal year 2023. Revenue for tobacco vaping products for fiscal year 2024 is projected to be in the range of $95 million to $105 million, representing growth in the range of 33% to 47% from fiscal year 2023.

Conference Call

The Company will conduct a conference call at 8:00 a.m. Eastern time on Wednesday, February 21, 2024, to discuss the results.

Ispire management will host the conference call, followed by a question-and-answer period.

Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the “Ispire Technology Call.” An operator will register your name and organization.

This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1655325&tp_key=b746afb9b3

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available through 11:00 am ET on February 21, 2024, to March 6, 2024. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 13744317 to access the replay.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company’s operating subsidiaries own or license from a related party more than 200 patents received or filed globally. Ispire’s tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the United States, People’s Republic of China, and Russia) primarily through its distribution network. Ispire’s cannabis vaping hardware products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire currently sells its cannabis vaping hardware only in the United States, and it recently commenced marketing activities in Canada and Europe, primarily in the European Union.

Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, Linkedin, Pinterest, and YouTube. Any information contained on, or that can be accessed through, the Company’s website, any other website or any social media, is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s business strategies, the ability of the Company to market to the Ispire ONE, Ispire ONE’s success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONE and the success of their products on the markets; the Ispire ONE proving to be safe, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Ispire’s Form 10-K annual report for the year ended June 30, 2023 and any subsequent filings which Ispire makes with the Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

IR Contact:

For more information, kindly contact:
Investor Relations
Sherry Zheng
718.213.7386
ir@ispiretechnology.com

KCSA Strategic Communications
212.896.1233
ispire@kcsa.com

PR Contact:
Ellen Mellody
570.209.2947
EMellody@kcsa.com

See notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

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.

Overall Revenue Increased 59.1% to $42.9 Million; Gross Profit Increased 43.7% to $6.9 Million.

Revenue from cannabis vaping products up 116.8% to $17.3 Million

Revenue from tobacco vaping products up 34.8% to $25.5 Million.

LOS ANGELES, Nov. 14, 2023 /PRNewswire/ — Ispire Technology Inc. (“Ispire” or “the Company”) (NASDAQ: ISPR), a leader in vapor technology, providing high-quality, innovative products, announced today reported financial results for the fiscal first quarter 2024, which ended on September 30, 2023, and filed its quarterly report on Form 10-Q on November 14, 2023.

Fiscal First Quarter 2024 Financial Results

• Revenue increased 59.1% to $42.9 million as compared to $26.9 million in the same period of 2023. Tobacco vaping products contributed $25.5 million and cannabis vaping products contributed $17.3 million to revenue during the fiscal first quarter 2024;
• Gross profit increased 43.7% to $6.9 million as compared to $4.8 million in the same period of 2023;
• Gross margin decreased to 16.1% as compared to 17.8% in the same period of 2023;
• Total operating expenses increased 29.8% to $7.8 million as compared to $6.0 million in the same period of 2023; and
• Net loss of $1.4 million as compared to net loss of $2.0 million in the same period of 2023.

Michael Wang, Co-Chief Executive Officer of Ispire commented, “For the fiscal first quarter of 2024, we continued to deliver strong financial results as our overall revenues increased 59.1% year-over-year with cannabis and tobacco vaping product revenues increasing 116.8% and 34.8% as compared to the same periods the previous year. This increase reflects our strategic U.S. market expansion and the market’s warm reception to our best-in-class products. Our active presence at industry trade shows has been highlighted by the unveiling of our latest innovative product, the Ispire ONE which has transformed vaping experiences and set new standards in consumer safety and operational efficiency. Our business strategy has clearly manifested as we continue to redefine the vaping experience, consistently delivering high-quality and groundbreaking products that align with customer preferences.”

“We remain confident in our ability to maintain our position as the leading premier precision dosing technology company as we’ve not only secured our position in existing markets but have also made inroads into new geographies, adapting swiftly to increased market demands. The establishment of a new manufacturing facility in Malaysia marks a strategic step into the Southeast Asian market, signaling our readiness for scalable operations. As we progress through the fiscal year, we are on track to not only meet but also exceed our revenue projections for both cannabis and tobacco vaping products.” concluded Wang.

Daniel Machock, Chief Financial Officer of Ispire, added, “In the fiscal first quarter of 2024, Ispire’s revenue trajectory continued to ascend, with cannabis vaping products generating $17.3 million, up from $8.0 million for the same period last year, and tobacco vaping products revenues climbing to $25.5 million from $18.9 million for the same period last year. The continued successful execution of our business strategy has yielded fruitful results both financially and operationally that reflect our brand’s growing prominence as well as the strategic moves we’ve undertaken. As we continue to balance growth with operational efficiency, we remain committed to financial discipline while further driving shareholder value.”

Liquidity and Capital Resources

As of September 30, 2023, Ispire had cash and cash equivalents of $25.7 million and working capital of $27.6 million.

The Company believes that its current cash and cash flows provided by operating activities, and the net proceeds from the initial public offering will be sufficient to meet its working capital needs in the next 12 months.

Fiscal Year 2024 Outlook

Ispire is providing the following outlook for the cannabis and tobacco vaping products for fiscal year 2024, which ends on June 30, 2024.  Revenue for cannabis vaping products for fiscal year 2024 is projected at somewhere between $80 million and $90 million, representing growth between 100% and 125% from fiscal year 2023. Revenue for tobacco vaping products for fiscal year 2024 is projected at somewhere between $100 million and $110 million, representing growth between 33% and 47% from fiscal year 2023.

Conference Call

The Company will conduct a conference call at 8:00 a.m. Eastern time on Tuesday, November 14, 2023, to discuss the results.

Ispire management will host the conference call, followed by a question-and-answer period.

Date: Tuesday, November 14, 2023

Time: 8:00 a.m. Eastern time

Toll-free dial-in number:

United States: 1-888-346-8982

Mainland China: 4001-201203

Hong Kong: 800-905945

International: 1-412-902-4272

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=pzOaTzRt

Please call the conference call dial-in 5-10 minutes prior to the start time, and ask for the “Ispire Technology Call.” An operator will register your name and organization.

To be added to the Ispire Technology email distribution list, please email ispire@kcsa.com with ISPR in the subject line.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company’s operating subsidiaries own or license from a related party more than 200 patents received or filed globally. Ispire’s tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the United States, People’s Republic of China, and Russia) primarily through its distribution network. Ispire’s cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire currently sells its cannabis vaping hardware only in the United States, and it recently commenced marketing activities in Canada and Europe, primarily in the European Union.

Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, Linkedin, Pinterest, and YouTube. Any information contained on, or that can be accessed through, the Company’s website, any other website or any social media, is not a part of this press release.

Forward Looking Statements

 This press release and the conference call described in this press release contains and will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s ability to collect its accounts receivable in a timely manner, the Company’s business strategies, the ability of the Company to market to the Ispire ONE, Ispire ONE’s success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONE and the success of their products on the markets; the Ispire ONE proving to be safe, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Ispire’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023 and any subsequent filings which Ispire makes with the Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Investor Relations Contact:

Sherry Zheng

718.213.7386

ir@ispiretechnology.com

SOURCE Ispire Technology 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.

LAS VEGAS, NV / ACCESSWIRE / October 12, 2023 / CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH), (the ”Company” or ”CLS”), a diversified cannabis company operating as Cannabis Life Sciences, today announced its financial results for the fiscal quarter ended August 31, 2023 (“Q1 2024”). All amounts are expressed in U.S. dollars.

Q1 2024 Financial & Operational Highlights

• Net revenue for Q1 2024 was $5.1 million
  • Dispensary revenue accounted for 65% of total revenue at $3.3 million
  • Production revenue accounted for 35% of total revenue at $1.8 million
• Gross profit for Q1 2024 was $2.3 million, or 44% of net revenue
• Net loss attributable to CLS Holdings, Inc. for Q1 2024 was $464 thousand, a 60% improvement compared to the net loss of $1.1 million for Q1 2023
• EBITDA for Q1 2024 was $638 thousand, an increase of 70% compared to $374 thousand for Q1 2023
• Cash flow from operating activities for Q1 2024 was $783 thousand, an improvement of 154% when compared to the negative cash flow of $1.5 million for Q1 2023

Weathering the Market Waves

In a landscape marked by substantial market-wide downturn, it is noteworthy to recognize that CLS Holdings stands resilient. While the industry faces heavy challenges and a tough few quarters ahead, the Company has not seen a precipitous market drop and continues to manage and meet many of its goals and objectives.

Despite industry-wide downfalls, we continue to see a steady flow of customers at Oasis as well as persistent sales across our branded product divisions. It’s evident that consumer spending patterns have evolved. Covid funds have ended, and inflation is rising- it’s no secret that consumers have less money to spend. But people still want to feel good; people still need their medicine,” said Andrew Glashow, CEO of CLS Holdings. “Instead of buying fewer items, people are buying just as many but are now gravitating towards cheaper options. We believe factors such as our new VIP loyalty program, marketing initiatives, and connection to the community have allowed us to retain customers and continue to offer them affordable options.”

Fostering Growth Through Strategic Renovation

In the fiscal quarter ended August 31, 2023, the Company comprehensively evaluated operations, sales and marketing strategies, allowing it to evolve its formulations and processes to remain ahead of the competition.

CLS Holdings’ small size, encompassing a single retail store and manufacturing facility, affords it the advantage of making nimble adjustments that have a significant impact on operations and cash flow despite an unrelenting competitive and regulatory landscape.

The Fruit of the Initiatives

The investments and strategic refinements undertaken show tangible results indicative of a forward trajectory. Though CLS Holdings revenue is down 15% over the past year, the Company is still up 40-50% since the Covid-19 pandemic. Implementations like the VIP loyalty program, powered by Springbig, and Pluggi, an AI-powered chatbot product recommender, have shown promising increases in basket size and spending.

The average price of products added as a result of Pluggi’s recommendation is $32, making for a 28% increase in the average shopping cart value at Oasis, with approximate basket spend per transaction reaching an impressive $45. Since implementing Pluggi, Oasis has seen approximately a $17,000 monthly increase in revenue against a relatively low annual cost of $2,500. Further, the VIP loyalty program has seen hundreds of sign-ups in just a few months, increasing cash flow, as well as customer satisfaction and retention.

CLS continues on its track of paying off 150K – 200K of debt per month with the goal of reaching profitability in the 2024 fiscal year. With the restructuring of our debt, the Company will save 600K in annual interest payments over the next 9 months and is on pace to be substantially debt free by the end of calendar year 2024.

Management Commentary

“In an industry that never lets up, we acknowledge that while we may be down 15% over the past year, we are proud of our achievements to date. With a small and nimble approach, we have and continue to pivot to navigate the market’s current realities. We remain resolute in our pursuit of continuous growth and recognize that the support from our loyal customers and dedicated team is what keeps Oasis at the forefront of Nevada’s cannabis industry,” said Andrew Glashow, Chairman and CEO.

“We anticipate that, just like those who opt for more budget-friendly options during economic downturns, our customers continue to find solace in our range of offerings, including many affordable choices, like our own City Trees products. We continue to focus on areas of strength and asset-light opportunities while cutting ties with underperforming or non-strategic pursuits,” Glashow adds.

Outlook

The Nevada market alone is expected to grow 33% between 2020 and 2025, reaching $1 billion in sales by 2025. While nearby markets like Arizona and New Mexico are expected to hit $3.1 billion in sales by 2025 collectively. The Company is exploring asset-light approaches in these attractive markets, including potential joint ventures, brand licensing agreements, and wholesale distribution. Further, the Company has obtained a prospective consumption lounge license with plans to open the space in 2024 assuming final licensing approval.

CLS Holdings is strategically positioned for sustainable growth and reaching its planned goals.

Q1 FY2024 Financial Results

The Company’s consolidated financial statements, as well as its accompanying management discussion and analysis (“MD&A”) have been included in its Quarterly Report on Form 10-Q filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to the Company’s MD&A for additional detail and discussion on the Company’s results from operations. Financial results are also available on the Company’s website (https://www.clsholdingsinc.com/investors).

About CLS Holdings USA, Inc.

CLS Holdings USA, Inc. (CLSH) is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. CLS stands for “Cannabis Life Sciences,” in recognition of the Company’s proprietary method of extracting various cannabinoids from the cannabis plant and converting them into products with a higher level of quality and consistency. The Company’s business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services. https://www.clsholdingsinc.com. Twitter: @CLSHoldingsUSA

Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top cannabis retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas, in combination with its delivery service to residents, allows it to efficiently serve both locals and tourists in the Las Vegas area. In February 2019, it was named “Best Dispensary for Pot Pros” by Desert Companion Magazine. In August 2017, Oasis commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products.http://oasiscannabis.com

Founded in 2017, City Trees is a Nevada-based cannabis cultivation, production and distribution company that offers a wide variety of products with consistent results. City Trees products are available in numerous dispensaries throughout the state of Nevada.https://citytrees.com

Forward-Looking Statements

This press release contains certain ”forward-looking information” within the meaning of applicable Canadian securities legislation and ”forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the ”forward- looking statements”). These statements relate to, among other things, the impact of the COVID-19 virus on our business, the results of our initiatives to retain our employees and strengthen our relationships with our customers and community during the pandemic, the effect of our initiatives to expand market share and achieve growth, the expected development of our business and joint ventures, results of operations and financial performance, future liquidity, working capital and capital requirements, the effects of the additional dilution in our common stock that may occur as a result of the amendments to our convertible debentures, and anticipated future events. The continued spread of COVID-19 could have, and in some cases already has had, an adverse impact on our business, operations and financial results, including through disruptions in our cultivation and processing activities, supply chains and sales channels, and retail dispensary operations as well as a deterioration of general economic conditions including a possible national or global recession. In some cases, you can identify forward looking statements by terminology such as ”may,” ”might,” ”will,” ”should,” ”intends,” ”expects,” ”plans,” ”goals,” ”projects,” ”anticipates,” ”believes,” ”estimates,” ”predicts,” ”potential,” or ”continue” or the negative of these terms or other comparable terminology. These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. We cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered together with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events. See CLS Holdings USA filings with the SEC and on its SEDAR profile at www.sedar.com for additional details.

Contact Information:

Corporate:

Andrew Glashow, Chairman and CEO | 888-260-7775

SOURCE: CLS Holdings USA, 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.

Revenue Increased 26.9% to $24.1 Million; Gross Profit Increased 51.9% to $4.5 Million; Net Loss of $3.3 Million for the Quarter, up from a $1.0 Million Net Loss in the Third Quarter 2022

Issues Fourth Quarter 2023 Outlook for Cannabis Vaping Products, Representing Growth of 58% to 98%

LOS ANGELES, May 16, 2023 (GLOBE NEWSWIRE) — Ispire Technology Inc. (NASDAQ: ISPR) (“Ispire” or the “Company”), a leader in vapor technology, providing high-quality, innovative products with first-class performance, today reported financial results for the third quarter of 2023, which ended on March 31, 2023, and filed its quarterly report on Form 10-Q on May 15, 2023. The Company’s fiscal year is the year ending on June 30, 2023.

“We are very pleased with our financial results during our third quarter. Revenue growth was a robust 26.9% while gross profit grew 51.9% due to a favorable product mix and the realization of economies of scale on higher sales volume. We look forward to a strong finish to the fiscal year with a projected sequential revenue increase for cannabis vaping products of between 58% and 98% during our fourth quarter,” said Michael Wang, CFO of Ispire.

He added, “As we begin our journey as a public company, we are focused on a multi-prong strategy directed at increasing sales of our e-cigarette vaporizer technology products and developing our cannabis vaporizer technology products with a focus on both medical and recreational usages. We firmly believe that Ispire offers the very best products in the marketplace and has rightfully earned an enviable reputation among its customers. We continue to seek to remain at the forefront of technology so that we can adapt to emerging trends and thereby enhance value for all of our shareholders.”

Third Quarter 2023 Highlights

• Revenue increased 26.9% to $24.1 million as compared to $19.0 million in the same period of 2022. Tobacco vaping products contributed $16.5 million and cannabis vaping products contributed $7.6 million to revenue during the third quarter 2023;
• Gross profit increased 51.9% to $4.5 million as compared to $3.0 million in the same period of 2022;
• Gross margin increased to 18.7% as compared to 15.7% in the same period of 2022.
• Total operating expenses increased 106.2% to $8.0 million as compared to $3.9 million in the same period of 2022; and
• Net loss of $3.1 million as compared to net loss of $1.0 million in the same period of 2022.

Liquidity and Capital Resources

As of March 31, 2023, and prior to the closing of its initial public offering, Ispire had cash and cash equivalents of $24.0 million and working capital of $5.2 million.

The Company believes that its current cash and cash flows provided by operating activities, and the net proceeds from the initial public offering will be sufficient to meet its working capital needs in the next 12 months.

Initial Public Offering

In April 2023, Ispire closed on its initial public offering of 3,105,000 shares of common stock, which included the 405,000 shares issued pursuant to the full exercise by the underwriters of their overallotment option, at the initial public offering price of $7.00 per share. The common stock began trading on the NASDAQ Capital Market on April 4, 2023.

Including proceeds from the sale of the additional shares, the aggregate gross proceeds from the offering were approximately $21.7 million, less underwriting discounts and non-accountable expense allowance of approximately $1.7 million, and other expenses of approximately $1.5 million, resulting in net proceeds of $18.5 million.

Net proceeds from the initial public offering are being used for:

• Approximately 35% to develop manufacturing operations in Vietnam and the United States;
• Approximately 25% for research and development activities, which include efforts to develop new products and new vaping technology;
• Approximately 20% for the marketing and promotion of the Company’s branded products; and
• The balance of approximately 20% for general administration and working capital.

Outlook

Ispire is providing the following outlook for the cannabis vaping products for the fourth quarter 2023, which ends on June 30, 2023. Ispire commenced marketing cannabis vaping products in mid 2020, and revenue from cannabis vaping products was $7.6 million for the third quarter of 2023. Revenue for cannabis vaping products for the fourth quarter is projected at $12 million to $15 million, representing growth of 58% to 98% from the third quarter 2023.

About Ispire Technology Inc.

Ispire is engaged in the R&D, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The Company has or licenses from a related party more than 200 invention/design patents received or filed globally. Ispire’s tobacco vaping products are marketed under the Aspire brand name and are sold worldwide (except in the People’s Republic of China and Russia) primarily through its distribution network. Ispire’s cannabis vaping products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire currently sells its cannabis vaping hardware only in the United States, and it recently commenced marketing activities in Canada and Europe, primarily in the European Union.

Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, Linkedin, Pinterest, and YouTube. Any information contained on, or that can be accessed through, the Company’s website, any other website or any social media, is not a part of this press release.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words “expect,” “believe,” “estimate,” “intend,” “plan,” “anticipate,” “may,” “should,” “strategy,” “future,” “will,” “project,” “potential” and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, but are not limited to Ispire’s ability to generate the forecast revenue; Ispire’s ability to develop and market new products; the effects of regulations relating to the marketing and sale of vaping products in the United States and other countries; the expected growth of, and trends in, the markets for our products and services in the markets in which jurisdictions that we sell our products;; Ispire’s ability to establish and operate manufacturing facilities in Vietnam and Los Angeles;; and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Special Note Regarding Forward-Looking Statements” and the additional risk described in Ispire’s prospectus dated April 3, 2023 and in Management’s Discussion of Financial Condition and Results of Operations in Ispire’s Form 10-Q quarterly report for the quarter ended March 31, 2023.

You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the prospectus relate only to events or information as of the date on which the statements are made in the prospectus. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Investor Relations Contact:

Raphael Gross
203.682.8253
ir@ispiretechnology.com

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.

• Flora generated $20.1 million in revenue in Q1 2023, a 307% increase year-over-year.
• Gross profit for Q1 2023 increased 105% year-over-year, to $5.5 million.
• Posting a net loss of $3.9 million for Q1 2023 (decreased from Q1 2022). New leadership plans to further reduce expenses and focus on organic revenue growth.

FORT LAUDERDALE, Fla., May 15, 2023–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a global cultivator, manufacturer, and distributor of cannabis products and brands, reported today its financial and operating results for the quarter ended March 31, 2023. All financial information is provided in U.S. dollars unless indicated otherwise.

“As I take the reins of the organization, I am pleased to share the results of the first quarter of 2023, which included increased revenue generation for the Company,” said Hussein Rakine, newly appointed CEO of Flora. “The first quarter was focused on strengthening our operational performance, focusing on financial discipline, and optimizing the integrations of all our M&A transactions. Our House of Brands continued to be the primary revenue-generating pillar, posting sequential growth and steady margins. Our Commercial and Wholesale division was positively impacted by the addition of our German distribution business while our pharmaceutical initiatives continued to progress.”

Rakine continued, “However, the first quarter was not without its challenges which included impediments in our ability to export cannabis from Cosechemos, delays in the realization of operating expense reductions, and the prior period’s M&A-related transaction costs and liabilities, all affecting both the Company’s liquidity position and ability to fully realize our strategic plan for the quarter.

With respect to the challenges in exporting cannabis, we did not have the inventory of premium cannabis material required for the fulfillment of pending purchase orders and purchase intent notices in the first quarter. In addition, the export process from Colombia has proven to take longer and operate with less consistency than we had anticipated. Additionally, despite implementing various cost-saving initiatives to lower operating expenses, the Company has not yet achieved its ultimate organization-wide cost-reduction goals. To address this challenge, we will continue exploring various strategies to reduce operating costs.”

Rakine noted, “If we are not successful in meeting our business plans we may continue to face cash flow deficiencies. As a result, we may explore debt, equity financing or strategic alternatives to fund continued operations.

My priority is to further optimize the organization, reduce spend and focus on organic growth in revenue areas which offer the highest margin contribution and return on investment. I look forward to sharing our progress in the coming months, as we seek to chart the path to unlock the most shareholder value possible. I would like to thank the Flora team for their hard work and for welcoming me into my new role.”

Q1 2023 Financial and Operational Summary

• 1Q2023 revenue of $20.1 million, representing a 307% increase year-over-year and the highest revenue-generating quarter in the Company’s history.
• Expanding revenue generation in the quarter and for the House of Brands segment, which contributed $14.2 million of the total revenue.
• The Commercial and Wholesale segment delivered nearly $8.0 million in revenue, driven by the German-based pharmaceutical distribution subsidiary.
• Gross profit for 1Q2023 increased by 105% year-over-year to $5.5 million.
• Gross margin was 27%, a decrease from 54% in 1Q2022. This expected reduction was primarily driven by the contribution of lower-margin sales in the German pharmaceutical distribution subsidiary.
• Adjusted EBITDA loss for 1Q2023 was $1.4 million, compared to a loss of $3.4 million in 1Q2022.
• Adjusted EBITDA margin for 1Q2023 improved to -7% from -69% in 1Q2022. This improvement is in line with our expectations for the quarter.
• Net loss for the period was $3.9 million, as compared to $7.6 million for Q12022, and net loss margin for Q12023 improved to -19% from -154% in Q12022.
• Operating expenses for Q12023 were $8.6 million, a 17% decrease year-over-year.
• As a percentage of sales, operating expenses for 1Q2023 decreased to 43% from 209% in 1Q2022.
• As of March 31, 2023, the Company had approximately $5.3 million in cash and cash equivalents as compared to $9.5 million as of December 31, 2022.
• Delays with revenue capture from Cosechemos, challenges in the realization of overhead reductions, and acquisition-related costs and liabilities continue to be the primary contributors to the Company’s liquidity position.

About Flora Growth Corp.

Flora Growth Corp. is a global cannabis company dedicated to bringing the benefits of cannabis to people worldwide. Our commitment is to create, master and connect the international cannabis supply chain by setting the standard for world-class cultivation and manufacturing, thoughtful brand development, and rigorous research and development of medical-grade cannabis products that meet the highest standards of quality, safety, and efficacy. Our mission is to create a world where the benefits of cannabis are accessible to everyone, and we are working toward that goal by becoming a leading importer and exporter of cannabis to meet demand in every corner of the market. Visit www.floragrowth.com or follow @floragrowthcorp on social media for more information.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains ‘‘forward-looking statements,’’ as defined by federal securities laws. Forward-looking statements reflect Flora’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in Flora’s Annual Report on Form 10-K, previously filed with the SEC on March 31, 2023, as amended April 28, 2023, as such factors may be updated from time to time in Flora’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora’s filings with the SEC. While forward-looking statements reflect Flora’s good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Flora (or to third parties making the forward-looking statements).

About non–U.S. GAAP measures

Adjusted EBITDA is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA as total net loss, plus (minus) income taxes (benefit), plus (minus) interest expense (income), plus depreciation and amortization, plus (minus) non-operating expense (income), plus share based compensation expense, plus goodwill and other asset impairment charges, plus (minus) unrealized loss (gains) from changes in fair value, plus charges related to the flow-through of inventory step-up on business combinations, plus other acquisition and transaction costs. Management believes that Adjusted EBITDA provides meaningful and useful financial information as this measure demonstrates the operating performance of the business.

Adjusted EBITDA margin % is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA margin % as Adjusted EBITDA, as described above, divided by revenue for the period.

For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures, please see Table 4 under “Reconciliation of GAAP to non-U.S. GAAP financial results” included at the end of this release.

Table 1. Condensed Interim Consolidated Statements of Financial Position

Table 2. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

Table 3. Condensed Interim Statement of Cash Flows

Table 4. Reconciliation of GAAP to non-U.S. GAAP financial results

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the three months ended March 31, 2023 and 2022 is presented in the table below:

View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005721/en/

Contacts

Investor Relations:
Investor Relations
ir@floragrowth.com

Public Relations:
Cassandra Dowell
+1 (858) 221-8001
flora@cmwmedia.com

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.

Edmonton, Alberta–(Newsfile Corp. – March 22, 2023) – Radient Technologies Inc. (TSXV: RTI) (“Radient” or the “Company”), a commercial manufacturer of diverse, novel, and high-quality cannabis extracts and packaged products, reports its financial results for the quarter ended December 31, 2022.

Recent key highlights:

• Revenue for the quarter ended December 31, 2022 was $1,029,019, which compares to $1,576,616 in the same period in the prior year.
• Gross profit for the quarter ended December 31, 2022 was $272,309, which compares to $233,836 in the same period in the prior year.
• Operating expenses for the quarter ended December 31, 2022, were $1,308,097, which compares to $2,551,342 in the same period in the prior year.
• The Company has closed the pre-rolls program which was not profitable and intends to focus on the Company’s TRX and HighGrade hydrocarbon concentrate product lines.
• Sales of HighGrade hydrocarbon concentrates continue to improve, and the Company is receiving repeat-customer orders and positive product reviews.
• The company’s cannabis licence under Excise Tax, 2021 was renewed until June 7, 2023.
• On August 26, 2022, the Company received a demand notice from its secured lender for approximately $10.5 million plus accrued costs and interest. On February 8, 2023, the secured lender obtained a redemption order from the Court to list for sale the mortgaged property under certain conditions. On March 21, 2023, the secured lender was granted a Limited Receivership Order to sell equipment not required for operations.
• The Company is pursuing avenues to raise sufficient working capital and to restructure its debt to allow the Company to operate as a going concern but cannot assure it will be able to do so.

Management Commentary

The TRX acquisition, together with the Company’s exclusive licensing and extraction agreement with HighGrade Supply (“HighGrade”), has allowed the Company to produce what we believe to be some of the highest quality cannabis 2.0 products available in Canada, including distillates and isolates of products including THCa Crystalline, Delta 8 THC, CBG, CBN and hydrocarbon products such as High Cannabinoid Full Spectrum Extracts (HCFSE), High Terpene Full Spectrum Extracts (HTFSE), Crumble, Shatter, Live Resin, Budder, Terp Diamonds and more. These premium hydrocarbon products are sold through provincially licensed retailers in eleven Canadian provinces and territories.

The Company expects sales of hydrocarbon products to continue but requires sufficient working capital to facilitate fulfilling product purchase orders and growth.

The Company is encountering difficulty in meeting financial obligations as they become due. The continuing operations of the Company are dependent upon funding provided by investors and realizing profits from products being commercialized. The Company’s efforts are focused on financing its future requirements through a combination of debt and/or equity issuances. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms. This uncertainty casts doubt about the ability of the Company to continue as a going concern. The company is currently examining all restructuring options.

The interim condensed consolidated financial statements do not include any adjustments to the carrying value or presentation of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Loan Facility Demand

As previously announced, Moskowitz Capital Mortgage Fund II Inc. (“Moskowitz”) issued a demand notice on August 26, 2022, to the Company for payment of approximately $10.5 million, plus accrued costs and additional interest to the date of payment pursuant to the terms of a secured loan facility (the “Facility”) guaranteed by the Company. The Facility is secured by a first priority mortgage on the land and buildings located at 4035, 4029, and 4025 101 St. N.W., Edmonton, Alberta, as well as all of the Company’s present and after acquired personal property. On February 8, 2023, Moskowitz obtained a redemption order from the Court to list for sale the mortgaged property under certain conditions. On March 21, 2023, Moskowitz was granted a Limited Receivership Order to sell equipment not required for operations. For more information about the Facility, please see Radient’s press release dated April 4, 2022, which is available under the Company’s SEDAR profile at www.sedar.com.

Complete details of the Company’s financial and operating results for the quarter ended December 31, 2022 are available under the Company’s profile at www.sedar.com.

About Radient

Radient Technologies is a commercial manufacturer of diverse, novel and high-quality cannabis extracts and packaged products. Radient develops specialty products and ingredients that contain a broad range of cannabinoid and terpene profiles while meeting the highest standards of quality and safety. Radient is focused on innovation with expertise in formulations and technologies offering unique solutions in the cannabis space. RadientInc.com

Contact Information:

Steven Splinter, Interim CEO & Director
ssplinter@radientinc.com
Ph: 780 465 1318

Forward-Looking Information:

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations and cannabis product offerings and the Company’s ability to raise sufficient working capital to allow the Company to satisfy its outstanding purchase orders and operate as a going concern. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; risks associated with operation in the cannabis sector; and other risks inherent in the cannabis industry. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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.

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, February 28, 2023–(BUSINESS WIRE)–Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company“), today announced its financial results as at and for the three- and twelve-month periods ended October 31, 2022. All figures are in Canadian dollars unless otherwise noted.

“We are very pleased to have achieved another quarter of top line revenue growth that signals the success of our products in market, and with year-over-year revenue growth of 125% we are demonstrating our ability to execute a sustainable growth story. We saw significant growth in gross margins year over year despite the challenging regulatory environment within the cannabis industry. The market continues to be burdened by overcapacity, lack of tax reform and regulation constraints, however we have continued to grow through innovative product launches as well as new brand introduction,” said David Schwede, CEO of Heritage. “In particular we remain at the forefront of innovation with our newly launched ‘Thrifty’ brand and expect a similar market response to the wildly successful ‘RAD’ brand we launched in 2021. Our strength in the preroll and vape & concentrate categories is a testament to both our ability to be nimble in the market while continuing to produce quality products in a crowded market. Our U.S. ventures have successfully launched, and already operating on a cashflow positive basis. We are looking forward to continuing to build on the success of 2022 in 2023 and are exploring new revenue channels both in the U.S and internationally.”

Selected Financial Highlights

Selected financial highlights for the three- and twelve-month periods ended October 31, 2022 and 2021 include the following:

2022 Financial Highlights

• The Company reported gross revenue of $11,148,059 for the three months ended October 31, 2022, an increase of $4,015,117 compared to gross revenue of $7,132,942 for the three months ended October 31, 2021, representing an increase of 56%. The growth was driven by continued strength in the vape and concentrate category which increased 37%. As the Company continued to penetrate the flower market, its pre-roll and infused offerings have continued to grow especially since the Canadian marketplace remains primarily focused on flower products.

• For the year ended October 31, 2022, the Company recorded gross revenue of $41,996,297 an increase of $23,319,339 compared to gross revenue of $18,676,958 for the year ended October 31, 2021, representing an increase of 125%. The increase in gross revenue was the result of the Company’s continued strong listing demand particularly for its flower products which grew over 2000% year over year.

• Cost of sales for the three months ended October 31, 2022 was $7,611,993, an increase of $282,339 compared to $7,329,654 for the three months ended October 31, 2021. Cost of sales, decreased on a percentage of sales basis, as a result of operational efficiencies which increased capacity output, a reduction in outsourced product costs as a result of internalizing manufacturing that was previously outsourced and decreasing the reliance of external oil to offset the internal production scale up.

• Cost of sales for the year ended October 31, 2022 was $21,599,867, an increase of $8,106,870, compared to $13,492,997 for the year ended October 31, 2021. Cost of sales decreased on percentage of gross revenue as a resulting from increased operational efficiencies and significantly less reliance on third party manufacturers.

• Gross margin for the three months ended October 31, 2022 was $426,112 compared to gross margin of $(2,680,629) for the three months ended October 31, 2021. The increase of $3,106,741 was primarily a result of increased sales activity, greater facility productivity, a lower excise percentage and end of year re-classifications. Regulatory taxes continue to be one of the largest expenses of the business.

• Gross margin for the year ended October 31, 2022 was $7,966,518 compared to gross margin of $566,133 for the year ended October 31, 2021. The increase of $7,400,385 was a result of increased sales activity as highlighted in the table above combined with improved operational efficiencies and less third party reliance which were partially offset by a higher excise percentage, which increased by almost 500bps, from the prior period driven by the production of higher THC products as well as increased sales in provinces with higher tax rates.

• For the three months ended October 31, 2022, the Company recorded a net comprehensive loss of $26,895,045 or $0.03 loss per share compared to a comprehensive loss of $42,685,990 or $0.01 loss per share for the three months ended October 31, 2021. The improvement over the prior period was due to the gross margin gains noted above and the cost management in general and administrative expenses which was partially offset by the intangible asset and goodwill impairment.

• For the year ended October 31, 2022, the Company recorded a comprehensive loss of $23,937,773 or $0.03 loss per share compared to a comprehensive loss of $57,685,532 or $0.08 loss per share for the year ended October 31, 2021. The decrease in loss was primarily attributable to a lower impairment of intangible assets and goodwill of $21,215,000 for the year ended October 31, 2022 as compared to $36,337,826 for the year ended October 31, 2021, and an unrealized gain on contingent consideration payable of $9,137,267 for the year ended October 31, 2022 as compared to an unrealized loss of $3,514,865 in 2021.

Q4 2022 Growth, Operational, and Corporate Highlights

• On August 8, 2022, Heritage announced a relationship with Harvest Care Medical, LLC, (“Harvest Care”), a leading grower, processor, and provider of top-quality medical cannabis products in the state of West Virginia, with ten dispensary licenses of which two are currently in operation. Harvest Care was granted one of ten cultivation licenses last year and will contribute the use of the license to the relationship. Similar to Heritage’s relationship in Missouri, under the agreement Heritage will supply production equipment to Harvest Care as well as provide training and supervision of staff on the proprietary methods of extraction and manufacturing of Heritage developed and branded products.

  Subsequently on October 11, 2022, Heritage announced the commencement of operations in the state of West Virginia after Harvest Care received its processing license from the West Virginia Office of Medical Cannabis. Initial production on vape products and concentrates commenced in the State shortly thereafter. This milestone marks Heritage’s second U.S. state where it is operating, and with additional states on the horizon, the U.S. strategy is gaining traction and taking shape as the U.S. moves closer to decriminalizing cannabis.

• On September 9, 2022, Heritage announced that it changed its auditors from Davidson & Company LLP (“Former Auditor”) to Welch LLP (“Successor Auditor”). At the request of the Company, the Former Auditor resigned as the auditor of the Company effective September 8, 2022 and the Board appointed the Successor Auditor as the Company’s Auditor effective as of September 9, 2022. There were no reservations or modified opinions in the Former Auditor’s reports on the Company’s financial statements during the period that the Former Auditor acted as the Company’s auditor. In addition, there are no reportable events, including disagreements, consultations or unresolved issues (as defined in National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”)) between the Company and the Former Auditor.
• On September 29, 2022, Heritage announced that it entered into a second loan amending agreement (the “Second Amending Agreement”) to an original loan agreement dated March 31, 2021, as amended October 6, 2021 with BJK Holdings Ltd. (“BJK”) in the total amount of $19,760,000 across four facilities (collectively the “Loan”). As a result of the Second Amending Agreement, the maturity date on the Loan has been extended to November 30th, 2024 (the “Maturity Date”), and an additional loan facility in the amount of $4,985,000 has been extended to the Company, bringing the total amount of proceeds that the Company has access to through the Loan to $19,760,000. A one-time loan amendment fee of $985,000 was paid to BJK on September 29, 2022.

  In connection with the Loan, Heritage issued a new warrant certificate to BJK on September 29, 2022, entitling BJK to subscribe for and purchase up to 50,000,000 common shares in the capital of Heritage at an exercise price of $0.10 per common share (the “Additional Warrants”). The Additional Warrants have an expiry date of February 28, 2025. Heritage has also agreed to amend an existing warrant certificate held by BJK dated October 6, 2021, which entitled BJK to subscribe for and purchase up to 10,000,000 common shares in the capital of Heritage at an exercise price of $0.25 per share (the “Existing Warrants”). Effective September 29, 2022, the Company amended the Existing Warrants so that the expiry date for BJK to exercise the Existing Warrants is extended from October 8, 2023 until February 28, 2026.

• On October 3, 2022, Heritage announced the commencement of operations in the state of Missouri after Como Health LLC, doing business as 3Fifteen Primo Cannabis (“3Fifteen”), received an Approval to Operate from the Missouri Section for Medical Marijuana Regulation. Initial production on vape products, concentrates, and pre-rolls has already commenced in the State.
• On October 4, 2022, Heritage announced the launch of RAD Razzlers, a cannabis gummy that marks the entry into a new product category for Heritage. Following on the immense popularity of other cannabis products sold across the country under the RAD brand, RAD Razzlers are a new addition to the edibles category and offer unique and popular flavour profiles sought after by cannabis consumers, including Cousin Eddies Eggnog which will be a limited edition flavour offered only during the holidays. RAD Razzlers will initially be offered in packages containing a total of 10 mg of THC, with each gummy containing 2.5 mg of THC.
• On September 15, 2022, Heritage acquired the remaining 25% interest in Heritage West and now owns 100% of the issued and outstanding shares in the capital of Heritage West, a holder of various Health Canada cannabis licenses, through a share cancellation acquisition with Estek Ventures Corp. As consideration for the cancellation of 500 Class A Voting Common Shares and 400,000 Class G Non-Voting Preferred Shares in the capital of Heritage West, the Company has issued Estek Ventures Corp. 2,000,000 Common Shares plus an additional CAD$50,000 in cash.
• On September 16, 2022, Heritage entered into a settlement agreement with the original shareholders of Purefarma Solutions Inc. (the “Original Purefarma Shareholders”) to settle all outstanding obligations of Heritage to the Original Purefarma Shareholders pursuant to the terms of a share exchange agreement and share purchase agreement each dated December 7, 2018. In satisfaction of all claims related to earn-out share obligations and contingent cash payment obligations, the Original Purefarma Shareholders directed Heritage to issue 14,728,762 Common Shares to its corporate shareholder, 1187940 B.C. Ltd.

Financial Statements

The consolidated financial statements of the Company as at and for the three- and twelve-month periods ended October 31, 2022, and accompanying management’s discussion and analysis have been filed with the securities regulators and are available on SEDAR at www.sedar.com under the Company’s issuer profile.

About Heritage Cannabis Holdings Corp.

Heritage Cannabis is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in Canada and the U.S., operating under two licensed manufacturing facilities in Canada. The company has an extensive portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, Thrifty, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.

ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.

“David Schwede”
David Schwede
CEO

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, assumptions related to cash flow and capital resources, and expectations related to the supply and manufacturing agreements, the intended expansion of the Company, and partnerships and Joint Venture Partnerships.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading “Risks and Uncertainties” in the Company’s annual management discussion and analysis for the year ended October 31, 2022, and dated February 28, 2023. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230228006468/en/

Contacts

Kelly Castledine
Tel: 647-660-2560
kcastledine@heritagecann.com

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, Feb. 27, 2023 (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 recreational market, is pleased to announce its financial and operational results for the three-months ended December 31, 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 three-months ended December 31, 2022 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 THREE-MONTHS ENDED DECEMBER 31, 2022

• Gross revenue increased to $4,408,997 for the period (compared to $3,211,244 for the same period last year), representing an increase of 37%
• Gross margin, calculated based on net revenue, was 44%
• Continued sales growth quarter-over-quarter with gross revenue $4,408,997 for Q2 2023 (compared to $3,358,213 for Q1 2023), representing an increase of 31%
• Expanded team and new partnerships, adding expertise to enable innovation and production efficiencies.
• Successfully grew our product offerings to 50 stock keeping units (“SKUs”) across the country and became a top seller of new and existing innovation including¹:
  • In the 1G VAPE Category:
    • ACROSS CANADA – #8
    • ONTARIO – #5
    • ALBERTA – #9
    • SASKATCHEWAN – #3
  • In the 1×0.5G PREROLLS:
    • ACROSS CANADA – #1
    • ONTARIO – #1 (Supplier and SKU)
    • SASKATCHEWAN – #3 (Supplier and SKU)
    • MANITOBA – #3 Supplier / #2 SKU

“As we continue to expand to more markets across the country with our offerings, we are thrilled to report consistent growth in our revenue and market share despite the price compression that continues to impact the cannabis industry. Ayurcann is proud to have generated an increase in revenue from its business-to-consumer strategy. Ayurcann is selling products across the country and has 6,500 products listed for sale (the “Product Offerings”) throughout the vape, concentrate, oil and flower sectors (the “Sectors”). The increase in revenue, combined with the growth of our in-house brands, continues to have a positive impact on the future development of Ayurcann,” said Igal Sudman, Chief Executive Officer of Ayurcann.

OPERATIONAL HIGHLIGHTS FOR THE THREE-MONTHS ENDED DECEMBER 31, 2022

• Over 6,500 Product Offerings throughout New Brunswick, Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia with over 40 new SKUs being launched over the next three to six months, continuing to provide innovation to consumers.
• Top selling Company brands: Fuego, Hustle & Shake, and Xplor, are consistent performers in the provinces they are listed in.
• Consistently offered new SKUs to the market, reflecting the reliability and value that Ayurcann has brought to the recreational cannabis market in Canada.

“With a focus for innovation and growth of new product offerings, combined with our current Product Offerings, we are confident that we can grow market share in the Sectors across the country to help grow our top line revenues,” further added Mr. Sudman.

For further information, please contact:

Igal Sudman, Chairman and Chief Executive Officer
Ayurcann Holdings Corp.
Tel: 905-492-3322.
Email: info@ayurcann.com

Investor Relations:

Email: ir@ayurcann.com

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 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 Company launching new SKUs upon the timelines disclosed herein; the Company gaining market share across the country, allowing the Company to grow its revenue; the Company’s expanded team providing innovation and product efficiencies; automation tools increasing workflow and efficiencies; 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 the 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 launching and distributing the new SKUs; the Company growing its exposure, consumer and retail partnerships and securing additional product listings and market share throughout the country; the Company maintaining a continuous path of growth; the Company’s in-house brands and revenue having a positive impact on the Company’s future development; the Company maintaining and creating new relationships with retail distributors; the Company’s expanded team and automation tools providing innovation, increasing workflow and efficiencies; 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 revenue and/or its 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 for its new SKUs and grow its market share across the country; the Company’s inability to secure additional partnerships; the Company’s inability to innovate, increase workflows and/or create efficiencies; 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.

¹ Based on reporting by Hyfyre IQ as of February 23, 2023.

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.

New Leadership Team is Focused on Accelerating Growth and Margin Enhancement

Highlights include:

• A new leadership team has been introduced with a focus on the following:
• Q2 saw a decrease in operating expenses of $2 million or 30% year over year and $3.5 million or 27% for the six months year over year in the North American accessories and Canada cannabis business. This is offset by increased costs of $4.4 million and $8.5 million relating to expanding the California cannabis distribution business for three and six months, respectively.
• Q2 saw continued growth of our California cannabis distribution business, generating revenue of a quarter-over-quarter increase of 177%.
• Q2 saw gross margin improve to 17.1% compared to 11.9% in Q1 2022. Our focus on driving efficiencies in our North American accessories business reduced overall inventory by 14% or $1.5 million. The team continues to focus on margin-enhancing products and opportunities.

TORONTO, Feb. 23, 2023 /PRNewswire/ – Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) (“Humble” or the “Company”), a leading North American distributor of cannabis and cannabis accessories, today reported its second-quarter fiscal 2023 (“Q2 2023”) financial and operating results for the six and three months ended December 31, 2022.

“I want to acknowledge the effort made by our prior leadership team,” said CEO Jakob Ripshtein. “The past twelve months was a challenging adjustment period for our business.”

In Q2, the company saw a quarter-over-quarter revenue increase of 177% in its California cannabis distribution business. Operating expenses decreased by $2 million or 30% year over year in the North American accessories and Canada cannabis business and decreased by $3.5 million or 27% for the six months year over year. However, increased costs of $4.4 million and $8.5 million relating to expanding the California cannabis distribution business for three and six months, respectively, offset these savings.

“The progress we have made in addressing our inventory concerns is encouraging, but we are confident there is more we can do in this area,” said Mr. Ripshtein.

Gross margin improved to 17.1% compared to 11.9% in Q1 2022, thanks to driving efficiencies in the North American accessories business that reduced overall inventory by 14% or $1.5 million.

Mr. Ripshtein continued, “Our focus on margin-enhancing products and opportunities includes the introduction of a proactive, rigorous approach to address inventory levels further. We will concentrate on high-velocity, margin-enhancing SKUs, which are expected to provide working capital and gross profit benefits.”

The company’s new leadership team is focused on accelerating the growth of the cannabis business, driving change management to develop effective and efficient operations, margin enhancement within the North American accessories business, and prioritizing white-label offerings to deliver a differentiated service to customers that generate accretive margins.

Mr. Ripshtein concluded, “Our commitment to providing the best possible service to our customers goes hand in hand with ensuring that we are disciplined in addressing the task at hand inside our business. We must accelerate growth opportunities, drive efficiencies at every touchpoint, and deliver long-term shareholder value.”

The financial statements, notes to the financial statements, and Management’s Discussion and Analysis for the six and three months ended December 31, 2022, are available on the SEDAR website at www.sedar.com.

About Humble & Fume Inc.

Humble & Fume Inc. is a leading North American distributor of cannabis and cannabis accessories, supported by a customer-centric sales team and strong fulfillment infrastructure. As the only fully-integrated cannabis distribution solution, Humble bridges the gap for retailers, licensed cannabis producers, multi-state operators, and cannabis consumers to maximize sales penetration, and increase financial performance. With over 20 years of North American operating experience, Humble has cultivated extensive vendor and customer relationships, distributing premium cannabis consumables and consumption devices. The Company is comprised of subsidiaries that represents its vertical integration across North America: Humble+Fume, B.O.B. Headquarters Inc., Windship Trading LLC, Humble+ Cannabis Solutions and Fume Labs Inc.

Non-IFRS Financial Measures

EBITDA and Adjusted EBITDA are financial measures that are not defined under IFRS. We define EBITDA as net income (loss), or “earnings”, before interest, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before: (i) fair value adjustments on biological assets and fair value adjustments on sale of inventory; (ii) share-based compensation expense; (iii) RTO listing expense; and (iv) goodwill impairment losses. We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our operating business performance and other one-time or non- recurring expenses, and also provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein.

Forward-Looking Information and Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the proposed listing on the CSE, the focus of the Company’s business, and intentions of those subject to early warning disclosure requirements. Any such forward-looking statements may be identified by words such as “expects”, “anticipates”, “intends”, “contemplates”, “believes”, “projects”, “plans” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, Humble & Fume Inc.’s strategic plans including future growth opportunities and strategies in the United States are all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such forward-looking statements will occur as described herein. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results unless required by applicable law. Readers are encouraged to refer to the Company’s disclosure available on its SEDAR profile (at www.sedar.com) for information as to the risks and other factors which may effect the Company’s business objectives and strategic plans.

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.