Estimated revenue reaches CAD$39 million¹ (a record of over NIS 100 million):

Eleventh consecutive quarter of profitable growth with revenue growth expected to continue in Q4 2022

NEW YORK and TORONTO and HERZLIYA, Israel, Nov. 11, 2022 (GLOBE NEWSWIRE) — InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) (“InterCure” or the “Company”) today announced record preliminary financial results for the Third quarter of 2022. All amounts are expressed in Canadian dollars ($) or New Israeli Shekels (NIS), unless otherwise noted.

Preliminary Third Quarter 2022 Financial Highlights and Milestones

• Record revenue estimated to be $CAD 39 million (Over NIS 100 million), 63% over the revenues of the third quarter of 2021 and sequential growth of over 6%.
• Eleventh consecutive quarter of growth representing an annualized run rate of over $CAD 155 million (Over NIS 400 million).
• Revenue growth expected to continue in Q4 2022.
• Solid demand for Canndoc’s branded products and expansion of the Company’s medical cannabis dispensing operations.
• Continued expansion of the company’s branded products portfolio, launching more than 10 new GMP SKUs during the quarter.
• First company to comply with the new 109 IMCA import regulations^2.
• Continued expansion of the Company’s medical cannabis dedicated pharmacy chain to a of total 25 locations as of the end of the third quarter.
• Continued execution of the company’s global expansion plan.

The Company plans to file its full financial results for the third quarter on Tuesday, November 15^th , 2022.

____________________________
^{1 CAD conversion rate from NIS as of 09.30.2022 (2.59 NIS)}

^{2 For the best of the company’s knowledge.}

About InterCure (dba Canndoc)

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

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

Caution Regarding Financial Estimates

The financial estimates set forth above are based on an initial review of the Company’s operations for the quarter ended September 30, 2022 and are subject to change. The Company’s independent registered public accounting firm, Somekh Chaikin (member firm of KPMG International), has not audited, reviewed or performed any procedures with respect to the accompanying financial estimates and other data, and accordingly does not express an opinion or any other form of assurance with respect thereto. They should not be viewed as a substitute for audited financial statements prepared in accordance with generally accepted accounting principles and are not necessarily indicative of the Company’s results for any future period.

Forward-Looking Statements

This press release may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to InterCure’s objectives plans and strategies, as well as statements, other than historical facts, that address activities, events or developments that InterCure intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as “believes”, “hopes”, “may”, “anticipates”, “should”, “intends”, “plans”, “will”, “expects”, “estimates”, “projects”, “positioned”, “strategy” and similar expressions. Specific forward-looking statements contained in this press release include, but are not limited to: the Company’s Q3 2022 revenue, the success of its global expansion plans, the expected annualized revenue for 2022, and its expansion strategy to major markets worldwide. Forward-looking statements are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Many factors could cause InterCure’s actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the Company’s future revenue growth and profitability, the expected operations, financial results business strategy, competitive strengths, expansion strategy to major markets worldwide, the legalization of CBD in Israel and its impacts on the Company, the impact of the COVID-19 pandemic and the war in Ukraine. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond InterCure’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the Israeli, U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in the Company Annual Information Form dated April 5, 2022 which is available on SEDAR at www.sedar.com, and under the heading “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the annual report on Form 20-F, filed with the Securities Exchange Commission on April 28, 2022. InterCure undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Contact:

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

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.

– Stoker’s continues to gain share with Zig-Zag’s US rolling papers and e-commerce subsegment recording another quarter of double digit growth

LOUISVILLE, Ky., July 27, 2022–(BUSINESS WIRE)–Turning Point Brands, Inc. (“TPB” or “the Company”) (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, announced today financial results for the second quarter ended June 30, 2022.

Q2 2022 vs. Q2 2021

• Net sales decreased 16.1 percent to $102.9 million
  • Combined net sales for Zig-Zag and Stoker’s Products demonstrated resilience decreasing 0.9 percent for the quarter
  • NewGen net sales declined by 45.1 percent (declined 2.1 percent sequentially)
• Gross profit decreased 14.2 percent to $51.5 million
• Net income decreased 64.7 percent to $5.4 million
• Adjusted EBITDA decreased 17.6 percent to $24.7 million (see Schedule A for a reconciliation to net income)
• Diluted EPS of $0.30 and Adjusted Diluted EPS of $0.70 as compared to $0.73 and $0.84 in the same period one year ago, respectively (see Schedule B for a reconciliation to Diluted EPS)

“We are pleased with the stable performance of both the Zig-Zag and Stoker’s segments during the quarter in light of a heightened inflationary environment for our customers with rising prices at the pump impacting consumer traffic in convenience stores. While overall sales decreased 16 percent from the previous year, Zig-Zag and Stoker’s sales were steady despite weakness in the wraps and loose leaf subsegments. Zig-Zag maintained its leading positions in both the roll-your-own paper and cigar wraps markets while Stoker’s MST experienced accelerated share gains driven by consumer trade-down to the value category. Despite NewGen revenue decreasing 45 percent from last year, the segment remained relatively stable from the previous quarter and profitable as we continue to monitor FDA regulatory developments,” said Yavor Efremov, President and CEO. “We continued to deploy a substantial amount of our free cash flow towards share repurchases during the quarter while maintaining a strong balance sheet providing us with optionality on further capital deployment.”

Mr. Efremov concluded, “Going forward, we maintain a favorable outlook on our underlying business and our competitive positioning. However, given the market environment during the second quarter, along with continued inflationary pressures and resulting uncertainty of consumer confidence, we feel it is prudent to adjust our outlook for the year.”

Zig-Zag Products Segment (45 percent of total net sales in the quarter)

For the second quarter, Zig-Zag Products remained broadly in-line with a record performance in 2021 with net sales decreasing 2.1 percent to $46.2 million against a tough comparable period when sales increased 72.3 percent in the prior year period. TPB’s U.S. rolling papers and e-commerce business, and its Canadian business both grew double-digits. However, this was offset by a decline in the cigar wraps business driven partially by a trade inventory reduction during the current period compared against a trade inventory load in the prior year period. Wild Hemp sales moved into the Zig-Zag Products segment during the current year period, which contributed $0.2 million, or 0.4 percent to segment sales. For the second quarter, total Zig-Zag Products segment volume decreased 2.3 percent, while price / mix increased 0.2 percent.

For the quarter, the Zig-Zag Products segment gross profit decreased 4.7 percent to $26.4 million. The segment’s gross margin declined 160 basis points to 57.2 percent driven primarily by strong growth in lower gross margin products.

“Paper cones and Zig-Zag’s e-commerce business once again drove the growth within our U.S. papers business,” said Graham Purdy, Chief Operating Officer. “Our wraps business saw a double-digit decline due to a tough comparable against a trade inventory load in the prior year period. We are excited to have recently launched distribution of CLIPPER lighters which we expect to ramp up through the second half of the year.”

Stoker’s Products Segment (33 percent of total net sales in the quarter)

For the second quarter, Stoker’s Products net sales increased 0.7 percent to $33.6 million. MST grew mid-single digits but was offset by a decline in loose-leaf chewing tobacco. MST represented 65 percent of Stoker’s Products revenues in the quarter, up from 62 percent a year earlier. FRE nicotine pouch products’ sales moved into the Stoker’s Products segment during the current year period and contributed $0.2 million or 0.5 percent to segment sales. For the second quarter, total Stoker’s Products segment volume decreased 6.1 percent, while price / mix increased 6.8 percent.

For the quarter, the Stoker’s Products segment gross profit decreased 0.4 percent to $18.1 million. The segment’s gross margin contracted 60 basis points to 53.8 percent due to an inventory write-down of certain FRE products due to rationalization of the product line ahead of the regulatory filing deadline. The segment’s gross margin expanded 80 basis points excluding FRE.

“Stoker’s continued to outperform the market with share gains in both the MST and loose-leaf chewing tobacco categories during the quarter,” continued Purdy. “With the current inflationary environment accelerating the secular down-trading trends in the industry, Stoker’s remains well positioned within its categories as a leading value brand.”

NewGen Products Segment (22 percent of total net sales in the quarter)

For the second quarter, NewGen Products net sales decreased 45.1 percent to $23.1 million. The regulatory environment for the vape businesses continues to impact sales.

For the quarter, the NewGen Products segment gross profit decreased 50.6 percent to $7.0 million. The segment gross margin contracted 340 basis points from the previous year to 30.1 percent due to product mix and the competitive environment.

“Despite another challenging quarter further impacted by new regulation around synthetic nicotine products, our vape business remained profitable,” concluded Purdy. “Meanwhile, our distribution capabilities continued to improve through the quarter as we position our business for a post-PMTA environment while our vapor products’ applications remain under FDA review.”

Performance Measures in the Second Quarter

Second quarter consolidated selling, general and administrative (“SG&A”) expenses were $33.3 million compared to $35.1 million in the second quarter of 2021.

The second quarter SG&A included the following notable items:

• $0.3 million of restructuring expenses compared to none in the previous year
• $0.9 million of ERP / CRM scoping expenses and duplicative system costs compared to none in the previous year
• $1.5 million of stock options, restricted stock and incentive expense compared to $2.8 million in the year-ago period
• $0.4 million of transaction expenses compared to $0.7 million in the year-ago period
• $2.0 million of FDA PMTA-related expenses compared to $0.6 million in the year-ago period
• $1.6 million from the accounting consolidation of Turning Point Brands Canada compared to $1.1 in the year-ago period with the increase driven by the inclusion of a full quarter of the DVW acquisition in the current period

Total gross debt as of June 30, 2022 was $422.5 million. The corresponding net debt (total gross debt less cash) at June 30, 2022 was $315.1 million. The Company ended the quarter with total liquidity of $128.8 million, comprised of $107.4 million in cash and $21.4 million of revolving credit facility capacity.

During the quarter, the Company spent $8.8 million to repurchase 301,662 shares at an average price of $29.16 per share. The Company also recorded an additional impairment of $6.3 million during the quarter related to its investment in dosist.

2022 Outlook

Due to the uncertain macro environment and slower than expected improvement in our NewGen Products segment, the Company now expects the following full-year 2022 results:

• Zig-Zag Products sales of $193 to $200 million (compared to previous outlook of $193 to $203 million)
• Stoker’s Products sales of $127 to $133 million
• Consolidated adjusted EBITDA of $97 to $103 million

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 8:30 a.m. Eastern on Wednesday, July 27, 2022. Investment community participants should dial in 10 minutes ahead of time using the toll-free number 888-330-2502 (international participants should call 240-789-2713), and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted diluted EPS and Adjusted Operating Income. A reconciliation of these non-GAAP financial measures accompanies this release.

About Turning Point Brands, Inc.

Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic Zig-Zag® and Stoker’s® brands, and its emerging brands within the NewGen segment. TPB’s products are available in more than 215,000 retail outlets in North America, and on sites such as www.zigzag.com and www.solacevapor.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included it the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Financial Statements Follow:

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted diluted EPS, and Adjusted Operating Income. We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted diluted EPS, and Adjusted Operating Income are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted diluted EPS and Adjusted Operating Income are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance.

We define “EBITDA” as net income before interest expense, loss on extinguishment of debt, provision for income taxes, depreciation and amortization. We define “Adjusted EBITDA” as net income before interest expense, loss on extinguishment of debt, provision for income taxes, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted diluted EPS” as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Operating Income” as operating income excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance.

Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA Adjusted diluted EPS and Adjusted Operating Income exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.

In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005234/en/

Contacts

Investor Contacts
Turning Point Brands, Inc.:
Louie Reformina, Senior Vice President, CFO
Turning Point Brands, Inc.
502.774.9238
[email protected]

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.

• Over $32MM in revenue for fiscal year 2021, up 675% from 2020
• Over $11MM in gross profit for fiscal year 2021, up from negative $0.5MM in 2020
• Q4 2021 gross margin in excess of 45%, up from 39% in Q3 2021

These improvements highlight GABY’s unique approach to retail cannabis as the company moves into 2022 with an eye on expansion and acquisition

SAN DIEGO, CA / ACCESSWIRE / February 7, 2022 / GABY Inc. (“GABY” or the “Company“) (CSE:GABY)(OTCQB:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego’s Mankind Dispensary (“Mankind“), is pleased to review a 2021 filled with numerous operational, sales, and marketing improvements since acquiring Mankind in April, 2021. These improvements highlight the Company’s successful transition into the retail space, backed by decades of retail leadership experience. These successes underscore the expertise the Company will bring to future acquisitions and greenfield expansions in 2022 and beyond.

Since acquiring Mankind, the GABY team has executed a series of initiatives to improve access to, and availability of, high-quality cannabis, backed by unparalleled cannabis knowledge and industry-leading customer service. By combining retail optimizations with operational efficiencies and improved outreach efforts, GABY has expanded Mankind’s customer base, increased profitability, grown its delivery fleet, and achieved numerous milestones and accolades.

Highlights include:

• GABY estimates its 2021 fiscal year revenue and gross profit as follows:
  • Over $32MM in revenue, up from $4.2MM in fiscal year 2020
  • Over $11MM in gross profit, up from negative $0.5MM in fiscal year 2020
• Gross margin in Q4 2021 is expected to be in excess of 45%, an increase from 39% in Q3 2021.
• GABY leadership executed over US$3MM (C$3.8MM) in annual cost savings which will be reflected starting in Q1 2022.
• Re-merchandizing strategy and in-store sales training saw basket size increase by an average of US$2.04 (C$2.58) per customer, adding approximately US$670,000 (C$850,000) in sales on an annualized basis.
• GABY’s Kind Republic cannabis flower and extract brand produced sales of US$1.7MM (C$2.2MM) via Mankind Dispensary, in the first twelve months following launch.
• Expanded delivery fleet and marketing optimizations generate a 10.86% increase in weekly deliveries and 3% increase in ecommerce conversions in Q4 2021.
• New Standard Operating Procedures implemented to eliminate redundant processes, streamline work flows and prepare operations for organic and acquisitive growth.
• Mankind is named to the 2021 Inc. Magazine list of 5,000 fastest-growing companies in the United States.
• GABY launches its “Plant.People.Planet.” initiative at Mankind, partnering with charities in San Diego and beyond to inspire positive change.

Early morning shoppers in front of the Mankind “Plant.People.Planet” display wall

“I’m immensely proud of the efforts and results of the GABY management team over the past nine months,” said GABY Founder and CEO Margot Micallef. “The changes we’ve made are proof that ‘corporate cannabis’ can work. GABY and Mankind have built an environment that honors California cannabis culture, provides unparalleled cannabis experiences for consumers, and achieves operational and profitability milestones”.

###

About GABY Inc.

GABY Inc. is a California-focused retail consolidator and the owner of Mankind Dispensary, one of the oldest licensed dispensaries in California. Mankind is a well-known, and highly respected dispensary with deep roots in the California cannabis community operating in San Diego, California. GABY curates and sells a diverse portfolio of products, including its own proprietary flower brand, Kind Republic, which is proudly manufactured at GABY Manufacturing. A pioneer in the industry with a multi-vertical retail foundation, and a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition.

GABY’s shares trade on the Canadian Securities Exchange (“CSE“) under the symbol “GABY” and on the OTCQB under the symbol “GABLF”. For more information on GABY, visit GABYInc.com

Media Contact:

Senior Communications Manager
Charlie Rohlfs
(631) 579-0858
[email protected]

General

Margot Micallef, Founder & CEO
or Investor Relations at [email protected] or 800-674-2239

Currency Presentation

Unless otherwise indicated, all references to “$” or “C$” in this press release refer to Canadian dollars and all references to “US$” in this Listing Statement refer to United States dollars.

Disclaimer and Forward-Looking Information

The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward-looking statements include, but are not limited to, the estimated current and future annual cost savings of the Company, the Company’s future business strategy, including its plans to expand organically and through future acquisitions or greenfield expansions, and the anticipated benefits to be derived from GABY’s New Standard Operating Procedures. Although GABY believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because GABY can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Without limitation, these risks and uncertainties include: the severity of the COVID-19 pandemic; risks associated with the cannabis industry in general; failure to benefit from partnerships or successfully integrate acquisitions; actions and initiatives of federal, state and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies; the size of the medical-use and adult-use cannabis market; competition from other industry participants; adverse United States (“U.S.“), Canadian and global economic conditions; failure to comply with certain regulations; and departure of key management personnel or inability to attract and retain talent. GABY undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

To the extent any information contained in forward-looking statements in this press release constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated financial performance of the Company and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information or financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to the risks set out above for forward-looking statements. The Company’s actual financial position and results of operations may differ materially from its management’s current expectations and, as a result, the Company’s actual revenue may differ materially from the prospective revenue estimates or projections provided in this press release. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations for the applicable financial periods.

The financial information outlined above for the Company’s Q4 2021 and fiscal year ended December 31, 2021 is an estimate of management only and is subject to, and should be read in conjunction with, GABY’s audited annual financial statements and management’s discussion and analysis for the three months and year ended December 31, 2021, which will be filed on the Company’s SEDAR profile at www.sedar.com and the Company’s website www.GABYinc.com.

Each of Mankind and GABY Manufacturing, are subsidiaries of GABY and hold a cannabis license in the State of California. Readers are cautioned that unlike in Canada which has Federal 032320-F legislation uniformly governing the cultivation, distribution, sale and possession of medical cannabis under the Cannabis Act (Federal), in the U.S., cannabis is largely regulated at the State level. Cannabis is legal in the State of California; however, cannabis remains illegal under U.S. federal laws. Notwithstanding the permissive regulatory environment of cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. federal law. To the knowledge of the Company, the businesses operated by each of GABY’s subsidiaries are conducted in a manner consistent with the State law of California, as applicable, and are in compliance with regulatory and licensing requirements applicable in the State of California, respectively. However, readers should be aware that strict compliance with State laws with respect to cannabis will neither absolve GABY, or its subsidiary of liability under U.S. federal law, nor will it provide a defense to any federal proceeding in the U.S. which could be brought against any of GABY, or its subsidiary. Any such proceedings brought against GABY, or its subsidiary may materially adversely affect the Company’s operations and financial performance generally in the U.S. market specifically.

SOURCE: GABY 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.