NORWOOD, Mass., Aug. 02, 2023 (GLOBE NEWSWIRE) — MariMed Inc. (“MariMed” or the “Company”) (CSE: MRMD) (OTCQX: MRMD), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial results for the second quarter ended June 30, 2023.

“I am pleased to report another solid quarter of accelerating revenue growth on both a year-over-year and a sequential basis as we continue to outperform the industry,” said Jon Levine, Chief Executive Officer. “We reported our 14th consecutive quarter of positive adjusted EBITDA. Our wholesale business continued to set monthly and quarterly sales records, which we believe will continue to accelerate with the commencement of adult-use sales in Maryland, which began on July 1st. Our balance sheet remains one of the strongest in the industry, and we were particularly pleased with the exponential growth of our Maryland operations that executed flawlessly to support the increased demand of adult-use sales.”

Financial Highlights¹

The following table summarizes the Company’s consolidated financial highlights (in millions, except percentage amounts):

¹ See the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled “Discussion of Non-GAAP Financial Measures” below and in the financials information included herewith.

“Our 11% year-over-year revenue growth this past quarter demonstrated strong execution during a continued challenging environment,” said Susan Villare, Chief Financial Officer. “We continue to be laser focused on completing our expansion projects to accelerate our revenue growth while leveraging our existing infrastructure to drive increased overall profitability.”

CONFERENCE CALL

MariMed management will host a conference call on Thursday, August 3, 2023, to discuss these results at 8:00 a.m. Eastern time. The conference call may be accessed through MariMed’s Investor Relations website, or by clicking the following link: MRMD Q223 Earnings Webcast.

SECOND QUARTER 2023 OPERATIONAL HIGHLIGHTS

During the second quarter, the Company announced the following developments in the implementation of its strategic growth plan:

• April 4: The Maryland Medical Cannabis Commission issued approval to once again manufacture and sell high-dose edibles. The Company added 40mg THC-infused products across its entire edibles portfolio including Betty’s Eddies and Bubby’s Baked, which are all selling at record levels.
• April 25: Opened an adult-use Panacea Wellness Dispensary in Beverly, Massachusetts, marking the Company’s third operational dispensary in the state, and the 10th dispensary it owns or manages. The Company plans to obtain a license for medical sales at this location as soon as possible.
• June 12: Opened a medical Thrive Wellness Dispensary in Tiffin, Ohio, marking the Company’s first operational dispensary in the state, and the 11th dispensary it owns or manages across six states. The Company’s goal is to continue to look for opportunities to expand its presence in this state.
• June 22: Introduced a Limited-Edition THC and CBG Infused Beachtime Betty’s fruit chew for Summertime Relaxation in Massachusetts, Maryland, and Delaware. Beachtime Betty’s joins a full slate of Betty’s Eddies products that feature specific end-effects, including Take It Easy Eddies for stress relief, Go Betty Go for an energy boost, Ache Away Eddies for pain relief, Bedtime Betty’s for restful nights, Elderbetty for an immunity boost, Smashin’ Passion for sexual wellness and Betty Good Times for any time.

OTHER DEVELOPMENTS

Subsequent to the end of the second quarter, the Company announced the following development:

• July 13: MariMed Stages the ‘Boston 280E THC Party’ in Boston Harbor To Protest Unfair Cannabis Industry Tax Laws. Inspired by its 250th anniversary, the Company reenacted the Boston Tea Party. Onboard a schooner in Boston Harbor, MariMed management and employees dressed in colonial outfits and decried unfair IRS Code 280E on behalf of the entire cannabis industry.

2023 FINANCIAL GUIDANCE

MariMed remains committed to its proven strategic growth plan and continues to operate some of the best facilities in the cannabis industry. The Company’s guidance for full year 2023 is:

• Revenue of at least $150 million;
• Gross margin in line with full year 2022, which was about 48%;
• Non-GAAP Adjusted EBITDA of at $32 million to $35 million;
• Capital expenditures of $30 million.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

MariMed’s management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, and making operating decisions, planning and forecasting future periods. The Company has provided in this release several non-GAAP financial measures: Non-GAAP Gross margin, Non-GAAP Net income (loss), Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP EBITDA margin and non-GAAP Adjusted EBITDA margin, as supplements to Revenue, Gross margin, Net income (loss) and other financial measures prepared in accordance with GAAP.

Management believes these non-GAAP financial measures are useful in reviewing and assessing the performance of the Company, and when planning and forecasting future periods, as they provide meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance. In addition, the Company’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods and for financial and operational decision-making. The presentation of these non-GAAP measures is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP.

Management believes that investors and analysts benefit from considering non-GAAP financial measures in assessing the Company’s financial results and its ongoing business, as it allows for meaningful comparisons and analysis of trends in the business. In particular, non-GAAP adjusted EBITDA is used by many investors and analysts themselves, along with other metrics, to compare financial results across accounting periods and to those of peer companies.

As there are no standardized methods of calculating non-GAAP financial measures, the Company’s calculations may differ from those used by analysts, investors and other companies, even those within the cannabis industry, and therefore may not be directly comparable to similarly titled measures used by others.

Management defines non-GAAP Adjusted EBITDA as income (loss) from operations, determined in accordance with GAAP, excluding the following items:

• depreciation of fixed assets;
• amortization of acquired intangible assets;
• Impairment or write-downs of intangible assets;
• stock-based compensation;
• legal settlements; and
• acquisition-related and other expenses.

For further information, please refer to the publicly available financial filings available on MariMed’s Investor Relations website, as filed with the U.S. Securities and Exchange Commission, or as filed with the Canadian securities regulatory authorities on the SEDAR website.

ABOUT MARIMED

MariMed Inc., a multi-state cannabis operator, is dedicated to improving lives every day through its high-quality products, its actions, and its values. The Company develops, owns, and manages seed to sale state-licensed cannabis facilities, which are models of excellence in horticultural principles, cannabis cultivation, cannabis-infused products, and dispensary operations. MariMed has an experienced management team that has produced consistent growth and success for the Company and its managed business units. Proprietary formulations created by the Company’s technicians are embedded in its top-selling and award-winning products and brands, including Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy. For additional information, visit www.marimedinc.com.

IMPORTANT CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

The information in this release contains “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to several risks and uncertainties.   All statements other than statements of historical facts contained in this release, including without limitation statements regarding projected financial results for 2023, including management’s belief that it will have its fourth consecutive year of positive operating cash flow, anticipated openings of dispensaries and facilities, timing of regulatory approvals, plans and objectives of management for future operations, are forward-looking statements.   Without limiting the foregoing, the words “anticipates”, “believes”, “estimates”, “expects”, “expectations”, “intends”, “may”, “plans”, and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements are based on our current beliefs and assumptions regarding our business, timing of regulatory approvals, the ability to obtain new licenses, business prospects and strategic growth plan, and other future conditions.   Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict.   Our actual results may differ materially from those contemplated in these forward-looking statements due to various risks, uncertainties, and other important factors, including, among others, reductions in customer spending, our ability to recruit and retain key personnel, and disruptions from the integration efforts of acquired companies.

These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect our business and results of operations.   These statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict, including, among other factors, changes in demand for the Company’s services and products, changes in the law and its enforcement, and changes in the economic environment. Additional information regarding these and other factors can be found in our reports filed with the U.S. Securities and Exchange Commission.   In providing these forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.

All trademarks and service marks are the property of their respective owners.

For More Information Contact:

Investor Relations:
Steve West, Vice President, Investor Relations
Email: ir@marimedinc.com
Phone: (781) 277-0007

Company Contact:
Howard Schacter, Chief Communications Officer
Email: hschacter@marimedinc.com
Phone: (781) 277-0007

Media Contact:
Grasslands
Email: marimed@mygrasslands.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.

Q2’23 Highlights

• Revenue up 36% to $1.4M over prior year period; increase of 81% over Q1’23
• Distillate volumes sold increased by 118% compared to the six-month period ending Q2’22
• Gross margin of $2.3M or 42.8% before fair value adjustments for the six-month period
• Decreased G&A expenses by $188k or 8% from prior year period

“In Q2, our dedication to executing strategic initiatives has been validated through an impressive surge in sales growth of 36%,” said Mark Aiken, Chief Executive Officer of Christina Lake Cannabis.   “As we advance into the second half of Fiscal 2023, we maintain our unwavering commitment to meeting the escalating sales demand for our premium distillate products while driving operating efficiencies throughout our processes, and to expand our product lines available to our valued customers.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Distillate volumes sold increased by 118% from the comparative period ending Q2’22 resulting in revenue growth of 36% to $5.4M from $4.0M despite market price compression in the price of distillate. Revenue growth was driven by an expanding customer base with increased demand in distillate inputs for both vape and infused pre-rolls.

Gross Margin Before Fair Value Adjustments was 42.8% compared to 55.4% in the prior year period. The decline in gross margin is primarily attributed to a significant drop in the price of wholesale distillate. Cost of goods sold increased by 74% from the comparative period due to the significant increase in distillate volume produced and sold as noted above. The Company continues to work towards production efficiencies to combat price compression in the wholesale distillate market as production and sales continued to ramp up.

Total general & administrative (“G&A”) expenses declined by $189k or 8% from prior comparative period, driven by year-over-year reductions in management fees, marketing, share based compensation and repairs and maintenance expenses. G&A decreased to 39% of revenue during the period, compared with 58% in the prior year.

Loss and comprehensive loss in Q2’23 was $(2.0M) which is a $1.2M increase from the prior year period loss of $(794k). The year-over-year increase in loss is primarily driven by an increase in changes in fair value of inventory sold, and reduction in income from other items relating to a one time settlement of $258k in the comparative period.

Cash and Working Capital

As at May 31, 2023, the Company had working capital of $1,715,664 (November 30, 2022 – $3,683,558) which consisted of cash of $1,531,378 (November 30, 2022 – $1,810,639), receivables of $2,183,575 (November 30, 2022 – $1,906,820), prepaid expenses of $19,432 (November 30, 2022 – $3,885), inventory of $4,144,802 (November 30, 2022 – $5,766,418). Current liabilities, being accounts payable and accrued liabilities, current portion of loan and current portion of convertible debentures, $6,163,533 (November 30, 2022 – $5,832,954).

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.

Non-IFRS Financial Measures

In this news release, the Company reports “Gross Margin Before Fair Value Adjustments”, a financial measure that is not determined or defined in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS“). Gross Margin Before Fair Value Adjustments does not have a standardized meaning prescribed by IFRS and the Company’s methods of calculating this financial measure may differ from methods used by other companies. Accordingly, such non-IFRS financial measure may not be comparable to similarly titled measures presented by other companies. This measure is provided as additional information to complement IFRS by providing a further understanding of operations from management’s perspective and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies.

Forward Looking Statements

This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. 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.

Financial Outlook

This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s operational cash flow for the month ended May 31, 2023 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements”. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward-Looking Statements”, it should not be relied on as necessarily indicative of future results.

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.

• VINIA® sales orders reached a record high of USD 1.71M representing 145% growth compared to Q3 2021 and 81% growth compared to Q2 2022
• Q3 Sales in the US delivered 3X the sales of Q2 2022 and crossed the USD 1 Million mark
• Strong sales momentum and increase in subscribers support guidance to achieve USD 5M-7M sales orders in in 2022, and cash flow positive in 2023
• Unique Cannabis composition (analysis performed by independent 3rd party certified laboratory) will be announced on October 25^th

Vancouver, British Columbia and Rehovot, Israel–(Newsfile Corp. – October 3, 2022) – BioHarvest Sciences Inc. (CSE: BHSC) (OTCQB: CNVCF) (FSE: 8MV) (“BioHarvest” or “the Company”) today announced Q3 2022 sales orders of its flagship VINIA® product reached a record high of USD 1.71M, representing 145% Year over Year growth and 81% growth compared to Q2 2022.

Following the Company’s mid-August scale up of its marketing activities, Q3 sales orders in the US reached a record USD 1.08M (350% growth over Q3 2021 and 200% growth over Q2 2022). This included an impressive quarter on quarter increase of 5X in the number of new customers driven by the health benefits that VINIA® delivers and the strong clinical and scientific foundations of the product. U.S. VINIA® sales metrics continue to improve and are building a healthy and prosperous Nutraceuticals business. For example: In the 3^rd quarter, 85% of total VINIA® customers who purchased via VINIA.com, are subscription based and 90% of active subscribers are for 3 months or greater. This demonstrates customer commitment to the VINIA® brand and represents a significant customer lifetime value. Cost of customer acquisition in Q3 2022 declined by more than 50% compared to Q2 2022, demonstrating the proficiency of the marketing team to skillfully employ the most efficient media mix (including TV, google and facebook) with consumers. In Q4, national radio and other channels will be tested to assess their ability to further improve overall communication efficiency. VINIA® continues to achieve a best-in-class verified customer rating of 4.8 out of 5 with over 830 verified reviews, demonstrating VINIA®’s ability to make a significant foundational positive impact to consumers’ lives.

The Israeli market continues to demonstrate increased consumer adoption of VINIA® and delivered a record USD 627k (39% growth over Q3 2021 and 10% growth from Q2 2022). Total new customers in Israel grew 19% in Q3 2022 over Q2 2022. VINIA® has a strong customer base in Israel and is becoming a household recognized brand. Average $ spend per transaction reached an all-time high of US$210 per transaction in September.

Scott McCune, founder of McCune Sports and former SVP in the Coca-Cola Company (leading Coca-Cola’s global strategies and organizations for integrated marketing) and member of the board of advisors of BioHarvest said, “These results are very impressive especially when you look at how the Company is building best-in-class commercial and marketing capabilities for VINIA®, which is the first of many products they will bring to North America. Decreasing the cost of acquisition and the fast scaling of the business are encouraging achievements as they look to build a highly profitable business and world class brand.”

In this quarter, BioHarvest has made significant progress in the Cannabis vertical. The Company continues to build breakthrough capabilities in eliciting cannabinoids in its bioreactors.

On October 25^th, BioHarvest plans to announce the details of its unique composition (analysis performed by an independent third-party certified laboratory) and will discuss them during the Company’s shareholder update on that same day. Dr. Yochi Hagay, the co-founder and CTO who will attend this update call, stated, “It will be a special pleasure for me to share our R&D achievements with our shareholder partners, as our team continues to make breakthroughs in the Plant cellular biology field.”

Among the Company’s achievements in this quarter, as recently announced and in recognition of the sustainability impact of BioHarvest’s Bio Plant Cellicitation technology, the Business Intelligence Group awarded the Company with the prestigious Sustainability Leadership Award.

“I am beyond pleased with our strong Q3 results as they validate the strength of our business model and of the critical capabilities we have built in both the Nutraceutical and Cannabis verticals;” said CEO Ilan Sobel, adding, “These Q3 Sales results and our ongoing breakthroughs in the Cannabis development represent significant achievements in our Biotech journey. The record results of Q3 show that we are on the right path for healthy growth and to achieve our financial goals, which include becoming cash flow positive by the end of 2023.”

Q3 Shareholder Update October 25, 11am PST |2PM EST

All shareholder partners, investors, media, and members of the scientific community are invited to register here: https://us02web.zoom.us/webinar/register/WN_iFRtgArbQfO6Wgz0QCh5BA.

The presentation will be approximately 45 minutes, followed by a live question and answer session. All registrants will be emailed a recording of the session., and any questions regarding the Company or the Q3 2022 Shareholder Update can be sent to [email protected].

About BioHarvest Sciences Inc.

BioHarvest Sciences Inc. (CSE: BHSC) is a fast-growing Biotech firm listed on the Canadian Securities Exchange. BioHarvest has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at industrial scale, without the need to grow the plant itself. This technology is economical, ensures consistency, and avoids the negative environmental impacts associated with traditional agriculture. BioHarvest is currently focused on nutraceuticals and the medicinal cannabis markets. Visit: www.bioharvest.com.

BioHarvest Sciences Inc.
Ilan Sobel, Chief Executive Officer

For further information, please contact:
Dave Ryan, VP Investor Relations & Director
Phone: 1 (604) 622-1186
Email: [email protected]

Twitter: https://twitter.com/BioHarvestBHSC
Facebook: https://www.facebook.com/BioHarvestSciences
LinkedIn: https://www.linkedin.com/company/bioharvestsciences/
YouTube: https://www.youtube.com/channel/UCGRJWztmLoycsLFWqwXAzAw

Forward-Looking Statements

Information set forth in this news release includes forward-looking statements that are based on management’s current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance that strong sales metrics experienced to date will result in future demand or that proposed additional marketing expenditures will result in increased sales. Markets for nutraceuticals are unpredictable and subject to changes in consumer tastes and trends as well as economic factors beyond our control. Delays and cost overruns may result in delays achieving our objectives obtaining market acceptance, and regulatory approvals for geographic expansion are subject to risk and cannot be guaranteed. There is no assurance that the Company sales revenue for 2022 will reach USD 5 to 7 million and there is no assurance that the Company cash flow breaking point will be achieved in 2023. There is no assurance of commercial availability of our Cannabis product in 2022 or that the Company achieves the conversion of the two tons VINIA® facility to Cannabis production in 2022. These things are subject to construction and approval delays and uncertainties that may be beyond the control of BioHarvest. Projected sales of Cannabis will require the Company to obtain production and/or export licensing which cannot be assured.

All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosure

Readers are cautioned that revenue alone do not give an accurate picture of the financial position of the Company and should be read in the context of the Company’s annual and quarterly financial statements

Neither the Canadian Securities Exchange nor its Regulation Services Provider accept 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.

Record Revenues and Gross Margins

LAS VEGAS, NV / ACCESSWIRE / August 2, 2022 / Australis Capital Inc. (CSE:AUSA) (OTCQB:AUSAF) (“AUSA”) (“AUDACIOUS” or the “Company“), announces its unaudited results for its fiscal year ended March 31, 2022. The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), expressed in Canadian dollars ($CAD). The Company’s independent auditors are auditing these statements, and the Company anticipates filing audited statement within the next 30 days. The Company’s unaudited financial statements can be accessed at https://ausa-corp.com/investor-information/financials/

Fiscal Year 2022 Financial Highlights (April 1, 2021, to March 31, 2022)

• Revenues increased by over 1,200% to nearly $9.5 million, driven predominantly by a full year of ALPS revenue consolidated (51% of ALPS acquired on March 8, 2021), as well as growth in the ALPS business throughout the year, along with management fee income starting in Fiscal ’22 related to the Green Therapeutics (“GT”) business.
• Gross margins turned positive at nearly $5.9 million, due predominantly to results at ALPS, along with the GT-related management fee income.
• Operating loss increased 38% to $19.4 million due to higher personnel and administrative costs related to the ALPS business, as well as investments in new product lines and initiatives related to expansion into other states.
• The Company raised $5.8 million in equity and debt financings during FY 2022.
• Total Assets stood at $63.3 million at the end of FY 2022, down from $82.4 million at the end of FY 2021, due to the sale and drop in value of the marketable securities owned (totally sold as of FY 2022) and the sale of land.
• Total Liabilities increased 12% to $17.7 million.
• Total Equity stood at $45.6 million as at March 31, 2022.

Operational highlights & Management Commentary

During the year ended March 31, 2022, the Company made significant progress through its expansion into multiple states, as well as internationally. The Company focused on driving sales in its core business (ALPS & GT), as well as launched new brands and product lines (LOOS, Mr. Natural, and Wreck Relief).

During the year under review, AUDACIOUS successfully entered into partnerships in Thailand (Green Triangle Holdings) and New York State (First Americans LLC, Hempire Inc.). Consequently, the Company is now present in New York with two projects, both aimed at the adult use market, that are able to operationalize and start selling well in advance of the introduction of general regulations and licensing, due to exemptions granted to licensed operations on first nations land and those related to hemp licensees. Furthermore, AUDACIOUS successfully applied for licenses in New Jersey.

Consequently, the Company is well positioned to drive further growth in Fiscal 2023.

Terry Booth, CEO, commented, “We have been able to develop a number of unique assets, from our award-winning GT brands, though our unique LOOS, Mr. Natural and Wreck Relief product lines, as well as our early mover initiatives in Thailand (revenue generating) and New York State. With our recently granted provisional license in New Jersey, where we are progressing towards conversion into a full adult use license, we believe we have assembled a portfolio of assets, the value of which is well in excess of what the market currently values us at. With our recently announced credit line and further capitalization initiatives under way, we believe AUDACIOUS is positioned exceptionally well to benefit from the strong anticipated growth on the U.S. East Coast, as well as internationally.”

Subsequent Events since March 31, 2022

Thailand

• The Company announced considerable progress at its partnership in Thailand with Golden Triangle Holdings (“GTH”). Following the successful harvest of a trial crop, GTH has now commenced cultivation at commercial scale. Furthermore, the Company announced it had secured major distribution channels in the region, including 7eleven Pharmacies, Loxley, King Power International and others. The Company’s first cannabis clinic in Thailand, Herbidus, has proven to be a hit with many hundreds of visitors monthly.
• In April the Company issued 17,369,317 shares in Australis for the initial investment, in a swap for 3,600,000 shares in GTH.
• In July the Company issued 38,878,435 shares in Australis for the second and final tranche to GTH.

New Jersey

• The Company announced it had received a provisional license in New Jersey for the cultivation, processing, and manufacturing of cannabis products. The Company is progressing towards meeting the requirements for conversion into a full adult use license.

New York

• AUDACIOUS announced a partnership with Hempire, recipient of an adult use cultivation license.
• The Company, through its partnership with First Americans LLC of the Saint Regis Mohawk tribe, was able to secure commence preparations for operations on the territory. The Company’s planned dispensary is currently being constructed (immediately opposite the casino resort with 2.4MM visitors annually), while groundwork for cultivation has commenced.
• Hempire: licensee through the NYS hemp program for cultivation, manufacturing, and distribution into the adult use market in New York State. Land secured, first outdoor planting to happen shortly.
• The Company also announced it is working with Bertha Lewis and The Black Institute on its social equity initiatives in New York.

Mr. Natural

• The Company launched its first product in Nevada under the Mr. Naturals brand: Full Spectrum Hash RSO. The powerful medicinal oil – rich in major and minor medicinal cannabinoids including THC, CBD, and CBN – is known for its therapeutic benefits and potential to provide relief for people suffering from post-traumatic stress disorder (PTSD), chronic illness and pain.

Credit Facility

• AUDACIOUS secured a $2.5 million credit facility from Lola Ventures, an entity controlled by CEO Terry Booth. Funds will go towards general working capital purposes, as well as growth initiatives.

Board

• On July 5, 2022, the Company announced the election of Jill Swainson, former Chief Legal Officer at Aurora Cannabis, to the board, who replaced Avi Geller, who resigned for personal reasons.

About AUDACIOUS

AUDACIOUS is a next-generation MSO growing the cannabis industry of tomorrow from the ground up, led by industry pioneer Terry Booth and an accomplished management team with proven industry track records. With operations that range from providing industry-leading sustainable cultivation design and optimization to retail storefronts, growing flower in-house, and manufacturing award-winning brands, AUDACIOUS has products and solutions for everyone. Quickly expanding through innovative partnerships and collaborations, AUDACIOUS is forging the inclusive cannabis community of tomorrow, today. Learn more about AUDACIOUS here.

AUDACIOUS common shares trade on the CSE under the symbol “AUSA” and on the OTCQB under the symbol “AUSAF.”

Terry Booth, CEO
[email protected]

For further information, please contact:

For Investors:
Marc Lakmaaker
T: +1.647.289.6640
[email protected].net

Neither the Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this news release.

FORWARD-LOOKING STATEMENTS:
This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to our business objectives, prospects, and guidance in respect of various financial and industry metrics, including, goals, strategies, capabilities, market position, competitive strengths, prospects, plans, expectations, anticipations, estimates and intentions; business and economic, industry trends; customer demand for products; the regulatory environment and legal proceedings; strength of our balance sheet, creditworthiness, capital resources, anticipated financial requirements; compliance with debt covenants; and the impact of the COVID-19 pandemic on the foregoing; expectations regarding gradual market and economic recovery in the aftermath of the COVID-19 pandemic.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology.

Forward-looking statements are presented for the purpose of assisting investors and others in understanding certain key elements of our current objectives, strategic priorities, expectations, outlook, and plans, and to obtain an understanding of our business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements require management and the Board to make assumptions and are subject to and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements and in this press release. While management and the Board consider these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this press release in relation to the five-year forecast include the following material assumptions: the award and fulfilment of customer contracts that the Company does not currently have in its backlog, the continuation of existing customer programs and anticipated labour costs associated with our operations for the periods covered in the forecast. Additional information, including with respect to other assumptions and risk factors underlying the forward-looking statements made in this press release, refer to the risk factors in both our MD&A for the quarter ended December 31, 2021.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with overall global and domestic economic conditions, risks associated with our business environment (such as risks associated with the financial condition of our customers; competition; force majeure events), operational risks such as the award of new business; the execution of customer orders; cash flows and capital expenditures; productivity enhancements, operational efficiencies, cost reduction initiatives; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain partners, contracts and suppliers; supply chain risks; human resources; reliance on information systems; adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; debt covenants), market risks (such as foreign currency fluctuations; changing interest rates; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in our MD&A for the quarter ended December 31, 2021.

For further information about AUDACIOUS, please visit our website.

The forward-looking statements present certain non-IFRS financial measures to assist readers in understanding the Company’s forecasted performance. Non-IFRS financial measures are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”). Reference is made to EBITDA (defined as net income before interest, income taxes, depreciation, and amortization), which the Company considers to be an indicative measure of operating performance and a metric to evaluate profitability. As there is no standardized method of calculating this measure, the Corporation’s EBITDA may not be directly comparable with similarly titled measures used by other companies. In addition, reference is made to revenue in the long-term forecast, which assumes recognition of all revenue at the point in time of shipment, excluding the recognition of revenue overtime. Similarly, this is a non-IFRS financial measure the company considers to be indicative of operating performance, and is not directly comparable with similarly titled measures used by other companies.

The foregoing list of factors that may affect future results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

SOURCE: Australis Capital, 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.

Conference Call on Tuesday, May 3, 2022 at 2:00pm EST

LOS ANGELES, May 03, 2022 (GLOBE NEWSWIRE) — Irwin Naturals Inc. (CSE: IWIN) (OTC: IWINF) (FRA: 97X) (“Irwin” or the “Company”) today announced the Company will file its results for the fiscal fourth quarter and full year 2021, the period ended December 31, 2021, on Tuesday May 3, 2022 on www.sedar.com.

Conference call

CEO Klee Irwin and CFO Philippe Faraut will be hosting a conference call that same day at noon (EST) to discuss the results, as well as the Company’s strategy and execution going forward.

Details for participants to listen to the call are as follows:

About Irwin Naturals

Irwin Naturals Inc. is a household name and best-in-class herbal supplement formulator since 1994 that is leveraging its brand to enter the cannabis and psychedelic industries. On a mission to heal the world with plant medicine, Irwin has operated profitably for over 27 years¹. Irwin’s growing portfolio of herbal products are available in more than 100,000 retail doors across North America, where nearly 100 million people know the Irwin Naturals brand². In 2018, the Company first leveraged its brand to expand into the cannabis industry by launching hemp-based CBD products into the mass market. The Company is now leveraging its famous halo of brand trust to become one of the first household name brands to offer THC-based products and psychedelic mental health treatment.

For investor-related information about the Company, please visit ir.irwinnaturals.com/

To contact the Company’s Investor Relations department, please call toll-free at (800) 883-4851 or send an email to [email protected].

Regulatory Overview

The following is a brief summary of regulatory matters concerning ketamine in the United States (“US”). Under the Controlled Substances Act (21 U.S.C. § 811) (the “CSA”), ketamine is currently a Schedule III drug as well as being listed under the associated Narcotic Control Regulations, and psilocybin is currently a Schedule I drug.

Most US States have enacted Controlled Substances Acts (“State CSAs”) which regulate the possession, use, sale, distribution, and manufacture of specified drugs or categories of drugs and establish penalties for State CSA violations and form the basis for much state and local drug laws enforcement activity. State CSAs have either adopted drug schedules identical or similar to the federal CSA schedules or, in some instances, have incorporated the federal scheduling mechanism. Among other requirements, some US States have established a prescription drug monitoring or review programs collect information about prescription and dispensing of controlled substances for the purposes of monitoring, analysis and education.

In the United States, facilities holding or administering controlled substances must be registered with the US Drug Enforcement Agency (“DEA“) to perform this activity. As such, medical professionals and/or the clinics in which they operate, as applicable, are also required to have a DEA license to obtain and administer ketamine (a “DEA License“). While ketamine is a controlled substance in the United States, it is approved for general anesthetic induction under the US Food, Drug, and Cosmetic Act. Once a drug is approved for use, physicians may prescribe that drug for uses that are not described in the product’s labelling or that differ from those tested by the manufacturer and approved by the Food and Drug Administration (the “FDA“). Licensed medical practitioners may prescribe ketamine legally in Canada or the United States where they believe it will be an effective treatment in their professional judgment.

Please see Irwin’s filing statement on its SEDAR profile for more information on the regulatory environment and regulations surrounding the US THC industry.

“Klee Irwin”
________________________________
Klee Irwin
Chief Executive Officer
T: 310-306-3636 [email protected]

Forward-Looking Information

This news release contains certain forward-looking statements that reflect the current views and/or expectations of management of the Company with respect to performance, business and future events. Forward-looking statements can often be identified by words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates. The Company does not undertake any obligation to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Neither the CSE nor its Market Regulator (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Irwin Naturals Inc.

¹ Under several corporate structures, Klee Irwin has operated the Irwin brand profitably since 1994, as measured by EBITDA adjusted for extraordinary costs.

² Based on a formal Company survey with a sample size of 500 randomly selected adults.

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.

Full Year 2021 Revenue of $21.3 Million, up 172%

Raises Full Year 2022 Revenue Guidance to $37 to $40 Million

TORONTO & SEATTLE, April 28, 2022–(BUSINESS WIRE)–POSaBIT Systems Corporation (“POSaBIT” or the “Company”) (CSE: PBIT, OTC:POSAF), a leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three and 12-months ended December 31, 2021.

“We exited 2021 with record revenue and accelerating momentum towards another year of growth and expansion,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “We exceeded the high end of our revenue guidance with $21.3 million in annual revenue and extended our record of doubling revenue each year since 2017. Transactional sales volume increased by more than 174% in 2021, a strong indication of our expanding geographic footprint as well as the accelerating adoption of electronic payment solutions across the industry. We have grown our business with limited investment delivering exponential growth and positive adjusted EBITDA in four of the last six quarters. Increasingly, cannabis merchants are gravitating towards electronic payment solutions for increased security and convenience for their customers, and our open platform gives merchants choice on how they want to build their processing infrastructure. In addition, there are a number of emerging opportunities in the cannabis market that we are eager to explore and further develop our business.”

Hamlin continued, “Looking ahead, we anticipate continued strong growth of our payments business as well as rapid expansion of our POS footprint into new states. Based on our current installed base and merchants under contract, we are raising our full year 2022 revenue guidance to between $37 and $40 million, which represents growth of more than 80% at the midpoint compared to 2021.”

Recent Operational Highlights

• Entered three new markets, Georgia, Texas and West Virginia, expanding geographic presence to 18 U.S. states across CBD and cannabis markets
• Entered CBD market with point-of-sale solution; now live in more than 20 brick and mortar CBD locations nationwide
• Entered into an agreement with dispensary chain Lume, with 32 locations in Michigan that the Company expects to be fully onboarded with POSaBIT by the end of Q2 2022
• Entered into agreements with additional large Multi-State Operators
• Completed the Company’s largest processing day in its history on 4/20/2022 with 100% uptime for the sixth 4/20 in a row
• Shipped several safety related enhancements on the POSaBIT Point of Sale to help promote a safer work environment for all store employees

Fourth Quarter 2021 Financial Highlights

• Transactional sales for Card Services totaled $102.6 million, up 96% compared with $52.4 million in the fourth quarter of 2020
• Total revenue was $6.4 million, up 110% compared with $3.1 million in the fourth quarter of 2020
• Gross profit was $1.5 million, or 23.0% of revenue, up 86% on a dollar basis compared with $797,000, or 26.1% of revenue in the fourth quarter of 2020
• Net loss was $(2.3) million, inclusive of a $(519,000) non-cash change in the fair value of derivative liabilities, compared with a loss of $(116,000), inclusive of a $(78,000) non-cash change in the fair value of derivative liabilities in the fourth quarter of 2020.
• Adjusted net loss was $(1.8) million, which excludes a $(519,000) non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(38,000), which excludes a $(78,000) non-cash change in fair value of derivative liabilities in the fourth quarter of 2020.
• Adjusted EBITDA was $(1.1) million, or (17%) of revenue, compared with $134,000, or 4% of revenue, in the fourth quarter of 2020

Full Year 2021 Financial Highlights

• Transactional sales for Card Services totaled $362 million, up 174% compared with $132 million in 2020
• Total revenue was $21.3 million, up 172% compared with $7.8 million in 2020
• Gross profit was $5.8 million, or 27.0% of revenue, up 232% on a dollar basis compared with $1.7 million, or 22.2% of revenue in 2020
• Net loss was $(10.6) million, inclusive of a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with a net loss of $(1.3) million, inclusive of a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
• Adjusted net loss was $(0.8) million, which excludes a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(1.2) million, which excludes a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
• Adjusted EBITDA was $(1.2) million, or (6%) of revenue, compared with $(558,000), or (7%) of revenue, in 2020

Warrants and Cash Update

As of December 31, 2021, the Company had cash of approximately $4.4 million compared to approximately $1.0 million as of December 31, 2020. This increase was partially driven by approximately $3.9 million of cash received from the exercise of 20,466,927 outstanding warrants during 2021.

Financial Results

The following table reconciles Adjusted EBITDA to net loss, as reported.

2022 Outlook

The Company provides the following guidance for the full year 2022.

Conference Call Information

Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.

Financial Reports

Full details of the financial and operating results are described in the Company’s consolidated financial statements with accompanying notes and related management’s discussion and analysis for the three and twelve months ended December 31, 2021 (collectively, the “FY 2021 Financial Statements and MD&A”). The FY 2021 Financial Statements and MD&A and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR at www.sedar.com .

Non-IFRS Measures

Adjusted EBITDA and Adjusted net loss are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and that may not be comparable to similar measures presented by other companies. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and is further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company defines Adjusted net loss as net loss generated for the period as reported adjusted to remove changes in the fair values of derivative liabilities. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.

Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSaBIT is an early stage company with a short operating history; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations.

Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products and blockchain/cryptocurrency exchange technology generally, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.

Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.

Financial Outlook

This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s forecasted revenue, transaction sales for card services and gross profit for the 12 months to be ended December 31, 2022 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements” herein. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward-Looking Statements” herein, it should not be relied on as necessarily indicative of future results.

ABOUT POSABIT

POSaBIT (CSE: PBIT) is a financial technology company that delivers unique and innovative, blockchain-enabled payment processing and point-of-sale systems for cash-only businesses. POSaBIT specializes in resolving pain points for complex, high-risk, emerging industries like cannabis with an all-in-one solution that is compliant, user-friendly and utilizes top-of-the-line hardware. POSaBIT’s unique solution provides a safer and transparent environment for merchants while creating a better overall experience for the consumer. For additional information, visit: www.posabit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005353/en/

Contacts

Investor Relations:
[email protected]

Media Relations:
Oscar Dahl
855-767-2248
[email protected]

Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
855-767-2248
[email protected]

Hayden IR
James Carbonara
(646) 755-7412
[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.

In the news release, Body and Mind Reports Q2 FY2022 Financial Results, issued 18-Mar-2022 by Body and Mind Inc. over CNW, we are advised by the company that in the Q2 FY2022 Financial Summary section, 6th bullet, an error as occured. Instead of ”0,04 million”, we should have read ”0.40 milllion”. Also, in the 9th bullet, instead of ”$55,93 million’, we shoudl have read ”$53,93 million”. The complete, corrected release follows:

Body and Mind Reports Q2 FY2022 Financial Results

27% year-over-year revenue growth, 6% sequential quarter-over-quarter revenue growth – Positive operational cashflow – Management to host earnings call March 18th

LAS VEGAS and VANCOUVER, BC, March 18, 2022 /CNW/ – Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) (the “Company” or “BaM“), a multi-state US cannabis operator, is pleased to report its financial results for the second fiscal quarter ended January 31, 2022.

Q2 FY2022 Financial Summary (results expressed in USD$ unless otherwise indicated):

• Reported Q2 FY2022 revenue of $8.05 million a 27% increase over Q2 FY2021 revenue of $6.32 million and a 6% increase over Q1 FY2022 revenue of $7.57 million;
• Q2 FY2022 Gross profit of $3.02 million, a 10% increase over Q2 FY2021 Gross profit of $2.75 million;
• Q2 FY2022 Net Operating Loss of $0.97 million;
• Q2 FY2022 Net Loss of $2.72 million;
• Basic and Diluted loss per share of $0.02;
• Adjusted EBITDA loss of 0.40 million*;
• Inventory of $4.07 million as of January 31, 2022;
• At January 31, 2022, BaM had $4.62 million in cash and a working capital surplus of $4.07 million;
• Total Assets were $53.93 million, Total Current Liabilities were $8.42 million and Total Liabilities were $21.20 million at January 31, 2022;
• 113,349,464 shares of common stock outstanding as of January 31, 2022 (113,349,464 as of March 17, 2022).

Operational Milestones for Q2 FY2022:

California:

• Definitive agreement entered for acquisition of Seaside, California dispensary;
• The Company took over management of Seaside dispensary operations effective December 1, 2021;
• Local and State approval of change in ownership of the Seaside dispensary license received;
• Consolidation of financials from Seaside dispensary for December 2021 and January 2022;
• Rebranded the Long Beach ShowGrow dispensary to become a Body and Mind branded dispensary;
• Manufacturing and Distribution facility in development stage with local approvals in process.

Nevada:

• Completion of electrical power upgrade and distillation capacity project for Production facility to provide 10X increase in distillation capacity;

Ohio:

• Increased production from the new Ohio production facility;
• Body and Mind branded extracted products on dispensary shelves with an expanded product line in progress;
• Secured high quality biomass for extracted products including shatter and live resin offerings.

Arkansas:

• Cultivation operations produced first flower for wholesale and sales in Body and Mind dispensary;
• Finalized phenotyping of Body and Mind strains and perpetual harvest operations established.

Michigan:

• Continued vertical market expansion into Michigan;
• Opened Muskegon, Michigan dispensary in February 2022;
• Commenced construction to advance a Phase 1 cultivation and production facility with approximately 22,500 square feet of indoor cultivation and 7,500 square feet of production/manufacturing;
• Confirmed initial power requirements are complete to the cultivation facility and pre-ordered long lead items;
• Completed demolition within the existing structure, underground plumbing and concrete work for flooring and footings is underway.

Illinois

• The Company has management agreements with two entities that have been identified in the Illinois Department of Financial and Professional Regulation (IDFPR) results of the Social Equity Justice Lottery as recipients of Conditional Adult-Use Cannabis Dispensary Licenses (Conditional Licenses) in the greater Chicago-area zone;
• Final license awards by the Illinois Department of Financial and Professional Regulation (IDFPR) delayed due to litigation by other parties;
• Identified and advanced strong real estate opportunities for dispensary locations.

“The Body and Mind team continued our growth strategy by funding the acquisition and consolidating the new Seaside, California dispensary as well as funding and opening our social equity license dispensary in Michigan. Our positive cash flow from operations reflects our commitment to lean, focused advances as we continue to grow our revenues with new operations in strong markets,” stated Michael Mills, CEO of BaM. “Our operations team has been working closely with the new Reef dispensary as the Company assumed operations in December and we have realized synergies across our California operations. The new Michigan Body and Mind branded dispensary opened in February and continues to ramp-up revenues. The Michigan cultivation and production facility is advancing well and has received all construction approvals with demolition complete, underground plumbing in place, and concrete pours for floors and footings progressing. We have expanded the Body and Mind brand through new product offerings in Ohio and Arkansas and will continue to develop our product lines in these limited license states.”

*Adjusted EBITDA is a Non-GAAP metric used by management that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management defines the Adjusted EBITDA as the income (loss) from operations, as reported, before interest, taxes, and adjusted for removing other non-cash items, including the stock-based compensation expense, depreciation, and further adjustments to remove acquisition related costs or gains. Management believes Adjusted EBITDA is a useful financial metric to assess its operating performance on a cash adjusted basis before the impact of non-cash items and acquisition activities. The most comparable financial measure calculated and presented in accordance with U.S. GAAP is net income (loss) from operations, which was presented above prior to the Adjusted EBITDA figure.

The unaudited condensed consolidated interim financial statements for the quarter ended January 31, 2022 are available on SEDAR and EDGAR and should be read in connection with this news release.

The Company will be hosting a conference call to discuss its financial results on Friday, March 18th, 2022, at 2:00 p.m. Eastern Time.

Conference call details:

Canada: 1-416-764-8659

North America toll-free: 1-888-664-6392

Confirmation No.: 37292270

A replay of the call will be available until March 25, 2022. The replay can be accessed as follows.

Encore replay — Canada: 1-416-764-8677

Encore replay — North America toll-free: 1-888-390-0541

Encore replay entry code: 292270 #

About Body and Mind Inc.

BaM is an operations focused US multi-state cannabis operator investing in high quality medical and recreational cannabis cultivation, production and retail.

BaM continues to expand operations in Nevada, California, Arkansas, Ohio and Michigan and is dedicated to increasing shareholder value by focusing time and resources on improving operational efficiencies, facility expansions, state licensing opportunities as well as mergers and acquisitions.

Our wholly owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licenses and holds cultivation and production licenses. BaM products include dried flower, edibles, oils and extracts as well as GPEN Gio cartridges. BaM cannabis strains have won numerous awards including the 2019 Las Vegas Weekly Bud Bracket, Las Vegas Hempfest Cup 2016, High Times Top Ten, the NorCal Secret Cup and the Emerald Cup.

Please visit www.bodyandmind.com for more information.

Instagram:@bodyandmindBaM
Twitter: @bodyandmindBaM

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of activities, variations in the underlying assumptions associated with the estimation of activities, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

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.

2021 Net Revenue Increased 44% Year-over-Year

All Licenses for Phase I Retrofit of SoCal Cultivation Facility Received, with First Harvest Expected During Q3 2022

Conference Call to be Held March 17, 2022 at 8:00 a.m. ET

LONG BEACH, Calif. and TORONTO, March 17, 2022 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today reported financial results for its fourth quarter and year ending December 31, 2021.

Fourth Quarter 2021 and 2021 Full Year Highlights
(Unaudited results, unless otherwise stated, all results are in U.S. dollars)

• Net Sales increased 7% to $18.4 million in Q4 2021, compared to $17.2 million in Q3 2021. In 2021, net sales increased 44% to $69.4 million from $48.3 million in 2020.
• Equivalent Dry Pound Production in Q4 was a record high of 29,738 pounds compared to 28,268 pounds in Q3 2021.
• Cash balance was $51.1 million at year-end 2021, compared to $28.9 million in Q3 2021 and $4.5 million at year-end 2020.
• Gross Profit decreased 116% to $(0.4) million in Q4 2021 compared to $2.3 million in Q3 2021. In 2021, gross profit was $16.0 million compared to $18.7 million in 2020.
• Gross Margin in Q4 2021 was (2)% compared to 14% in Q3 2021. Gross margin in 2021 was 23% compared to 39% in 2020.
• Adjusted EBITDA¹ decreased 71% to $(9.1) million in Q4 2021 compared to $(5.4) million in Q3 2021. In 2021, Adjusted EBITDA was $(11.8) million, compared to $(0.3) million in 2020.
• Adjusted EBITDA Margin¹ was (50)% in Q4 2021, compared to (31)% in Q3 2021. In 2021, Adjusted EBITDA Margin was (17)%, compared to (1)% in 2020.
• Cost per Equivalent Dry Pound of Production¹ fell 7% sequentially to $166 in Q4 2021.

Management Commentary

“With the first phase of our SoCal cultivation facility operational; and its construction on time and on budget; and the receipt of our nursery, cultivation and processing licenses, we are well on our way to becoming the top vertically integrated operator in California,” stated Kyle Kazan, Glass House Chairman and CEO. “I am delighted with our progress and thrilled to have started cultivation, with the first product sales expected in the third quarter, ahead of our initial projections.”

Mr. Kazan added, “Looking at the quarter, despite a destructive wholesale pricing environment in California, we exceeded our original projections for top line revenue growth driven by a 31% increase in wholesale biomass sales versus Q3. Demand for our high-quality products has remained robust; and as our new facility gets up and running, we will be ready to meet it. We expect our Phase I retrofit at our SoCal facility to increase our annual production capacity by 180,000 pounds, bringing our overall total capacity to 270,000 pounds.”

Mr. Kazan continued, “We have been expecting the commoditization of cannabis and related pricing pressure since we founded the Company. Consolidation has always been our thesis, and the distress in the market is what consolidation looks like. Wholesale flower prices are unsustainably low in California, and the other states which have experienced similar pressure bottomed before rising to a level which supports efficient cultivators. Growers of all sizes will be forced to discontinue operations unless they can find a way to decrease their costs. For this reason, I am particularly thankful that we leaned into the SoCal Facility, which should do exactly that. We expect our margins and top line growth to be directly and positively affected as we expand cultivation.”

Mr. Kazan concluded, “This is a tremendous time for Glass House, and I am incredibly proud of the efforts of our team and all the successes we have accomplished together. Looking ahead, we are more ready than ever to meet the opportunities of 2022. We are focused on building exceptional brands, growing the breadth and depth of our product portfolio and retail store network, and we remain confident in our ability to be a best-in-class and influential market leader in the maturing California market. Our commitment to innovation and high-quality, sustainably grown craft cannabis sets us apart from every other operator, and we are excited by the opportunity ahead as we strengthen our footprint and drive value for our shareholders.”

Q4 2021 Financial and Operational Metrics

Fourth Quarter 2021 Operational Highlights

Subsequent Events

Participation in Broker and Industry Conferences

• March 13^th to 15^th – 34^th Annual Roth Conference 2022
• March 15^th to 19^th – South by Southwest
• April 6^th – 7^th – BTIG Global Cannabis Conference
• June 2^nd – Jefferies Cannabis Summit

Q4 2021 Financial Results Discussion

Revenue was $18.4 million, an 8% increase compared to Q4 2020 and a 7% increase compared to Q3 2021. The sequential revenue growth was driven by wholesale biomass sales, which increased 31% over Q3 2021. Performance by business line was:

• Retail: $5.1 million, down 2% quarter-over-quarter and up 38% year-over-year. The year-over-year increase was due to the addition of the Farmacy Berkeley in early 2021, which generated $1.7 million in net retail revenues in Q4 2021.
• Wholesale CPG: $6.7 million, down 4% quarter-over-quarter and up 5% year-over-year. CPG’s decline was lower than the overall market decline for flower of 11%, based on Headset data.
• Wholesale Biomass: $6.5 million, up 31% quarter-over-quarter and down 5% year-over-year. The sequential revenue growth was enabled by a 27% increase in dry weight sold versus the prior quarter.

Cost of goods sold was $18.7 million in Q4 2021, a 26% increase from $14.8 million in Q3 2021 and an 85% increase from $10.1 million in Q4 2020. The quarter included $3.0 million of non-cash expenses related to inventory reserves for obsolete or slow-moving product as well inventory revaluation of our biomass live plants to lower values to reflect current production costs. The aforementioned 27% sequential increase in dry weight sold also contributed to the quarter-over-quarter increase in COGS.

Gross profit for Q4 2021 was $(0.4) million, a 116% decrease from $2.3 million in Q3 2021. Gross margin was (2)%, compared to 14% in Q3 2021. The $3.0 million non-cash expenses described above reduced gross margin by 16 percentage points. In addition, average pricing for our flower fell 27% versus Q3 2021 while smalls dropped 59%. Had Q3 2021 prices held into Q4, revenues and gross margin would have been $3.2 million higher, increasing margins by an additional 15 percentage points in Q4 2021.

Total operating expenses for Q4 2021 were $19.3 million, compared to total operating expenses of $11.9 million for Q3 2021 and $6.9 million in Q4 2020.

G&A expenses were $13.5 million in Q4 2021, compared to $8.5 million in Q3 2021 and $5.2 million in Q4 2020. The current quarter included $3.2 million of non-operational notes receivables charged to bad debt reserve. Of this reserve, $2.2 million is related to the Element 7 transaction and an additional $1.0 million is related to a note issued to our Pottery venture. There is an additional $1.0 million G&A expense related to startup costs associated with our SoCal facility and expansion of our retail footprint during the quarter.

Q4 2021 sales and marketing expenses were $1.2 million, a $0.3 million increase over Q3 2021 and a $0.8 million increase over Q4 2020. The sequential increase in sales and marketing expenses compared to Q3 2021 were primarily due to seasonal promotions, digital marketing, and trade marketing.

Professional fees were $2.1 million in Q4 2021, compared to $1.7 million in Q3 2021 and $0.5 million in Q4 2020. The sequential increase in professional fees was due to spending to support various expansion initiatives.

Q4 2021 depreciation was $2.5 million, compared to $0.8 million in Q3 2021 and $0.7 million in Q4 2020. The sequential increase in depreciation is primarily due to capital expenditures at the SoCal Facility.

Adjusted EBITDA¹ was a loss of $9.1 million in Q4 2021 compared to a loss of $5.4 million in Q3 2021 and $1.3 million gain in Q4 2020. The sequential decrease of $3.8 million was primarily caused by lower wholesale pricing and inventory reserves in Q4 2021 that negatively impacted gross margin.

Cash and cash equivalents were $51.1 million as of December 31, 2021, compared to $28.9 million as of September 30, 2021 and $4.5 million as of December 31, 2020.

Year End 2021 Financial Results Discussion

Revenue for 2021 was $69.4 million, an increase of $21.2 million, or 44%, from $48.3 million in 2020, primarily due to an increase in the Company’s CPG business and retail operations. The increase was driven primarily by the Company’s CPG business which increased 93% as a result of the strong growth in Glass House Farms branded sales. Retail sales increased by 50%, driven mainly by the full year impact of the Company’s Berkeley store, which opened in January of 2021 and produced $6.8 million in revenue during the year. Wholesale biomass revenue increased 8% but was negatively impacted by large declines in wholesale prices, particularly during the second half of 2021. On average for the fiscal year, the Company experienced a 38% decrease in flower prices and 45% decrease in smalls between 2020 and 2021. Had 2020 prices held throughout 2021, revenues would have been $12.1 million higher.

Gross margin for fiscal 2021 was 23% compared to 39% for the 2020 fiscal year 2020. The decrease in average biomass pricing in fiscal 2021 vs. 2020, most of which occurred in the second half of 2021, accounted for the majority of the 16 point decrease in gross margin during the year. Gross margin was also negatively impacted by the earlier referenced inventory reserves and revaluations.

Total operating expenses for 2021 were $51.1 million, an increase of $26.4 million, or 107%, compared to total operating expenses of $24.7 million for 2020. G&A expenses for 2021 and 2020 were $33.7 million and $18.6 million, respectively, an increase of $15.1 million, or 81%. The increase in G&A expenses is primarily attributed to the Company’s initiatives in connection with operational expansion, including corporate, cultivation and retail operations, which resulted in an increase of $8.3 million across salaries and wages, stock-based compensation and IT consulting fees.

Sales and marketing expenses for 2021 and 2020 were $3.5 million and $1.5 million, respectively, an increase of $2.0 million, or 137%. The increase in sales and marketing expenses is primarily attributed to the increase in the Company’s efforts related to digital media, marketing research and royalty expenses of $0.6 million.

Professional fees for the year ended December 31, 2021 and 2020 were $9.1 million and $2.0 million, respectively, an increase of $7.0 million, or 345%. The Company recognized increased legal fees of $2.4 million coupled with increased accounting and consulting professional fees of $4.9 million, primarily related to the business combination transaction, SoCal asset acquisition and other initiatives that occurred during 2021.

Adjusted EBITDA¹ was a loss of $11.8 million for 2021, compared to a loss of $0.3 million for 2020. The increase is due to a lower gross profit coupled with higher non-excludable operating expenses.

Financial results and management’s discussion and analyses are available on the Company’s investor relations website (https://ir.glasshousegroup.com/) and SEDAR (www.sedar.com).

SoCal Cultivation Facility Update

The Company received the necessary licenses to operate Phase I of the SoCal facility on March 11th, including all California State licenses for nursery, cultivation, and processing operations; and the local cannabis business license from Ventura County. Glass House has already commenced nursery activities, and projects the first harvest and sale will occur in the third quarter of this year.

Phase 1 includes approximately 500,000 square feet of nursery facilities, an approximately 900,000 square-foot Kubo ultra-clima high-efficiency greenhouse, a processing center and a new distribution center. The Phase 1 retrofit is expected to enable the Company to produce an additional 180,000 dry pounds of craft cannabis. The Company expects that the SoCal facility will allow it to significantly reduce cost of production, and eventually achieve $100 per pound.

Retail Rollout Update

The Company expects to open three dispensaries in the second half of this year. The Eureka location is expected to open in the third quarter; and Isla Vista and Santa Ynez are expected to open in the fourth quarter. This is later than projected in the Company’s Q3 2021 results press release and is due to delays in the construction permitting process. The Eureka location extends Glass House’s retail reach into the heart of the Emerald Triangle. Isla Vista and Santa Ynez are in prime areas that are both limited to a single license, and these dispensaries will offer the same award-winning customer experience as the Company’s existing stores. All three of these properties will be branded as Farmacy locations. Glass House previously expressed its intention to open a Farmacy location in Dunsmuir, however, after additional due diligence, it decided not to pursue the Dunsmuir license.

PLUS Acquisition Update

Late last year, the Company announced a definitive agreement to acquire the business of Plus Products Inc. (“PLUS”), through the acquisition of 100% of the outstanding securities of its subsidiary Plus Products Holdings Inc. PLUS is one of the state’s top ranked brands in the edibles segment, such that the Company’s acquisition of the PLUS business would be expected to place Glass House in a top 5 position in both the flower and edible categories. Glass House expects the transaction will close in April 2022.

2022 Outlook

With cultivation already started in our SoCal facility, Glass House is even more focused on the cash flow potential of the Company. Assuming wholesale and CPG pricing remain stable throughout this year and next, the Company is able to fully utilize the Phase 1 capacity of the SoCal Facility and that production will be commensurate with current production metrics, Glass House believes this will put the Company on a path to begin generating positive cash flow from operations by early 2023.

Sales Metrics

Operational Results

Conference Call

The Company will host a conference call to discuss the results on Thursday, March 17, 2022 at 8:00 a.m. Eastern Time.

About Glass House
Glass House is one of the fastest-growing, vertically integrated cannabis companies in the U.S., with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand-building to retailing, the company’s efforts are rooted in the respect for people, the environment, and the community that co-founders Kyle Kazan, Chairman and CEO, and Graham Farrar, President, instilled at the outset. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers, and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all. For more information and company updates, please visit www.glasshousebrands.com and https://ir.glasshousebrands.com/contact/email-alerts/.

Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, within the meaning of applicable securities laws (collectively referred to herein as “forward-looking statements”). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements, and are qualified in their entirety by this cautionary statement. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements contained herein include, but are not limited to, the Company’s expectation that it will be become the top vertically integrated operator in California; that the first product sales will occur in the third quarter, ahead of our initial projections; that as our new facility gets up and running, we will be ready to meet demand for our products; that our Phase I retrofit at our SoCal facility will increase our annual production capacity by 180,000 pounds, bringing our overall total capacity to 270,000 pounds; that growers of all sizes will be forced to discontinue operations unless they can find a way to decrease their costs; that the SoCal Facility, should decrease costs; that our margins and top line growth will be directly and positively affected as we expand cultivation; that we will be able to be a best-in-class business and influential market leader in the maturing California market; that opportunity lies ahead as we strengthen our footprint and drive value for our shareholders; that our first harvest and sale from our SoCal Facility will occur in the third quarter of this year; that the Phase 1 retrofit at the SoCal Facility will enable the Company to produce an additional 180,000 dry pounds of craft cannabis; that the SoCal facility will allow us to significantly reduce our cost of production and eventually lower production costs to $100 per pound; that the Company will open 3 dispensaries in the second half of this year; that the Eureka location will open in the 3rd quarter and Isla Vista and Santa Ynez locations are expected to open in the 4th quarter; that our proposed acquisition of PLUS’s business would be expected to place us in a top 5 position in both the flower and edible categories; that the PLUS transaction will close in April; that we will begin generating positive cash flow from operations by early next year.

Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, that the Company will not become the top vertically integrated operator in California; that the expected timing for first product sales, the opening of new dispensaries and the generation of positive cash flow from operations will not occur on the timeline expected, or at all; that the retrofit being completed at our SoCal Facility will increase production capacity as expected or decrease costs as stated; that the Plus transaction will close in April; and such other risks as are set out in the Company’s public filings available under the Company’s profile on SEDAR at www.sedar.com.e. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE Glass House Brands 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.

Vancouver, British Columbia – December 30, 2021 – Lotus Ventures Inc. (CSE: J) (OTC: LTTSF) (“Lotus” or the “Company”), a trusted cannabis producer in Canada is pleased to report its Fiscal 2021 full year results and a second consecutive year reporting a profit for the year ended August 31, 2021.

• Full year revenue increased to $5.4 million up 18 percent compared to the prior year.

• Fourth quarter revenue of $1.2 million, a decrease compared to the prior year due to the Company realizing a more consistent Fair Value on Biological Asset accounting process.

• Lotus achieved positive EBITDA and positive net income in each of the first two years of production. One of the unique publicly traded licensed producers to accomplish this in the first three years of Canadian adult-use legalization.

• Gross margin before fair value adjustments for the full year ended was 45 percent.

• The Company is in the final stages of securing non-dilutive financing with an institutional lender for Phase 2 of the Controlled Environment Agriculture facility located near Armstrong, B.C.

“Lotus’ continued growth this year demonstrates our operating strength and resilience, and it couldn’t be done without the commitment from our whole team,” said Dale McClanaghan, President & CEO, Lotus. “Our Fiscal 2021 was a year of modest growth, as we sold over 2 million grams of cannabis and reached the milestone of $10 million in sales since we first started two years ago. Fueled by our expansion growth in the North Okanagan, we are excited to invest in additional growing capacity to expand our premium cannabis portfolio and supply more unique and premium strains like our Kalifornia in the new year.”

The following selected financial information is derived from the Company’s audited financial statements for the years ended August 31, 2021, 2020 and 2019.

During the year ended August 31, 2021, the Company had net income of $241,097 (2020 – $1,494,002). The financial results of the Company for the eight most recent quarters are summarized below:

The Annual Financial Statements and Management Discussion and Analysis for the year ended August 31, 2021, is available on sedar.com

ON BEHALF OF THE BOARD:
Lotus Ventures Inc.
“Dale McClanaghan”
Dale McClanaghan, President and CEO

About Lotus Ventures Inc. (CSE: J)
Lotus Ventures Inc. is a licensed cannabis producer and the owner of Lotus Cannabis Co., a premium consumer brand in Canada. The Lotus team specializes in commercial cannabis production using a Controlled Environment Agriculture facility built in the North Okanagan of British Columbia.

Lotus has reached consumers in nine provinces to date through wholesale relationships across Canada and our flower has been sold in both the premium and ultra-premium segments of the market by wholesale partners. Lotus looks to launch its own product offerings in the recreational market over the next year and has several unique strains in development.

Lotus Ventures Inc. is listed on the Canadian Securities Exchange under the symbol J and on the OTC Markets under the symbol LTTSF.

For Further Information:

President & CEO
Dale McClanaghan
[email protected]
604-644-9844

Investor Relations
Daniel McRobert
[email protected]
604-842-4625

To learn more, visit our website at lotuscannabis.ca or follow our brand on social media.

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.