NORWOOD, Mass., May 08, 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 first quarter ended March 31, 2023.

“I am pleased to report another solid quarter,” said Jon Levine, Chief Executive Officer. “We reported our 13th consecutive quarter of positive adjusted EBITDA, and we expect to generate our fourth consecutive year of positive operating cash flow. MariMed is one of the only companies in the cannabis industry to report positive cash flows and positive EBITDA over this extended period of time.”

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.

CONFERENCE CALL

MariMed management will host a conference call on Tuesday, May 9, 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 Q123 Earnings Call.

FIRST QUARTER 2023 OPERATIONAL HIGHLIGHTS

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

• January 24: Closed a $35 million senior secured credit facility with a $30 million draw down at close and the ability to draw up to an additional $5 million through June 2023. The facility has a three-year maturity and bears interest at a rate of prime plus 5.75%. Funds are expected to be used for capital expenditures, other corporate expenses, and acquisitions.
• March 13: Closed the acquisition of the operating assets of Ermont, Inc., pursuant to which the Company obtained a vertical cannabis operation in Quincy, MA and rebranded the retail operation to Panacea Wellness Dispensary. MariMed intends to expand the dispensary to accommodate adult use sales, which the company has applied for with the State Cannabis Commission.

OTHER BUSINESS DEVELOPMENTS

Subsequent to the end of the first quarter, the Company announced the following business developments:

• April 4: The Maryland Medical Cannabis Commission issued approval to once again manufacture and sell high-dose edibles. The Company plans to add 40mg products across its entire edibles portfolio including Betty’s Eddies and Bubby’s Baked.
• April 25: Opened an adult-use Panacea Wellness Dispensary in Beverly, Massachusetts, marking the Company’s third operational dispensary in the state, and the tenth dispensary it owns or manages. The Company plans to obtain a license for medical sales at this location.

“Our financial results for the first quarter were very strong and we are maintaining our positive outlook and guidance for 2023,” said Susan Villare, Chief Financial Officer. “We continue to execute on our plan to improve efficiencies and we were pleased to report a sequential improvement in our non-GAAP gross margins of 100 basis point and a 58% increase in our adjusted EBITDA. Our balance sheet remains conservatively leveraged and our ability to generate positive cash flows from operations remains a core strength of the Company.”

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 unchanged:

• Revenue of at least $150 million;
• Gross margin in line with full year 2022, which was about 48%;
• Non-GAAP Adjusted EBITDA of at least $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 net income, determined in accordance with GAAP, excluding the following items:

• interest income and interest expense;
• income taxes;
• depreciation of fixed assets;
• amortization of acquired intangible assets;
• Impairment or write-downs of intangible assets;
• stock-based compensation;
• legal settlements;
• acquisition-related and other;
• other income and other expense;
• and discontinued operations.

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.

SEATTLE, Oct. 18, 2022 (GLOBE NEWSWIRE) — Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, today announced the filing of its unaudited financial statements for its 3^rd Quarter ended August 31, 2022.

“Q3 2022 shows material signs of improvement over Q2 2022 reflecting our ongoing operational focus. As stated before, we continue to pursue our strategic goals even during these difficult market conditions as evidenced by our recent agreements on terms for the acquisition of the Emerald City Cultivation and Dabco brands. Our operational and financial focus on rationalizing our business, shedding underperforming assets, and increasing production yields by our independent cultivators continues to proceed and have allowed us to continue with additional market share capture. Investing in Cannabis is not for the faint of heart and we believe we are building a solid foundation for years to come which takes time, patience, and relentless focus on fundamentals. In an industry that does not have access to traditional financing, our options are limited and expensive,” said German Burtscher, Pervasip’s CEO. “We slowed the rollout of our new concentrate brands which we licensed for Q3 deployment and instead focused on an outright acquisition as the opportunity became available. That resulted in not meeting the forecasted revenue from the new product lineup for Q3. We are also pursuing a conservative approach to working within the complicated tax environment our industry is confronted with. Ongoing work in support of the audit process and a recent court ruling that impacts the cannabis industry caused us to change our estimates for tax liability dating back to prior periods 2017 – 2020, which we booked in Q3.”

The Company continues to focus on moving available bulk inventory into higher margin brands with a focus on margin capture and is seeing promising early results.

Third Quarter 2022 Financial Results

Q3 2022 versus Q2 2022

Q3 2022 operating results improved over Q2 2022, tracking with ongoing efforts to shift bulk sales to higher margin brands combined with relative COGs reductions, even when adjusted for inventory.

SG&A expenses are slightly reduced, reflecting more of the ongoing restructuring of the business.

Q3 2022 versus Q3 2021

The key to a meaningful comparison of end of period August ’22 to August ’21 is to recognize that August ’21 was at the height of Pandemic exuberance, recording the highest monthly sales across the entire industry. A key comparison to better understand the challenge and how the company’s brands have been gaining market share is to look at weight sold in grams and compare resulting revenue. It shows a 42% increase in product sales but a 6% decrease in comparable revenue. The company has answered price pressures with a multi-faceted strategy which allows for share capture while introducing higher margin brands and product lines.

Onetime adjustments

The Company’s ongoing audit work has also produced several tax adjustments from prior years, dating back to 2017. Due to the net operating loss carryforward, Pervasip did not recognize income tax expense in the nine-month periods ended August 31, 2022, and 2021. However, the VIEs that are included in the consolidated financial statements, have recorded a tax expense and a current income tax liability. Recent court cases regarding the interpretation of IRC 280E have made it more likely than not that the net operating loss deduction in the VIEs would be disallowed. Consequently, the company recorded tax provisions for its VIEs. Rather than re-stating prior years the Company decided to account for all adjustments in this quarter. Of the $1,503,376 booked in the Income Statement, $686,688 is tax and penalties from previous years and the rest estimated taxes for 2022 year to date.

In addition, $589,485 in Other Expenses in the Income Statement, includes a $342,000 tax adjustment from 2017 legacy payroll tax and a $163,718 charge from Pervasip which is from loss on debt conversion with Mammoth and derivatives.

Accrued expenses of $1,066,575 includes $254,549 in utility rebate contingency. That contingency will be lifted in Q4 as final commissioning by the utility was completed after the third quarter close and a full rebate of $288,000 was approved.

Key Highlights

• Instead of focusing on a rollout of licensed Dabs and Vape4Less brands, the Company pursued an outright acquisition of those brands plus others, achieving more beneficial long-term value but not yet realizing respective revenue gains as indicated earlier.
• Q3 shows margin improvement over Q2 as higher margin brands and products are coming online, a trend that will continue into Q4 2022.
• The Company continues to pursue additional operational, financial, and legal restructuring to further clean and strengthen its balance sheet.
• While expensive, the Company will continue to seek capital from available equity or debt sources.

The cannabis market on the Westcoast continues to see a dramatic post-pandemic retraction, creating a challenging environment for all producers, processors, and retailers. With an almost 18% contraction in retail revenues, massive oversupply, sustained downward price pressure and increasing costs, the industry is still months away from a recovery, although the bottom for pricing seems to have been reached.

Pervasip Corporation
Pervasip Corp., a developer of companies and technologies in high value emerging markets, owns Artizen Corporation and its subsidiary, Zen Asset Management LLC, a diversified asset management company founded to acquire, develop, and support companies and technologies in the cannabis industry. ZAM’s existing clients operate four licensed cannabis cultivation and one processing facility in Washington. Most of the biomass produced by these independent cultivators has been sold historically under the Artizen brand, including all-time top selling products in flower in Washington state. Additional information on Artizen-branded products is available online at www.artizencannabis.com. Pervasip additionally owns 5% of KRTL Biotech, Inc., a developer of biotechnologies with a focus on pharmaceutical applications of cannabinol and psilocybin. Additional information on KRTL is available online at www.krtlbiotech.com. Additional information on Pervasip can be found at www.pervasip.net.

Forward-Looking Statements
This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives, or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as may, would, could, will, likely, except, anticipate, believe, intend, plan, forecast, project, estimate, outlook, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company’s business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company’s ability to secure financing on reasonable terms. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company’s periodic disclosure statements. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.

For further information, please contact:
T: 206-590-2408, Extension 102
E: [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.

LOS ANGELES, CA / ACCESSWIRE / April 19, 2022 / Marijuana Company of America, Inc. (OTC PINK:MCOA) (“the Company”), operates, invests, and acquires companies exclusively in the cannabis sector, today announced the financial results for the year ended December 31, 2021, as reported in its annual report on Form 10-K. Here are some of the notable highlights for the FY2021:

• Record revenues for the year end December 31, 2021 were $1,030,249 or an increase of 267.1 percent.
• The Company lowered its operating expenses by 2.2 percent by becoming more efficient and making better cash flow decisions.
• Significant efforts to expand into South America and move key parts of supply chain to Brazil and Uruguay to improve gross margins and overall profitability.
• MCOA paid off most variable priced convertible notes prior to conversion over the last quarter with funds raised from its Form S-1 registration statement.
• The Company successfully negotiated a full settlement of its largest senior convertible note holder at a fixed price, preserving shareholder value and minimizing the impact of the dilutive nature of the notes, resulting in a decrease of the derivative liability from $4,426,057 in 2020 to only $749,756 for the year ended December 31, 2021.
• MCOA has successfully negotiated and completed acquisitions including cDistro, Inc. that resulted in the Company’s market capitalization increasing substantially during the year to enhance shareholder value.
• The Company’s total stockholder equity increased from a negative $5,461,367 deficit for the year ended December 31, 2020 to an actual stockholder’s surplus of $230,889. This is the first time in the Company’s history that it has had a positive equity position and is solvent. The Company is getting close to being a “Penny Stock” exempt company, which requires more than $2M in net assets. It plans on achieving this milestone in Q2 or Q3 this year.
• The Company’s total assets increased by $5,853,405 from $2,106,494 in 2020 to $7,959,899. The Company expects its assets to continue to increase exponentially if the pending acquisition of VBF closes, as well as with the continued increase in positive operating results.

Total revenues for the year end December 31, 2021 and December 31, 2020, were $1,030,249 and $280,653, respectively, an increase of $749,596 or 261%. This increase is attributed to the Company’s hempSMART product lines and new line of businesses including cDistro, Inc., a distributor of hemp and CBD products, and equipment lease rental from new joint venture.

MCOA’s Chief Executive Officer, Jesus Quintero, said, “We are excited to have commenced deployment of our new acquisitions, streamlining of our businesses and expansion into consumer markets domestically as well as internationally. Our Company has begun its new path to historical results and success. The new positive trends also complement the political market as the U.S. Congress drives toward the legalization of Cannabis, and we are proud to be part of this trend.”

Quintero added, “This year we had been active in our acquisitions that fall into a few different cannabis categories. MCOA is currently in the process of finalizing the acquisition of VBF Brands, Inc., pending regulatory approval which we expect to complete in early 2022. The Company continued to pursue deals to build scale in its existing markets while continuing to look at opportunities that continue to grow our national footprint in the U.S. as an MSO, as well as in emerging markets such as Brazil and Uruguay. This is an exciting time to be part of MCOA, as we enter 2022 with a stronger balance sheet to accelerate our operations and continue to build shareholder value.”

For the year ended December 31, 2021 and December 31, 2020, gross profit was $156,878 and $121,349, respectively. This increase was attributed to MCOA’s hempSMART products and the cDistro, Inc. acquisition. Gross margins were 15.2% and 43.2% for the years ended December 31, 2021 and December 31, 2020, respectively. This decline in gross margins is due to cDistro being a distribution company that experiences slim margins as a reseller.

For the year ended December 31, 2021, operating losses were $4,711,133 which is a 2.2. percent decrease from operating losses of $4,854,891 for the year ended 2020. This decrease is attributed to the Company’s ability to manage expenses and accordingly become more operationally efficient.

Net losses for the year ended December 31, 2021 and December 31, 2020 decreased by 28% to $10,191,450 for 2021 as compared to $12,145,382 in 2020. This represents a decrease in net losses of approximately $2M for the year ended December 31, 2021 as compared to December 31, 2022.

MCOA believes the reduced operating losses incurred in 2021, as compared to 2020, reflect the effectiveness of the Company’s management team in 2021. MCOA expects to continue to reduce its losses as it continues to implement its plan for new sales strategies and cost-cutting measures in the near future until profitability is achieved. The Company plans on utilizing more funds from operations to cover its obligations rather than relying on dilutive equity and debt financing going forward.

For further information on Form 10-K, please visit www.sec.gov. Further details regarding the year ended 2021, will soon be made available in the investor relations section of the Company’s website at www.marijuanacompanyofamerica.com.

Forward-Looking Statements

This news release contains “forward-looking statements,” which are not purely historical and may include statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as “anticipate,” “seek,” “intend,” “believe,” “estimate,” “expect,” “project,” “plan,” or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s” reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.

For more information, please visit www.marijuanacompanyofamerica.com or visit www.sec.gov.

CONTACT:
[email protected]
[email protected]
888-777-4362

SOURCE: Marijuana Company of America 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.

TORONTO, April 1, 2022 /CNW/ – Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) today announced its financial and operational results for the fourth quarter (“Q4 2021”) and full year ended December 31, 2021 (“FYE 2021”).

Fourth Quarter 2021 Financial Highlights:

• Revenue of $8.4 million, up $3.2 million, or 63%, compared to $5.1 million in Q4 2020.
• Sales of nearly 13 million grams of cannabis products principally to dispensaries in Oregon and California, a 345% year-over-year increase compared to Q4 2020.
• Adjusted gross margin¹ was $0.8 million, or 9.6% gross margin, compared to $0.5 million, or 10.5% gross margin, in Q4 2020.
• Adjusted EBITDA¹ loss of $7.1 million compared to a loss of $3.7 million in Q4 2020.

Full Year 2021 Financial Highlights:

• Revenue of $36.2 million, up $14.5 million, or 67%, compared to $21.6 million in 2020.
• Sales of over 32 million grams of cannabis products principally to dispensaries in Oregon and California, a 381% year-over-year increase compared to 2020.
• Adjusted gross profit¹ was $7.3 million, or 20.1% gross margin, compared to gross profit of $5.2 million, or 24.0% gross margin, in 2020.
• Adjusted EBITDA¹ loss of $23.6 million compared to a loss of $6.9 million in 2020.

“Halo’s team is actively building significant shareholder value, even while the operating conditions remain difficult in the California and Oregon markets and pressuring our near-term financial performance,” said CEO Kiran Sidhu. “In our growing wholesale businesses, volumes are trending upward due to higher sales velocity and expanded market penetration, offsetting much of the downward pressure on prices and positioning us well for when pricing stabilizes. In our retail business, we’ve opened our first Budega dispensary in North Hollywood, California, and are seeing solid preliminary results in the first weeks of operation. Meanwhile, we have taken the necessary steps to rationalize the business to accelerate our path to profitability.”

Added Sidhu, “What’s less apparent in the financials is the significant value that we are creating through our incubation efforts within our collective of assets. Take Akanda Corp. as an example. In 2020 we purchased two disparate international cannabis assets, Bophelo Bioscience & Wellness and CanMart and, after completing a reorganization of these assets and putting in place a team, strategy and structure, Halo is now the largest shareholder in this rapidly scaling international medical cannabis company with a stake worth over $100 million based on Akanda’s current market capitalization. We are now assessing other opportunities with respect to Halo’s investments in cannabis businesses ancillary to our West Coast operations, including our investments in CBD and functional beverages, two of the fastest-growing categories in the consumer space that can be widely distributed.”

________________________________

¹ See “Non-IFRS Financial Matters” below for more information regarding the non-IFRS financial measures referred to herein.

Incubation Strategy Outlook

In fiscal 2022, Halo is planning to execute a strategy of incubating promising companies within the cannabis industry and the broader wellness space. Akanda Corp. (“Akanda”) is the most advanced in its execution but there are other initiatives at earlier stages underway with the Company’s interests in software, California cultivation, and CBD and functional beverages, that collectively the Company expects will enhance its financial strength.

• International Cannabis: On November 4, 2021, Halo sold its stake in Bophelo Bioscience & Wellness Pty. Ltd. (“Bophelo”), a Lesotho-based cultivation and processing campus located in the world’s first Special Economic Zone (SEZ) containing a cannabis cultivation operation, and CanMart Ltd. (“CanMart”), a UK-based fully approved pharmaceutical importer, and distributor that supplies pharmacies and clinics within the UK, to Akanda for 13,123,212 common shares of Akanda and a secured convertible debenture in favor of Halo in the principal amount of $6.6 million. As of December 31, 2021, Halo’s financial statements recorded a long-term investment of $10.5 million for its investment in Akanda. Akanda subsequently went public on The Nasdaq Capital Market on March 14, 2022, through an underwritten public offering of four million common shares at a public offering price of $4.00 per share. Halo currently holds 12,674,957 shares of Akanda, which, based on a closing price for Akanda shares of $7.94 on March 31, 2022, values Halo’s stake in Akanda at approximately $101 million.
• Software: Halo has acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. The Company intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. (“Halo Tek”) and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.
• California Cultivation: Halo maintains a 44% equity stake in Triangle Canna Corp. (“Triangle Canna”), the holder of 271 provisional licenses from the California Department of Cannabis Control, the state regulator, and which has plans to develop up to 63 acres of cultivation in California in partnership with Halo’s investment partner Green Matter. On November 10, 2021, Halo announced the planned $75 million Regulation A+ financing by Triangle Canna, which is being valued at $165 million prior to the completion of the financing. The financing has been qualified by the U.S. Securities Exchange Commission and is expected to launch in 2022. There can be no certainty as to the timing or success of Triangle Canna’s proposed Regulation A+ financing.
• CBD and Functional Beverages: Halo is also expanding into other consumer health and wellness categories expected to experience rapid growth in consumer demand, including functional supplements such as nootropic nutraceuticals and CBD gummies. Through the recent acquisition of Simply Sweet, a health-conscious, low-sugar cannabis infused alternative confectionery, the Company has a portfolio of proprietary recipes and formulas to leverage for infused gummy and candy production. The recent acquisition of H2C Beverages, a company focused on cannabinoids and non-psychotropic mushroom functional beverages, and the national distribution and manufacturing agreement with SWAY Energy Corporation (“SWAY”)(formerly Elegance Brands Inc.), provides the Company with brands and a route to market to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms.

California Retail Rollout Update

Halo’s “Seed to Sale” strategy in California accelerated as the Company delivered on its Los Angeles retail rollout in early 2022. On March 18, 2022, Halo announced that the first Budega dispensary officially opened in the Arts District of North Hollywood, California. This is the first of three Budega stores planned to open in Los Angeles. Located at the northwest corner of Lankershim Boulevard and Hesby Avenue, the store offers a vast product assortment of nearly 1,000 SKUs, including many top-tier California brands. In addition, the Company plans to launch retail delivery, which is expected to increase top-line sales and help capture overall market share.

Management anticipates opening stores in Westwood and Hollywood during in the spring and summer of 2022. Opening under the Company’s new retail brand, Budega, these stores are expected to meaningfully contribute to net revenue and gross profit.

Fourth Quarter 2021 Financial Results

Revenue
Revenues in Q4 2021 were $8.4 million compared to $5.1 million in Q4 2020, a 63% increase. Total sales were 13.0 million grams (Q4 2020: 2.9 grams), a 345% increase.

Revenue growth was mixed across the Company’s subsidiaries which include ANM Inc. (“ANM”), the owner of the Company’s facility in Oregon; Mendo Distribution and Transportation LLC (“MDT”), the owner of the facility in Ukiah; Coastal Harvest LLC (“Coastal Harvest”), Halo’s extraction facility in California; Halo Winberry Holdings, LLC (“Halo Winberry”), which operates a one-acre grow outside of Eugene, Oregon; and Halo Kushbar Retail Inc., the operator of three retail cannabis stores in the Canadian province of Alberta. ANM reported revenues of $2.4 million, a 40.8% decrease over Q4 2020. MDT reported revenues of $3.0 million, a 104.4% increase over Q4 2020. Coastal Harvest reported revenues of $1.0 million, compared to a reversal of $0.1 million in Q4 2020. Halo Winberry and Halo Kushbar Retail, whose results were not included in Q4 2020, reported revenues of $2.5 million and $0.7 million, respectively.

Gross Profit
The Company reported a gross loss of $1.3 million (Q4 2020: gross loss of $1.2 million). Adjusted for the loss on biological assets and impairments, gross profit was $0.8 million (Q4 2020: $0.5 million), with an adjusted gross margin of 9.6% (Q4 2020: 10.5%).¹

Adjusted EBITDA
The Company reported an Adjusted EBITDA loss of $7.1 million compared to a loss of $3.7 million in Q4 2020. ¹

Liquidity and Cash Balance
As of December 31, 2021, Halo had available cash in the amount of $1.7 million and approximately $0.1 million in restricted cash.

ANM
In Q4 2021, ANM, the owner of the Company’s facility in Oregon, sold 922,767 grams of shatter, cartridge oil, live resin, tinctures and gummies, flower, and pre-rolls (Q4 2020: 1,438,342 grams), a 35.8% decrease. Sales of oil and extracts were 280,674 grams (Q4 2020: 322,127 grams), a 12.9% decrease. The wholesale price of oils and extracts decreased by 11.4% to $6.45 per gram (Q4 2020: $7.29 per gram). Flower sales in Q4 2021 were 504,233 grams (Q4 2020: 831,986 grams), a 39.4% decrease. The wholesale price of flower decreased by 45.7% to $0.72 per gram (Q4 2020: $1.32 per gram). Pre-roll sales were 96,451 grams (Q4 2020: 161,187 grams), a 40.2% decrease. The wholesale price of pre-rolls increased by 4.0% to $1.85 per gram (Q4 2020: $1.78 per gram).

Halo Winberry
In Q4 2021, Halo Winberry sold 4,429,555 grams of flower, pre-rolls, oil and extracts, and edibles. Halo Winberry sold 995,118 grams of flower at a price of $0.76 per gram, 67,486 grams of pre-rolls at a price of $7.74 per gram, 582,268 grams of oils & extracts at a price of $2.29 per gram, and 60,683 grams of edibles at a price of $0.51 per gram.

MDT
In Q4 2021, the facility owner in Ukiah, MDT, sold 7,278,852 grams of distillate, live resin, gummies, and pre-rolls (Q4 2020: 1,474,621), a 394% increase. MDT sold 26,413 grams of flower at $9.77 per gram (Q4 2020: nil). Pre-roll sales were 7,819 grams (Q4 2020: 4,834 grams), a 61.7% increase, at a wholesale price of $5.16 per gram (Q4 2020 $8.44), a 22.4% increase. Sales of trim & fresh frozen were 6,930,106 grams (Q4 2020: 1,207,871), a 473.7% increase, at a wholesale price of $0.05 per gram (Q4 2020: $0.11), a 51.9% decrease. Sales of oil and extracts were 301,755 grams (Q4 2020: 190,874 grams), a 58.1% increase, at a wholesale price of $6.76 per gram (Q4 2020: $9.49), a 22.6% decrease. Sales of edibles were 12,759 grams (Q4 2020: 71,042), a 82.0% decrease, at a wholesale price per gram of $3.81 (Q4 2020: $0.91), a 319.7% increase.

Full Year 2021 Financial Results

Revenue
Revenues in FYE 2021 were $36.2 million compared to $21.6 million in Q4 2020, a 67% increase.

The Company sold 32.5 million grams of flower, pre-rolls, oils and extracts, trim and edibles, a 381.6% increase compared with 2020. ANM sold 5.0 million grams of flower, pre-rolls, trim and fresh frozen, oils and extracts and edibles during 2021, a 6.6% increase compared with 2020. Winberry sold 11.0 million grams of flower, pre-rolls, oils and extracts and edibles during 2021. Winberry was first consolidated into the Company’s financial reporting in the year 2021. MDT sold 14.3 million grams of flower, pre-rolls, trim, fresh frozen, oils and extracts and edibles, compared with 1.8 million grams sold during 2020.

Gross Profit
Reported gross profits were $4.5 million, representing 12.4% gross margin in 2021, compared to $4.3 million, or 19.7% gross margin, in 2020. Adjusted for the gain or loss in the value of biological assets and impairments, gross profit was $7.3 million, or 20.1% gross margin, compared with adjusted gross profit of $5.2 million, or 24.0% gross margin in 2020.

Operating Expenses
Operating expenses were $43.1 million in 2021 compared to $23.5 million in 2020. Acquisitions added $12.5 million in operating expenses during 2021. For FYE 2021, total operating expenses for Bophelo and Canmart were $3.6 million compared to $0.6 million last year. Bophelo and CanMart were sold to Akanda in November of 2021 and going forward those costs are no longer incurred by Halo.

Adjusted EBITDA
The Company reported an Adjusted EBITDA loss of $23.6 million compared to a loss of $6.9 million in 2020. ¹

Net Loss
Net loss was $93.0 million for 2021, or $10.48 per share, compared with a net loss of $41.2 million, or $7.27 per share, in 2020.

Earnings Conference Call and Financial Outlook

Halo will host a live webinar at 4:15 p.m. Eastern Time on Monday, April 4, 2022, to discuss its results. To access the webinar, visit https://conferencingportals.com/event/qzlwFzzt. The webinar will also be available on a telephonic replay after the event until April 11, 2022. To access the replay, dial 1-(800) 770-2030 (toll free) or (647) 362-9199 (international) and enter conference ID: 45805. At this time we are not providing financial guidance given the uncertainty within the Oregon and California markets and the early stage of the Company’s incubation strategy.

Additional Information

Complete results are reported in the Company’s consolidated financial statements for the three and 12 months ended December 31, 2021, and associated management’s discussion and analysis (the “Q4 2021 MD&A”) which are available on the Company’s profile on www.sedar.com.

About Halo Collective Inc.

Halo is a leading, vertically integrated cannabis company focused on the West Coast of the United States and operates other emerging businesses in CBD and non-psychotropic mushroom functional beverages. In its cannabis operations, the Company cultivates, extracts, manufactures, and distributes quality cannabis flower, oils, and concentrates and has sold hundreds of millions of grams of cannabis in the form of flower, pre-rolls, vape carts, edibles, and concentrates since inception. The Company sells a portfolio of branded cannabis products including its proprietary Hush, Winberry Farms, Williams Wonder Farms, and Budega brands, and under license agreements with Papa’s Herb®, DNA Genetics, Terphogz, and FlowerShop*.

In Oregon, Halo has a combined 14 acres of owned and contracted outdoor and greenhouse cultivation. The Company also operates Food Concepts LLC, a master tenant of a 55,000 square foot indoor cannabis cultivation, processing, and wholesaling facility in Portland.

In California, Halo maintains licenses for extraction, manufacturing, and distribution. The Company has partnered with Green Matter to purchase the Bar X Farm in Lake County and plans to develop up to 63 acres of cultivation, comprising one of the largest licensed single-site grows in California. Halo has opened a dispensary in Los Angeles under the Budega brand in North Hollywood and plans to open two more in Hollywood, and Westwood by the 2nd quarter of 2022.

Halo is also expanding into other consumer health and wellness categories expected to experience rapid growth in consumer demand, including functional supplements such as nootropic nutraceuticals. The Company has recently acquired H2C Beverages, a company focused on cannabinoids and non-psychotropic mushroom functional beverages, and entered into a distribution and manufacturing agreement with SWAY Energy Corporation (formerly Elegance Brands Inc.), to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms.

Halo has acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. The Company intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc., and to complete a distribution of the shares of Halo Tek Inc. to shareholders on record, at a date to be determined.

Halo also operates three Kushbar retail cannabis stores located in Alberta, Canada.

Outside of North America, Halo is the largest shareholder of Akanda Corp. (NASDAQ: AKAN) currently owning 44% of the common shares. Akanda is an international medical cannabis and wellness platform company seeking to help people lead better lives through improved access to high quality and affordable products. Akanda is building a seed-to-patient supply chain, connecting patients in the UK and Europe with diverse products, including cannabis products cultivated at its competitively advantaged grow operation in the Kingdom of Lesotho and with other trusted third-party brands. Akanda’s initial portfolio includes Bophelo Bioscience & Wellness, a GACP qualified cultivation campus in the Kingdom of Lesotho in Southern Africa, and CanMart, a UK-based fully licensed pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com

Connect with Halo Collective: Email | Website | LinkedIn | Twitter | Instagram

Non-IFRS Financial Measures

Adjusted EBITDA and Adjusted Gross Profit are non-IFRS financial measures that the Company uses to assess its operating performance and does not have any standardized meaning prescribed by IFRS. Management defines Adjusted EBITDA as earnings (loss) before interest, tax, depreciation and amortization, as adjusted for non-cash items. Management defines Adjusted Gross Profit and Margin as Gross Profit adjusted for fair value gains or losses on biological assets, and impairments included in cost of goods sold. These non-IFRS measures are provided to assist management and investors in determining the Company’s 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. 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. For a reconciliation of Adjusted EBITDA please refer to “Non-GAAP Measures” in the Q4 2021 MD&A, which is available on the Company’s SEDAR profile at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to the management’s plans regarding its portfolio of cannabis businesses, the expected contribution from the Company’s California dispensaries and the expected opening date thereof, the time and place for the Company’s earnings call, the expected size and capabilities of the final facility planned at Ukiah Ventures, the size of Halo’s planned cultivation facility in Northern California and the proposed spin-off by Halo Tek Inc.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: inability of management to successfully integrate the operations of acquired businesses, changes in the consumer market for cannabis products, changes in the expected outcomes of the proposed changes to Halo’s operations, delays in obtaining required licenses or approvals necessary for the build-out of the Company’s cannabis operations, dispensaries or Canadian operations, the proposed spin-out with Halo Tek Inc., delays or unforeseen costs incurred in connection with construction, the ability of competitors to scale operations in Northern California, delays or unforeseen difficulties in connection with the cultivation and harvest of Halo’s raw material, changes in general economic, business and political conditions, including changes in the financial markets; and the other risks disclosed in the Company’s annual information form dated March 31, 2022 and other disclosure documents available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.

Third Party Information

This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources

Non-Solicitation

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.

AUSTIN, Texas, February 11, 2022–(BUSINESS WIRE)–Anebulo Pharmaceuticals, Inc. (Nasdaq: ANEB), a clinical-stage biopharmaceutical company developing novel solutions for people suffering from acute cannabinoid intoxication and substance abuse (the “Company” or “Anebulo”), today announced financial results for the three months ended December 31, 2021 and recent updates.

Highlights from the fiscal year 2022 second quarter and recent weeks include the following:

• Initiated a Phase 2 proof-of-concept clinical study to investigate ANEB-001 as a potential treatment for acute cannabinoid intoxication. The Phase 2 clinical trial is a randomized, double-blind, placebo-controlled study at the Centre for Human Drug Research in, Leiden, the Netherlands to evaluate ANEB-001 in the inhibition of THC-induced effects. The Company expects topline results to be available in the first half of calendar year 2022.

• Participated in a pre-IND (Investigational New Drug) meeting with the U.S. Food and Drug Administration (FDA) during which the company received guidance regarding the clinical development of ANEB-001 in the United States. The FDA noted that a challenge model whereby subjects are exposed to THC in a controlled clinical setting, as an essential alternative to patient studies, may be acceptable. FDA also suggested we submit a model-informed drug development (MIDD) paired-meeting request, potentially allowing for more frequent contact with the FDA to improve our path to clinical development and intended registration.

• Named Simon Allen as Chief Executive Officer and a member of the Board of Directors. Mr. Allen joined Anebulo on February 1, 2022. Previously he served as Chief Business Officer of Ambrx Biopharma Inc., where he helped prepare and conclude its NYSE IPO and establishing multiple partnerships with pharmaceutical companies such as Bristol Myers Squibb, Pfizer, Merck, Eli Lilly, Astellas, BeiGene and Sino Biopharma. These partnerships generated over $270 million in non-dilutive revenue with the potential to earn over a billion dollars in future milestones plus royalties for the company. From 2016 to 2018 he was Chief Executive Officer of CohBar where he transitioned the company from preclinical to clinical, managed the listing of its shares on Nasdaq, and included the company into the Russell 2000 Index. Mr. Allen started his career in the lab at Gilead Sciences working on antiviral drugs for HIV and Influenza prior to spending over two decades in sell-side biotech business development at companies such as Skyepharma, CovX and Kalypsys.

• Appointed Scott L. Anderson as Head of Investor Relations and Public Relations. Mr. Anderson joined Anebulo on January 1, 2022 and is responsible for Anebulo’s global investor relations and public relations programs. With more than 20 years of public company IR and PR experience, Mr. Anderson continues to enhance the Companies outreach programs while managing investor and corporate relationships. Mr. Anderson began his career in similar capacities at companies such as Qualcomm, Qorvo (formerly RF Micro Devices), Actavis plc (formerly Watson Pharmaceuticals) and O2Micro International.

• Issued U.S. method-of-use patent for ANEB-001. The Company strengthened its intellectual property with the issuance of U.S. patent No. 11,141,404, titled “Formulations And Methods For Treating Acute Cannabinoid Overdose.” The patent provides protection through 2040 and describes the use of ANEB-001 to treat acute cannabinoid overdose.

Management Commentary

“I am thrilled to join the Anebulo team at such an exciting time in the company’s development. There is a significant and pressing need to treat acute cannabinoid intoxication as hospital emergency department visits for this condition reached 1.7 million in 2018 and continue to increase by approximately 15% annually as more states legalize the use of marijuana,” stated Simon Allen, Chief Executive Officer of Anebulo. “In January, we announced the initiation of our Phase 2 clinical study of ANEB-001 in the Netherlands and expect to report topline results in the first half of this year, an important step in achieving our goal of developing the first FDA-approved therapy for acute cannabinoid intoxication.”

Second Quarter Fiscal 2022 Financial Results

• Operating expenses in the second quarter of fiscal 2022 were $1.1 million compared with $0.3 million in the same period in fiscal 2021.
• Net loss in the second quarter of fiscal 2022 was $1.1 million, or $(0.05) per share, compared with a net loss of $0.3 million, or $(0.03) per share, in the second quarter of fiscal 2021.
• Cash burn in the second quarter of fiscal 2022 was $1.2 million compared with $0.4 million in the same period in fiscal 2021.
• Cash and cash equivalents were $18.0 million as of December 31, 2021.

About Anebulo Pharmaceuticals, Inc.

Anebulo Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company developing novel solutions for people suffering from acute cannabinoid intoxication and substance abuse. Its lead product candidate, ANEB-001, is intended to reverse the negative effects of acute cannabinoid intoxication within one hour of administration. ANEB-001 is a competitive antagonist at the human cannabinoid receptor type 1 (CB1). For further information about Anebulo, please visit www.anebulo.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, along with terms such as “anticipate,” “expect,” “intend,” “may,” “will,” “should” and other comparable terms, involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Those statements include statements regarding the intent, belief or current expectations of Anebulo Pharmaceuticals and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including risks attendant to developing, testing and commercializing the company’s product candidates, and those described in Anebulo Pharmaceutical’s most recent annual report on Form 10-K and in other periodic reports filed with the SEC, and that actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, Anebulo Pharmaceuticals undertakes no obligation to update or revise forward-looking statements to reflect changed conditions.

Contacts

Anebulo Pharmaceuticals, Inc.
Scott Anderson
Head of Investor Relations and Public Relations
(858) 229-7063
[email protected]

Rex Merchant
Chief Financial Officer
(512) 598-0931
[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.

TORONTO, November 05, 2021–(BUSINESS WIRE)–Tokens.com Corp. (NEO Exchange Canada: COIN) (Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a publicly traded company that invests in revenue-generating crypto and blockchain assets linked to Decentralized Finance (“DeFi”), Non-Fungible Tokens (“NFT”) and metaverse real estate, is pleased to announce its financial results for the three and nine months ending September 30, 2021 (“Q3 2021”).

All dollar figures are in United States dollars (“USD”), unless otherwise stated.

Q3 2021 Highlights:

• 65% growth of digital asset inventory during Q3.
• Net income of $4.1 million or $0.05 per share (CAD$5.2 million or CAD$0.06 per share).
• Comprehensive income of $6.3 million or $0.08 (CAD$7.9 million or CAD$0.10 per share).
• Earned staking rewards valued at $719,051 (CAD$913,194) and $1,532,741 (CAD$1,946,581) for the three and nine months ended September 30th, respectively.
• Purchase of additional tokens during Q3 – Axie Infinity Shards, Ethereum, Polkadot and Smooth Love Potion.
• Commencement of trading in the United States on the OTCQB venture market under ticker symbol “SMURF”.
• Appointment of Ian Fodie as Chief Financial Officer.
• Introduction of new brand identity and redesigned website.
• Announced agreement to purchase a 50% stake in Metaverse Group, one of the world’s first virtual real estate companies (closed October 15, 2021).

Tokens.com’s philosophy is to bring the fastest growing areas of crypto and blockchain to public market investors. Management has identified crypto staking and the metaverse as the two most exciting and fastest growing areas in blockchain. Our strategy is to continue to buy assets in these sectors and use technology to earn revenue from those assets.

During Q3, there was a pronounced recovery in cryptocurrency markets from the correction experienced during Q2. In addition, the one-time expenses incurred during Q2 related to the legal and administrative costs of going public were behind us. Management was also successful in keeping operating and overhead costs low.

During Q3, Tokens.com management was successful in completing several initiatives, the most significant being entering into an LOI to purchase 50% of Metaverse Group, which closed on October 15th. Management is excited about this transaction and the growth potential of being a landlord in the metaverse. We look forward to working with Metaverse Group to continue to expand its business model of acquiring top digital NFT based real estate in various metaverses.

As a result of the increased demand for our common shares, the Company announced a private placement financing on October 25, which is described in more detail below. The proceeds from this financing, scheduled to close in mid-November, will be to grow our two main areas of focus – crypto staking and, through Metaverse Group, accumulate more NFT based metaverse assets.

Q3 was our second quarter as a public company and our first full quarter with the proceeds from our April 2021 fundraise fully deployed. Tokens.com benefited significantly from the rebound in cryptocurrencies during Q3 as is evidenced by the token price appreciation of the top 5 cryptocurrencies held by the Company during Q3, which has continued into Q4 as follows:

Management is confident that the digital assets it owns are linked to the macro growth in DeFi and NFTs. Consequently, we view the potential for ongoing appreciation of these assets to be high.

Included in operating expenses for the nine months ended September 30, 2021, is a one-time listing expense of $1,108,883 incurred during Q2.

Tokens.com marks its digital asset inventory to market at the end of every quarter and the positive revaluation of digital assets of $6.3 million was reflective of the crypto market rebound from its correction in Q2.

“Tokens.com continues to compound its revenue by re-staking the tokens it receives as revenue to create higher returns on capital. We believe this strategy will allow us to grow our digital asset inventory and position it for positive and compounding appreciation as the market continues to grow,” said Andrew Kiguel, CEO. “Our digital assets, linked to the growth of DeFi and NFT applications, have the potential to appreciate further over the next several years. Through staking, we earn additional tokens daily resulting in the organic growth of our digital assets,” added Kiguel.

A complete financial reporting package, including the Condensed Interim Consolidated Financial Statements and Management’s Discussion & Analysis, is available on our corporate website (www.tokens.com), and the SEDAR website (www.sedar.com).

An investor call has been scheduled to discuss the Company’s Q3 2021 financial results, hosted by CEO Andrew Kiguel starting at 10:00 am ET on November 5, 2021.

Date: November 5, 2021
Time: 10:00 a.m. ET
Dial-In: 1 (800) 697-5978
Passcode: 7469627#

Financing

On October 26, 2021, the Company announced a proposed financing of up to $16.0 million including the underwriters’ over-allotment option. Approval of the financing by the NEO Exchange requires the Company to obtain the approval of the financing from at least 50% of the holders of the Company’s issued and outstanding shares, pursuant to the exemption in Section 10.09(2) of the NEO Exchange Listing Manual. The Company can now report that this requirement has been exceeded.

About Tokens.com

Tokens.com Corp is a publicly traded company that owns an inventory of DeFi and NFT based cryptocurrencies. Through a process called staking, Tokens.com’s inventory of cryptocurrencies is used to earn additional tokens. In addition, Tokens.com co-owns Metaverse Group, one of the world’s first NFT based, virtual real estate blockchain companies. Through its growing digital asset inventory, Tokens.com provides public market investors with a simple and secure way to gain exposure to cryptocurrencies linked to DeFi and NFTs.

Further information can be found on the Company’s website: Tokens.com.

Keep up-to-date on Tokens.com developments and join our online communities at Twitter, LinkedIn, and YouTube.

This news release includes certain forward-looking statements as well as management’s objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of cryptocurrencies, as described in more detail in our securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211105005181/en/

Contacts

Tokens.com Corp.

Andrew Kiguel, CEO
Telephone: +1-647-578-7490
Email: [email protected]

Jennifer Karkula, Head of Communications
Email: [email protected]

Media Contact: Megan Stangl – Talk Shop Media
Email: [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.