Toronto, Ontario, May 29, 2023 (GLOBE NEWSWIRE) — Ayurcann Holdings Corp. (CSE: AYUR, OTCQB: AYURF, FSE: 3ZQ0) (“Ayurcann” or the “Company”), a leading Canadian cannabis company specializing in the processing and manufacturing of cannabis 2.0 and 3.0 products in the recreational market, is pleased to announce its financial and operational results for the three- and nine-months ended March 31, 2023, the highlights of which are included in this news release. All figures are reported in Canadian dollars. The Company’s full set of consolidated interim financial statements for the three- and nine-months ended March 31, 2023 and accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.ayurcann.com and its profile page on SEDAR at www.sedar.com.

FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2023

• Gross revenues increased to $5,893,351 for the quarter (compared to $2,757,264 for the same period last year), representing an increase of 114%
• Gross revenues increased to $13,660,561 for the nine-months (compared to $7,834,386 for the same period last year), representing an increase of 74% year-over-year
• Successfully grew product offerings to 60 stock keeping units (“SKUs”) across the country and became a top seller of products, including¹:
  • In the 1×0.5G Pre-Roll Category:
    • ACROSS CANADA #2
    • ONTARIO #1, ALBERTA #3, MANITOBA #3, SASKATCHEWAN #3
  • In the 1g Vape Category:
    • ACROSS CANADA #4
    • ONTARIO #5, ALBERTA #6, MANITOBA #1, SASKATCHEWAN #2
  • In the 2x1G Pre-Roll Category:
    • ACROSS CANADA #2
    • ONTARIO #2, ALBERTA #2, MANITOBA #2, SASKATCHEWAN #1

OPERATIONAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2023

• Canadian retail penetration of over 65%, with Ontario at over 75%²
• Consistently offered new SKUs to the market, reflecting the innovation, reliability and value that Ayurcann has brought to the recreational cannabis market in Canada, with over 40 new SKUs being launched over the next three to six months
• Top Company brands: Fuego, H&S, and XPLOR, are consistent performers
• Focused on top selling categories, using and improving existing efficiencies to enhance production and market share while addressing SKU rationalization and price compression.

“As we continue to expand to more markets across the country with our offerings, we are thrilled to report consistent growth in our revenue and market share despite the price compression that continues to impact the cannabis industry. Ayurcann is proud to have generated an increase in revenue from its business-to-consumer strategy. With the increase in revenue, combined with the growth of our in-house brands we are thrilled with the growth of Ayurcann and its brands, Fuego, H&S, XPLOR and Joints within the Canadian marketplace. With our products being embraced by cannabis consumers, which offer value and innovation, we are very optimistic about our growth, and the potential of becoming an industry leader. We have been successfully selling throughout various Provinces within Canada, including Ontario, British Columbia, Alberta, Yukon, New Brunswick, Manitoba, and Saskatchewan, and believe that continued interest from consumers and retailers will help elevate Ayurcann within the industry”, said Igal Sudman, Chief Executive Officer of Ayurcann.

“With our laser focus on growth, market share and innovation, combined with our current product offerings, we are confident that we can continue to bring offerings to market, grow market share and sales across the country, increasing our top line revenues,” further added Mr. Sudman.

For further information, please contact:

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

Investor Relations:

Email: ir@ayurcann.com

About Ayurcann:

Ayurcann is a leading post-harvest cannabis product manufacturer with a focus on providing and creating new innovations in the adult use cannabis industry in Canada. Ayurcann is striving to become a top supplier of Canadian cannabis brands.

For more information about Ayurcann, please visit www.ayurcann.com and its profile page on SEDAR at www.sedar.com.

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

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “strategy”, “expects” or “does not expect”, “intends”, “continues”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “will be taken”, “will launch” or “will be launching”, “will include”, “will allow”, “will be made” “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the growth trajectory of the Company’s revenue and in-house brands having a positive impact on the Company’s future development; the Company launching new SKUs upon the timelines disclosed herein; the Company bringing offerings to market, gaining market share and sales across the country, allowing the Company to grow its revenue; and the ability of the Company to elevate within the industry and become an industry leader.

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

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

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

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

¹ Based on reporting by Hyfyre IQ as of March 31, 2023.
² Based on reporting by Trellis as of March 31, 2023.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

FIRST QUARTER OPERATIONAL HIGHLIGHTS

• $1.7M Q1 2022 revenue, a 225% increase in corporate store retail revenue over the same period in the prior year, delivery of a 31% corporate store retail gross margin;¹
• $2.8M of system-wide retail sales², a 369% increase over the same period in the prior year with a 32% system-wide retail gross margin; and
• 267% increase in system-wide count from 3 stores in Q1 2021 to 11 in Q2 2022 (7 corporate and 4 brand licensed).

TORONTO, May 16, 2022 /CNW/ – Trees Corporation (NEO: TREE) (the “Company” or “Trees“), a next-now cannabis company at the intersection of community, content, and commerce, is pleased to announce its first-quarter financial results for the three months ended March 31, 2022 and 2021.

“The Trees team has done an exceptional job in executing on our business plan,” stated Jeff Holmgren, President and Chief Financial Officer of Trees, further adding “In recent months Trees has taken giant steps forward to strengthen the balance sheet through substantive debt settlements reducing corporate debt. Trees is well positioned to move forward with confidence as it continues to execute on its growth strategy.”

Summary of the First Quarter Financial Results

During the three months ended March 31, 2022 (“Q1 2022“), the Company generated revenue of $1.7 million compared to $0.5 million in Q1 2021 (the “prior year”), representing an increase of 225%. Revenue growth was driven by an increase in the corporate owned store count from 2 stores in Q1 2021 to 7 stores in Q1 2022, inclusive of the acquisition of Metro Cannabis in May 2021, which added 4 stores and $0.9 million of revenue for Q1 2022.

Trees’ retail gross margin of 31% for Q1 2022 was down from 36% gross margin recorded in the prior year, reflecting increased price competition led by the entry of multiple value retailers in early 2021 who substantially reduced margins in pursuit of increased market share. Trees has demonstrated a resilience to these competing factors through exceptional customer service, product selection and convenience, successfully mitigating the margin reduction to only 14% from the same period in the prior year.

As at March 31, 2022, the Company had a cash balance of $210,333 (December 31, 2021: $1,316,517) and a net working capital deficit of $3,776,672 (December 31, 2021: $765,973), a decrease of $3,010,698 from December 31, 2021 to March 31, 2022, largely a result of the use of cash towards operations and growth initiatives and the reclassification of shareholder loans to current in the current period. However, subsequent to March 31, 2022, Trees has been successful in substantially strengthening its balance sheet through the combined initiatives of debt settlement negotiations and a previously announced private placement financing.

Selected Financial Information

Consolidated Financial Statements and MD&A

The results discussed herein are a summary and are qualified in their entirety by reference to the Company’s unaudited interim condensed consolidated financial statements and accompanying notes for the three months ended March 31, 2022 and 2021, and related management’s discussion and analysis of financial condition and results of operations, copies of which are available under the Company’s profile on SEDAR and the Company’s Investor Relations website at www.TreesCorp.ca.

About Trees

Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded, Trees offers a differentiated retail experience, combined with digital platforms that aim to educate and amplify, unlocking emerging consumer segments and need states that allows Trees to uniquely engage the 360 cannabis consumer. The company has 11 Trees branded storefronts in Canada, including seven (7) stores owned and operated in Ontario and four (4) stores operated in BC, subject to the closing of the acquisition of the assets of 101 pursuant to the terms of the third amended and restated asset purchase agreement between Trees and 1015712 B.C. Ltd. (the “APA“). The closing of the transactions contemplated by the APA is subject to certain conditions precedent, including the receipt of certain licensing approvals and related regulatory consents. Until such time as the closing of the acquisition of the assets under the terms of the APA, the BC stores are subject to a brand license agreement and are included when reporting System-Wide Retail Sales²

Non-IFRS Financial Measures

In this news release, the Company reports “system-wide retail sales” and “Retail Gross Margin”, financial measures that are not determined or defined in accordance with the International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IFRS“). Such financial measures do not have standardized meanings prescribed by IFRS and Trees’ methods of calculating these financial measures may differ from methods used by other companies. Accordingly, such non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies. These measures are 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.

System-wide retail sales represents the sum of the revenue reported to Trees by (i) brand licensed retail cannabis stores, which are subject to a brand license agreement providing Trees with a royalty interest, and (ii) Company-owned retail cannabis stores. Management believes this measure is useful to the investment community in evaluating brand scale and market penetration and is used by management of Trees to assess the financial and operational performance of the Company and the strength of the Company’s market position relative to its competitors.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking information” (“forward-looking information“) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.

Forward-looking statements in this document include, among others, statements relating to the Trees’ expectations regarding the closing of the transactions contemplated by the APA and receipt of regulatory approvals in connection therewith, expectations regarding the Company’s ability to unlock and capture emerging consumer segments across its platforms, expectations regarding the Company’s ability to engage its customers and new consumer segments and need states, the expectation that the Company will be successful in its growth strategy, and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: (a) the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; (b) compliance with extensive government regulation; (c) domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; (d) the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating peers; (e) adverse changes in the public perception of cannabis; (f) the impact of COVID-19; and (g) general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking information contained in this press release.

The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

The NEO Exchange has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this release.

SOURCE Trees Corporation

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.