• Full year 2021 revenue increased 193% to CDN $37.3 million, vs CDN $19.3 million in 2020¹
• Record quarterly revenue for Q1 2022 of CDN $28 million with Gross Margin excluding biological assets of $11.3 million¹
• Gross Margin of CDN $23.2 million in fiscal 2021 vs Gross Margin of CDN $12.9 million in fiscal 2021¹
• Adjusted EBITDA loss of $10.3 million for Full Year 2021 and Adjusted EBIDTA gain of 360 Thousand for First Quarter 2021¹

TORONTO, Aug. 02, 2022 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB” or the “Company”) is pleased to report it has filed its 2021 audited financial statements, its 2022 first quarter financial statements and related 2021 and 2022 first quarter Management’s Discussion and Analysis and is providing certain full year 2021 and Q1, 2022 financial results and select subsequent events:

Management Commentary:

Brad Rogers, CEO and Chairman, stated, “After many significant sector challenges over 2020 & 2021, we are pleased to report that by the close of Q1 2022 we were able to complete all of the acquisitions we had discussed over the previous two fiscal years, including Florida and Michigan and we are now able to focus on our original strategy which we feel is the most adaptable and will offer the best return for the Company and stakeholders. With full operational control and a clear road map, Florida closed and certainty of our ability to complete the closing of the Michigan acquisition, we turned our attention to completing a multi-stage restructuring and “right-sizing” of the business to leverage our strategy long term. This included exiting Illinois and the sale of our assets in that state, which enabled the Company to pay off over $55 million of liabilities in Q2 of 2022 and reduce our operational and interest expenses by over $20 million per year. These reductions of liabilities and expenses will positively impact our results for fiscal 2022 commencing in late Q2 of this year.

“Florida has been a significant beneficiary of these moves with our ability to redeploy focus and resources to high ROI opportunities where we have expanded our grow capacity and extended our SKU’s and product lines to easily supply up to 10 stores, and growing into that supply with 3 retail locations operating with 2 more very high potential locations in process; of note, Q1 results only included sales from one location during the quarter.

“Although expected, Michigan has seen significant price compression in the wholesale industry and (as such) we have responded with significant operational improvements and have reduced our average cost per unit while increasing unit sales with our Platinum Vape (“PV”) branded product line. We have expanded our PV offering in Michigan to include Live Resin and Gummies and we are further expanding the product line into new categories throughout this year. We have also licensed PV into two additional states and expect to see those states launch later this year.”

Rogers continued, “On the finance front, we have made significant changes to reduce our overall operational costs and reduce debt servicing payments. Some of the savings are a result of exiting the state of Illinois, but we have also seen a reduction of operational expenses and as a result we are no longer incurring the start-up costs associated with scaling initial operations in Florida, one-time expenses associated with the M&A and divestitures we have completed over the last two years and overall greater attention to reduced spend across the organization. With the first half of 2022 now behind us, we are committed to driving profitable growth throughout the organization as we set our eyes to achieving positive EBITDA by the end of this fiscal year.”

Certain highlights for 2021 and subsequent to the year end for the Company include:

• On April 28, 2021, the Company completed the acquisition of Acreage Florida, Inc., through its wholly owned subsidiary of RWB Florida LLC. Acreage Florida Inc. subsequently changed its name to RWB Florida Inc. (“RWB Florida”).
• On May 27, 2021, RWB announced that it has completed the more comprehensive portion of Michigan’s two-step application process for marijuana licensing through a wholly owned operating subsidiary, RWB Michigan, LLC (“RWB Michigan”). During Fiscal 2021, the Company completed the necessary licensing required to begin operation in early 2022 in the State of Michigan and to close its previously announced acquisition of PharmaCo, Inc. (“PharmaCo”).
• On June 4, 2021, RWB’s wholly-owned subsidiary, RWB Florida entered into agreements for an aggregate capital raise of US $30.2 million. The raise included an investment of US $11.3 million from certain strategic investors directly into RWB Florida
• On August 4, 2021, RWB announced it acquired an operational 45,000 square foot greenhouse situated on 4.7 acres of land in Apopka, Florida.
• On September 27, 2021, RWB announced that it has completed a refinancing of an aggregate principal amount of US $18,620,000 debentures (plus accrued interest to September 1, 2021) previously issued to an arm’s-length investor.
• On December 30, 2021, RWB issued 6,784,812 shares to settle a CAD$5.1 million (US$4.0 million) debt. The weighted average conversion price was approximately CAD$0.75 per share (US $0.56).
• On January 18, 2022, the Company through its wholly owned subsidiary, RWB Michigan, closed on a lease assignment for a 15,000 sq. ft. manufacturing/processing and distribution facility in Warren, Michigan and was issued both Medical and Adult Use (aka “recreational”) licenses to begin manufacturing medical and adult use cannabis products with all necessary equipment already installed and inspections completed.
• On February 8, 2022, RWB received all regulatory approvals and closed its acquisition of PharmaCo via RWB Michigan in an all-stock transaction. The transaction was originally announced on July 27, 2020.
• In April 2022, the Company closed on the sale of its Granville, Illinois greenhouse, associated real estate and certain greenhouse equipment to New Branches LLC of California, an arm’s length purchaser, for a total cash purchase price of $56.1 million (US$ 44.5 million). In connection with the closing, the Company repaid its secured lender $51.7 million from the proceeds and certain other accrued liabilities totaling approximately $3.8 million. The repayment represented approximately 80% of the outstanding balance due to its secured lender and eliminates $6.2 million of annual interest expense for the Company. In addition, the Company decided to pivot to an asset-light, brand rich, model in the State of Illinois and will no longer pursue its own THC license through its previously announced definitive agreement to acquire a cultivation license in Shelbyville, Ill. It is anticipated that all Illinois operations for the Company shall be reduced to a sales and marketing initiative focusing on distribution of its PV branded product portfolio going forward, which will provide the Company with significant annualized operating cost reductions.
• On June 15, 2022, RWB entered in an agreement with C3 Industries to license the PV brand in Missouri and Massachusetts.

Select Financial Highlights for the Full Year 2022:

The Company recorded its operations in Illinois, Mid-American Growers, Inc, (“MAG”) as discontinued operations, accordingly the results of operations for 2020 and 2021 exclude the operations from MAG.

Revenue from continuing operations for the year end December 31, 2021 of $37.3 million increased significantly compared to the revenue for the year end December 31, 2020. The increase of $17.9 million in sales, from $19.3 million in 2020 to $37.3 million in 2021 is related to Cannabis vape product sales generated by PV California, packaging revenue generated by PV Michigan and Cannabis product sales generated by RWB Florida operations.

Gross profit increase of $10.3 million to $23.2 million from $12.9 million due to the increased profitable product sales and the biological assets being grown in Florida. Included in gross profit is the fair value adjustment on biological assets. The gain on biological assets resulted in income of $3.7 million in 2021 compared to nil for the prior year. The fair value is as a result of biological product being grown in Florida during the latter part of 2021.

Increase of $11.4 million in cost of sales from $6.4 million in 2020 to $17.8 million in 2021. The increase corresponds with the increase in sales, generated by PV California and RWB Florida operation.

Increase of $11.2 million in operating expenses from $36.1 million in 2020 to $47.3 million in 2021. Operating expenses increased to scale revenue generating activities and is in line with management expectations. Operating expenses include non-cash items of depreciation and share-based compensation, which increased year over year by $10.0 million and $0.9 million respectively. Excluding non-cash items operating expenses for 2021 were $21.4 million. Subsequent to year end, management completed a number of restructuring initiatives to reduce operating expenses expected to be implemented throughout fiscal 2022.

Select Financial Highlights for the First Quarter of 2022

The Company recorded its operations in Illinois, Mid-American Growers, Inc., (“MAG”) as discontinued operations, accordingly the results of operations for first quarter 2022 exclude the operations from MAG.

Record revenue from continuing operations of $28 million is related to Cannabis vape product sales generated by PV California, revenue generated by PV Michigan, a partial quarter recognizing revenue from the closing of the PharmaCo transaction in February of 2022, and Cannabis product sales generated by RWB Florida operations

Gross profit of $9.2 million is inclusive of the loss of $2.45 million on biological assets and a gain of $0.27 million on realized fair value on inventory sold. Gross profit, excluding these items of $11.3 million.

Operating expenses of $11.4 million for the period. Operating expenses include non-cash items of depreciation and share-based compensation in the amounts of $1.48 and $0.275 million respectively.

Net loss of $11.3 million for the period with an adjusted EBITDA gain of $0.360 million.

For additional details on the Company’s financial results please access the Company’s filings at: www.SEDAR.com

¹Operations in Illinois, Mid-American Growers, Inc, (“MAG”) have been recorded as discontinued operations, accordingly the results of operations for 2020 and 2021 exclude the operations from MAG.

About Red White & Bloom Brands Inc.

Red White & Bloom is a multi-state cannabis operator and house of premium brands in the U.S. legal cannabis sector. RWB is predominantly focusing its investments on the major U.S. markets, including Arizona, California, Florida, Massachusetts, and Michigan.

For more information about Red White & Bloom Brands Inc., please contact:

Brad Rogers, CEO and Chairman
604-687-2038

[email protected]

Visit us on the web: https://www.redwhitebloom.com/

Follow us on social media:
Twitter: @rwbbrands
Facebook: @redwhitebloombrands
Instagram: @redwhitebloombrands

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

FORWARD LOOKING INFORMATION

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations.  When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information.  There is no assurance that these transactions will yield results in line with management expectations. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

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 include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, market size, and the volatility of the Company’s common share price and volume.  Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change.  Investors are cautioned against attributing undue certainty to forward-looking statements.

There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by forward-looking statements and information.  Such factors include, among others, risks related to the Company’s proposed business, such as failure of the business strategy and government regulation; risks related to the Company’s operations, such as additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to the Company and its business generally; risks related to regulatory approvals. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized.  It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any particular time.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS 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. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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.

• With the April 1^st, 2021 acquisition of Mankind, a long standing California retail cannabis dispensary located in San Diego, GABY reported operating improvements as follows:
  • Q1 revenue in 2022 of $7.3 million is up 115 % over the comparative period
  • Q1 gross profit margin of 44% improved from 7% of the respective period last year,
  • Q1 Adjusted EBITDA¹ of $0.5 million is up from negative $0.8 million of the respective period last year,
  • Q1 Net income of $1.5 million is up from negative $2.5 million from the same quarter last year
• Closed Santa Rosa based Sonoma Pacific Distribution Inc. (“Sonoma Pac” or “SPD”) effective August 31, 2021, and in Q1-2022 settled SPD’s indebtedness to the California Department of Tax and Fee Administration (“CDTFA”) and dissolved SPD eliminating the remaining outstanding payables of $3 million.
• In 2021 GABY cut costs by US $3.0 million which have started to materialize in 2022.
• In April 2022, Gaby launched a new high end flower brand, Dank SpaceTM, which has become the number one selling flower brand in the Mankind dispensary within the first month of launch.
• In March 2022 Mankind ran an event to celebrate its one millionth transaction.

SAN DIEGO, CA / ACCESSWIRE / May 31, 2022 / GABY Inc. (“GABY” or the “Company”) (CSE:GABY)(OTCQB:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego’s Mankind Dispensary (“Mankind “), reported its financial and operating results for the first quarter 2022. All financial information is provided in Canadian dollars unless otherwise indicated. GABYs financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

• As part of GABY’s rationalization strategy, the operations of Sonoma Pac was shut down in Q3 of 2021 and in Q1-2022 the Company settled SPD’s indebtedness to the CDTFA and dissolved SPD eliminating the remaining outstanding payables of $3 million, strengthening its balance sheet and accounts for a part of the improvement in the net loss over Q1 2021.
• As a result of terminating its low margin wholesale and distribution business and further savings to be realized in 2022 on the USD 3 million reduction of payroll and operating costs implemented late Q4 2021, Management expects continued improvement in income from operations in 2022.

Management anticipates it will be able to sustain revenue, despite consumption normalizing to pre-COVID levels, and continue to generate synergies going forward as its experienced retail management team continues to implement operating efficiencies and well-established retail strategies. Management is particularly focused in 2022 on margin and SG&A improvements at the licensed manufacturing and distribution business and the enhancement of its delivery business.

Margot Micallef, Founder and Chief Executive Officer of GABY commented “I’m impressed with the ability of our experienced retail operating team to continue to generate cost savings and realize synergies in this challenging market. Our dispensary, Mankind, is better merchandized and our sales team is better trained in retail sales techniques and product knowledge than ever before. These improvements coupled with our data analytics give GABY an advantage in attracting new customers and retaining them. I’m convinced that we have the most hands-on experience in retail of any of our competitors and that bodes well for our future,” she concluded.

“My experience prior to joining GABY was in extracting the highest gains with the least cost possible. I’m pleased that the operations team is equally focused on that goal and I anticipate Management will be able to continue to realize operating efficiencies in future,” said Paul Stacey, Senior Vice-President and Chief Financial Officer of GABY. He continued, “Management’s strong retail experience will enable GABY to navigate around the complexities of the cannabis industry and our focus on simplifying operations will allow us to take advantage of the opportunities in the market.”

ABOUT GABY

GABY Inc. is a California-focused retail consolidator and the owner of Mankind Dispensary, one of the oldest licensed dispensaries in California. Mankind Dispensary is a well-known and highly respected dispensary with deep roots in the California cannabis community operating in San Diego. GABY curates and sells a diverse portfolio of products, including its own proprietary brands, Kind Republic Dank Space and Lulu’s through Mankind, A pioneer in the industry with a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition.

GABY’s common shares trade on the Canadian Securities Exchange (“CSE”) under the symbol “GABY” and on the OTCQB under the symbol “GABLF”. For more information on GABY, visit www.GABYInc.com or the Company’s SEDAR profile at www.sedar.com.

For further inquiries, please contact:
General
Margot Micallef, Founder & CEO or Investor Relations at [email protected]

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

Currency Presentation

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

Disclaimer and Forward-Looking Information

The CSE does not accept responsibility for the adequacy or accuracy of this release. Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward-looking statements include, but are not limited to, management’s expected continued improvement to GABY’s profitability in 2022, the estimated current and future cost savings of the Company, the Company’s future business strategy, including its plans to expand organically and through future acquisitions or greenfield expansions, and the anticipated benefits to be derived from GABY’s rationalization and cost cutting program. Although GABY believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because GABY can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Without limitation, these risks and uncertainties include: the severity of the COVID-19 pandemic; risks associated with the cannabis industry in general; failure to benefit from partnerships or successfully integrate acquisitions; actions and initiatives of federal, state and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies; the size of the medical-use and adult-use cannabis market; competition from other industry participants; adverse United States (“U.S.“), Canadian and global economic conditions; failure to comply with certain regulations; and departure of key management personnel or inability to attract and retain talent. GABY undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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

Selected financial information outlined above for the Company’s Q1 2022 should be read in conjunction with, GABY’s interim annual financial statements and management’s discussion and analysis (“MD&A“) for the three months ended March 31, 2022, which has been filed on the Company’s SEDAR profile at www.sedar.com and the Company’s website www.GABYinc.com.

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

Non-GAAP Measures

(1) Adjusted EBITDA does not have any standardized meaning as prescribed by IFRS , and, therefore, is considered a non-GAAP measure and may not be comparable to similar measures presented by other issuers and should not be viewed as a substitute for measures reported under IFRS.. Adjusted EBITDA from continuing operations is used by management and investors to analyze the Corporation’s profitability based on the Corporation’s principal business activities regardless of how: these activities are financed; assets are depreciated and amortized, and results are taxed in various jurisdictions or subject to entity specific tax planning. It therefore excludes interest expense, taxes, depreciation, and items which management considers are not related to operational performance of its core businesses. In addition, Adjusted EBITDA provides an indication of the Corporation’s ongoing ability to service its debt, income taxes and capital expenditures and therefore excludes non-cash expenses. Readers should refer to GABY’s MD&A under section entitled “NON-GAAP DISCLOSURE” for a full description of why certain items are excluded from net loss in arriving at the non-GAAP measure Adjusted EBITDA.

Below is a reconciliation of the non-GAAP measure Adjusted EBITDA from continuing operations for the quarters ended March 31, 2022 and 2021:

SOURCE: GABY Inc.

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

About Ryan Allway

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

Revenue increased 79% to $6.4 Million

Exited First Quarter with Largest Monthly Transactional Sales Volume

Reiterates Full Year 2022 Revenue Guidance of $37 to $40 Million

TORONTO & SEATTLE, May 26, 2022–(BUSINESS WIRE)–POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF), the leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three months ended March 31, 2022.

“We continued to onboard new merchants during the first quarter, primarily higher volume stores that, when coupled with anticipated same-store growth from our existing store footprint, reinforces our optimism for another year of exponential growth in 2022,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “Transactional sales volume began accelerating again towards the end of the first quarter with March transactional volume representing the largest month in our corporate history and that trend continued into the second quarter. To further drive growth, we unified our sales, marketing and customer support teams under the leadership of our new CRO, Julie Solomon, an experienced and accomplished executive in the fintech space. We are thrilled to add an executive of Julie’s caliber who will help us grow sales with existing retailers, add new retailers and expand into new markets.”

Hamlin continued, “Based on our current visibility, we are reaffirming our full-year 2022 revenue guidance of between $37 and $40 million, which represents growth of more than 80% at the midpoint compared to 2021.”

Recent Operational Highlights

• Onboarded 44 of the 100+ newly booked stores since the May 3, 2022 public Q&A call
• Increased count of contracted stores by additional 20% since the May 3, 2022 public Q&A call
• Increased same store sales of top 20 locations by volume by 11% (Q1 2022 vs. Q1 2021)
• Completed largest processing day in company’s history and sixth consecutive year of 100% uptime on 4/20/2022
• Expanded leadership team with the appointment of Julie Solomon to the role of Chief Revenue Officer

First Quarter 2022 Financial Highlights

• Transactional sales for payment Services totaled $103 million, up 61% compared with $64.0 million in the first quarter of 2021
• Total revenue was $6.4 million, up 79% compared with $3.5 million in the first quarter of 2021
• Gross profit was $1.5 million, or 24% of revenue, up 70% on a dollar basis compared with $900,000, or 25.4% of revenue in the first quarter of 2021
• Net loss was $(470,000), inclusive of a $1.6 million non-cash change in fair value of derivative liabilities, compared with a net loss of $(514,000), inclusive of a $(322,000) non-cash change in fair value of derivative liabilities in the first quarter of 2021.
• Adjusted EBITDA was $(1) million, or (16%) of revenue, compared with $71,000, or 20.0% of revenue, in the first quarter of 2021

Warrants and Cash Update

As of March 31, 2022, the company had cash of approximately $3.2 million compared to approximately $4.4 million as of December 31, 2021.

Financial Results

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

2022 Outlook

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

Conference Call Information

Date: May 26, 2022
Time: 4:30 pm Eastern Time
Toll-Free: 888-506-0062
International: 973-528-0011
Entry Code: 852067
Live Webcast: https://www.webcaster4.com/Webcast/Page/2708/45639

Conference Call Replay Information:

The replay will be available approximately 1 hour after the completion of the live event.

Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 45639
Replay Webcast: https://www.webcaster4.com/Webcast/Page/2708/45639

Financial Reports

Full details of the financial and operating results are described in the company’s consolidated financial statements with accompanying notes. The consolidated financial statements 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/20220526005640/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.

CALGARY, AB, May 25, 2022 /PRNewswire/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce its first quarter financial results for the three month period ending March 31, 2022.

“Decibel remains on track to achieve its previously communicated targets, which is a testament to the focus on our strategic plan, and particularly our New, Unique and Innovative products and dedication to our customers”, said Paul Wilson, CEO of Decibel. “We see momentum growing in our core business, and at the same time are driving towards creating shareholder value by restructuring our balance sheet. This makes Decibel one of the few in the cannabis space to repay convertible debentures rather than accept shareholder dilution.”

Key Financial Highlights – First Quarter

• Record Net Revenue: $16.7 million of total net sales in Q1 2022, with strong growth of 19% over Q4 2021 and 32% over Q1 2021. Net revenue growth was driven by the launch of Decibel’s new infused pre-roll lines and continued growth in demand for flower, vape and concentrate products, despite Q1 historically being a seasonally weak period.
• Gross Margin Before Fair Value Adjustments: 35% in Q1 2022, compared to 26% in Q4 2021 and 39% in Q1 2021. The Company has a number of initiatives and capital investments in progress and expects to be successful achieving the targeted 40 – 45% gross margin by the second half of 2022.
• Positive Adj. EBITDA: Record $2.5 million of adjusted EBITDA in Q1 2022, with strong growth of 70% over Q4 2021 and 21% over Q1 2021. This marks Decibel’s seventh consecutive quarter of positive adjusted EBITDA.  
• Derivative Sales: $10.3 million of net sales in Q1 2022, with strong growth of 50% over Q4 2021 and 85% over Q1 2021. Sales growth was driven by increased demand for vape and concentrate products, as well as the launch of a new infused pre-roll line in late Q4 2021 and early Q1 2022.
• Flower Sales: $4.2 million of net sales in Q1 2022, with an 8% decline over Q4 2021 and 10% growth over Q1 2021. The Company anticipates that the infrastructure upgrades to its cultivation facilities focusing on enhanced quality, will reinvigorate growth within its flower sales. Sales growth over Q1 2021 was driven by increased volumes from the Thunderchild facility becoming operational.
• Record Market Share: 4.3% in April 2022, marking the sixth consecutive month of record market share.
• Cash Flow & Working Capital: Cash flow from operations was $3.0 million in Q1 2022, an improvement of $8 million over Q4 2021 and $6 million over Q1 2021. In Q4 2021, the Company made significant investments in working capital to meet the growing demand for Decibel brands and products and mitigate against supply chain risks. The Company anticipates reduced working capital needs in 2022 and is seeing improvements in its supply chain. The Company has identified various initiatives and capital investments to accelerate cash flow generation and manage working capital levels that are expected to support Q2 2022 onwards.
• Capital Projects: In Q1 2022, the Company made the following progress on its capital projects:
  • The Plant: Completed Phase 1 of its processing hub expansion at The Plant and received its Health Canada license May 2, 2022. This area will include newly automated processing and packaging lines for dried flower, pre-roll, and infused products accompanied by reduced labour and logistics costs.
  • Creston Facility: Completed its infrastructure optimization project which will have an immediate impact on all new harvests, further enhancing product quality and contributing to higher yields.
  • Thunderchild Cultivation Facility: Accelerated its staged infrastructure optimization to better meet growing demand for Decibel products and enhance product quality and yields. Production volumes are expected to be partially impacted in starting in Q2 2022 and resuming full run-rate production by the start of Q4 2022.
• Repayment of Convertible Debentures: On May 11, 2022, the Company repaid its 9.5% convertible debentures with the draw-down of a fixed 4.75% $12 million term loan from its credit facilities. This extends the maturity date of Decibel’s $12 million of debt by 4 years, removes approximately 6% of potential shareholder dilution, and results in $0.6 million of annual interest expense savings.
• New Product Launches: The Company continued its launch of new, unique and innovative products in 2022, including cultivar rotations, expanded infused products into new provinces, the entry of General Admission into the core flower segment, and additional vape line extensions:
  • Introduced Qwest’s new cultivars, with Frosted Cherry Cookies and Icicle launched in May, selling out in the first two weeks.
  • Expanded distribution of infused pre-rolls:
    • Kief-coated terpene infused pre-rolls into ON.
    • Distillate infused pre-rolls into BC, SK, and ON.
    • Diamond infused pre-rolls into BC, SK, and ON.
    • Hash infused pre-rolls into AB and ON.
  • Launched General Admission’s first flower product offering with strong demand early on, representing $950k of net sales in Q1.
  • Launched Orange Tingz (live resin), Peach Ringz (distillate), and Honeydew Boba (distillate) vapes.

Summary Highlights

Decibel’s financial statements for the three month period ending March 31, 2022 (“Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”), are available under the Company’s profile at www.sedar.com. As of March 31, 2022, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada. Thunderchild Cultivation, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements

Non-GAAP Measures

Cautionary Statement Regarding Certain Non-GAAP Measures

This MD&A contains certain financial performance measures that are not recognized or defined under IFRS (termed “Non-GAAP Measures”). As a result, this data may not be comparable to data presented by other licenced producers and cannabis companies. For an explanation of these measures to related comparable financial information presented in the Consolidated Financial Statements prepared in accordance with IFRS, refer to the discussion below. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company. These Non-GAAP Measures include, but are not limited, to the following:

Non-GAAP Financial Measures

Adjusted EBITDA: Adjusted EBITDA is a measure of the Company’s financial performance. It is intended to provide a proxy for the Company’s operating cash flow and is widely used by industry analysts to compare Decibel to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period to period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. Refer to “Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization” for a detailed calculation of this measure. The numbers that are input into this calculation can be found in the statement of financial position in the Company’s Consolidated Financial Statements.

Retail Sales: Retail Sales is a measure intended to provide a more accurate depiction of the revenue earned by the Company’s retail operations. Inventory transferred directly from the Company’s wholesale operations to the Company’s retail operations is removed from Retail Revenue as presented in the Company’s Consolidated Financial Statements.

Gross Sales of Flower: Gross Sales of Flower is a measure intended to provide a more accurate depiction of gross revenue earned by the Company’s wholesale flower operations. Inventory transferred directly from the Company’s wholesale flower operations to the Company’s retail operations is added to Gross Wholesale Revenue of Flower as found in the Company’s Consolidated Financial Statements to arrive at Gross Sales of Flower.

Net Sales of Flower: Net Sales of Flower is a measure intended to provide a more accurate depiction of net revenue earned by the Company’s wholesale flower operations. Excise taxes associated with flower sales are subtracted from Gross Sales of Flower to arrive at Net Sales of Flower.

Gross Sales of Extracts: Gross Sales of Extracts is a measure intended to provide a more accurate depiction of gross revenue earned by the Company’s wholesale extracts operations. Inventory transferred directly from the Company’s wholesale extracts operations to the Company’s retail operations is added to Gross Wholesale Revenue of Extracts as found in the Company’s Consolidated Financial Statements to arrive at Gross Sales of Extracts.

Net Sales of Extracts: Net Sales of Extracts is a measure intended to provide a more accurate depiction of net revenue earned by the Company’s wholesale extracts operations. Excise taxes associated with extracts sales are subtracted from Gross Sales of Extracts to arrive at Net Sales of Extracts.

Working Capital: Working Capital is an indicative measure of the Company’s ability to service its short-term financial obligations with short-term assets. Management believes this measure provides useful information about the Company’s current short-term liquidity. Refer to “Liquidity and Capital Resources” for a detailed calculation of this measure. The numbers that are input into this calculation can be found in the statement of financial position in the Company’s Consolidated Financial Statements.

Accordingly, these Non-GAAP Measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Forward Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to 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 statements.

In this news release, forward-looking statements relate to, among other things, anticipated growth in the Company’s core business and the creation of shareholder value through restructuring the Company’s balance sheet; the initiatives and capital investments the Company has in progress and the target gross margin to be derived therefrom; the Company’s expectation that its infrastructure upgrades will lead to enhanced product quality and growth in its flower sales; the Company’s anticipated working capital needs in 2022; the Company’s expectations that its initiatives and capital investments will accelerate cash flow generation and manage working capital levels and the anticipated timing thereof; the anticipated timing of the receipt of licensing for The Plant and the anticipated benefits to be derived therefrom; the anticipated benefits to be derived from the Company’s infrastructure optimization project at the Creston Cultivation Facility; the anticipated benefits to be derived from the Company’s infrastructure optimization project at its Thunderchild Cultivation Facility and the anticipated timing thereof; the Company’s expectations that it will remain in compliance with all of its financial covenants for the remainder of its twelve-month forecast period; the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations; and Decibel’s other business plans and expectations. 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 the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Forward-looking statements and FOFI (as defined herein) are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the risk that the Company may not remain in compliance with all of its financial covenants; general business, economic, competitive, political and social uncertainties; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. Many of these risks and uncertainties and additional risk factors are described in the Corporation’s Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2021, which are available at www.sedar.com.

With respect to forward-looking statements and FOFI contained in this press release, Decibel has made assumptions regarding, but not limited to: Decibel’s ability to enter new markets and industry verticals; Decibel’s ability to attract, develop and retain key personnel; Decibel’s ability to raise additional capital and to execute on its expansion plans; the timelines for new product launches, Decibel’s ability to continue investing in infrastructure and implement scalable controls, systems and processes to support its growth; the impact of competition; the changes and trends in Decibel’s industry or the global economy; the Company’s ability to generate sufficient cash flow from operations and obtain financing, if needed, on acceptable terms or at all; the general economic, financial market, regulatory and political conditions in which the Company operates; the ability of the Company to ship its products and maintain supply chain stability; consumer interest in the Company’s products; anticipated and unanticipated costs; government regulation of the Company’s activities and products; the timely receipt of any required regulatory approvals; the Company’s ability to conduct operations in a safe, efficient and effective manner; the Company’s construction plans and timeframe for completion of such plans; and the changes in laws, rules, regulations, and global standards.

Any financial outlook or future oriented financial information (in each case “FOFI”) contained in this news release regarding prospective financial position, including, but not limited to: anticipated growth in the Company’s core business and the creation of shareholder value through restructuring the Company’s balance sheet; the initiatives and capital investments the Company has in progress and the target gross margin to be derived therefrom; the Company’s anticipated working capital needs in 2022; the Company’s expectations that its initiatives and capital investments will accelerate cash flow generation and manage working capital levels and the anticipated timing thereof; and that The Plant’s newly automated processing and packaging lines will result in significantly reduced labour and logistics costs, is based on reasonable assumptions about future events, including those described above, based on an assessment by management of the relevant information that is currently available. The actual results will likely vary from the amounts set forth herein and such variations may be material.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements and FOFI contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and FOFI included in this news release are made as of the date hereof and Decibel does not undertake any obligation to publicly update such forward-looking statements and FOFI to reflect new information, subsequent events or otherwise unless so required by applicable securities laws

SOURCE Decibel Cannabis Company 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.

LOS ANGELES, CA / ACCESSWIRE / May 24, 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 first quarter ended March 31, 2022.

Here are some of the notable highlights for the QTR 1 2022:

• The Company generated revenues of $561,321 and $34,930 for the three months ended March 31, 2022, and 2021, respectively. The increase of $526,391 or 1,507% is primarily attributed to the Company’s new acquisition cDistro which distributes CBD and hemp products throughout the USA.
• Ongoing efforts continued to expand into South America and move key parts of the supply chain to Brazil and Uruguay to improve gross margins and overall profitability.
• For the three months ended March 31, 2022, and 2021, MCOA’s gross profit was $51,059 and $9,750, respectively.
• MCOA continues the process of working with VBF Brands Inc. to close the Asset Purchase Agreement. VBF Brands, Inc. is a multi-licensed cannabis cultivation and distribution operation in Salinas, California. The facility provides superior efficiency and sustainable cultivation techniques that allow growers to access locally grown, high-quality clones to grow cannabis crops faster, ensuring greater yields.
• The Company’s total assets increased to $8,105,699 as of the first quarter ended March 31, 2022.
• The Company’s Net Loss for the 1^st Quarter ended March 31, 2022, decreased to $3,290,292 from $3,657,990 for the same period ended March 31, 2021.
• The Company was able to lower cash used in operating activities to $678,108 for the quarter ended March 31, 2022, compared to $962,359 used for the first quarter of 2021.

MCOA’s Chief Executive Officer, Jesus Quintero, said, “This first quarter demonstrates that we are off to an exciting start of 2022. This represents our second consecutive quarter with record revenue growth. Our growth is expected to continue to accelerate into the next quarter as we continue to grow our business. We also remain active in strategic acquisitions that fall into diversified cannabis categories and continue to pursue deals to build scale in our existing markets while continuing to look at opportunities that continue to grow our national footprint in the U.S., as well as in emerging markets such as Brazil and Uruguay.”

For the three months ended March 31, 2022, and 2021, gross profit was $51,059 and $9,750, respectively. This increase of $41,309 was primarily attributed to MCOA’s hempSMART product rebranding and the Company’s new acquisition cDistro which sells CBD and hemp products throughout the USA. Quintero added, “We continue to report positive results reflective of the business initiatives undertaken over the past year and we are excited to continue to expand our global market share.”

For the three months ended March 31, 2022, and 2021, MCOA had net losses from continuing operations of $(835,794) and $(782,917), respectively, an increase of $52,877. This increase is due primarily to the effects of the restructuring of our sales team and strategies for 2022.

The Company has several potential targeted acquisitions in the pipeline that it is completing preliminary due diligence on and remains in aggressive growth mode. As the cannabis market matures, there are several distressed or mismanaged operational companies that the Company can acquire at a deep discount for mostly shares to help support the growth of the Company.

For further information on Form 10-Q, please visit www.sec.gov.

About Marijuana Company of America, Inc.

Marijuana Company of America (MCOA) operates, invests, and acquires exclusively companies in the cannabis sector. The Company is a multi-state (licensed) operator and the parent company within the cultivation, distribution, and international consumer product sectors.

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.

NEWPORT BEACH, CA / ACCESSWIRE / May 17, 2022 / Jacksam Corporation dba Convectium (OTCQB:JKSM) (“Jacksam” or “Convectium” or the “Company”), a workflow automation Company focused on developing system solutions for the cannabis and CBD industry, today announced financial and operational results for the three months ended March 31, 2022.

Key Financial Highlights for Three Months Ended March 31, 2022 (Year-over-Year as Compared with the Three Months Ended March 31, 2021)

• Revenue increased slightly to $1.8 million; due to shipping delays from China
• Record quarterly cartridge sales increased 662% to $0.7 million
• Gross profit decreased 19% to $0.4 million
• Operating expenses as a percentage of revenue declined to 23%, from 29%, reflecting continued focus on optimization
• Operating income decreased slightly to $1,380
• EBITDA decreased slightly to $1,884
• Net income improved to $29,384, from a loss of $8,682
• Cash balance strengthened to $0.8 million

Business Highlights for the Three Months Ended March 31, 2022

• Partnered with Emerald Scientific, LLC to expand the distribution for Convectium’s workflow automation systems and equipment solutions for the cannabis and CBD industry
• Raised $1.0 million in Series B Preferred Stock from two institutional investors
• Cartridge Sales Increased by 662% to Record $0.7 Million

Emerald Scientific, LLC Partnership

On February 28, 2022, Jacksam partnered with Emerald Scientific, LLC making Convectium the exclusive provider of filling and capping systems to Emerald. Emerald Scientific has been an industry leader in the distribution of scientific supplies and equipment to cannabis and hemp labs and manufacturing facilities since 2012.Emerald has a proven track record of being a leading distributor in the space, driven by a world class sales team.

Management Commentary

Mark Adams, Jacksam’s Chief Executive Officer, commented, “We are pleased with our first quarter results, especially our purchase order and interest activity around our 710 Shark filing systems, 710 Captain capping systems, PreRoll-ER pre-roll and cone filling systems and cartridges. We continue to see increased demand for our automated equipment solutions across the cannabis and CBD industries.”

Adams, continued, “While revenue was up just slightly due to lower machine sales, we had record quarterly cartridge sales. Our ability to fulfill customer orders during the quarter was negatively impacted by the lockdown of major cities in China due to Covid-19, which caused shipping issues of systems from China to the U.S. Our continued focus on operation optimization and efficiency led to another decrease of operating expenses as a percentage of revenue.”

Adams, concluded, “We have a strong base having now recorded 6 consecutive quarters of $1.3 to 1.9 million revenue with quarterly operating performance ranging from a negative $0.4 million to a profitable $0.1 million. We believe our strategy of providing automated equipment to address manufacturing and processing bottlenecks of our customers and increasing our predictable recurring revenue has positioned us well to become the premier solution provider in the industry.”

Financial Results for Three Months Ended March 31, 2022

• Revenue for the three months ended March 31, 2022 increased slightly by $0.0 million, or 0%, to $1.8 million, compared to $1.8 million for the three months ended March 31, 2021. For the three months ended March 31, 2022, the breakdown of sales comprised of $1.0 million of system sales and $0.7 million of cartridge sales, compared to $1.6 million of system sales and $0.1 million of cartridge sales for the three months ended March 31, 2021.
• Revenue for the three months ended March 31, 2022 was negatively impacted by the lockdown of major cities in China due to Covid-19, which caused shipping issues of systems from China to the U.S. This adversely impacted our ability to fulfill the order of our customers during the quarter. However, lower machine sales were offset by record quarterly cartridge sales driven by our strong execution of strategic partnership and customer development.
• Gross profit for the three months ended March 31, 2022 decreased by $0.1 million, or 19%, to $0.4 million, compared to $0.5 million for the three months ended March 31, 2021. Gross margin decreased to 24% for the three months ended March 31, 2022, as compared to 29% during the three months ended March 31, 2021, primarily due to a higher mix of cartridge sales.
• Operating expenses for the three months ended March 31, 2022 decreased by $0.1 million, or 18%, to $0.4 million, compared to $0.5 million for the three months ended March 31, 2021. Operating expenses as a percentage of revenue decreased to 23% from 29% for the three months ended March 31, 2022, reflecting the Company’s continued focus on operation optimization and efficiency. Management believes this ratio will decrease going forward as revenues continue to grow at a higher rate than operating expenses.
• Operating income for the three months ended March 31, 2022 decreased slightly by $2,370 to $1,380, compared to $3,750 for the three months ended March 31, 2021.
• Net income for the three months ended March 31, 2022 improved to $29,384, compared to a net loss of $8,682 for the three months ended March 31, 2021. Of note, net income for the three months ended March 31, 2022 included non-cash items of interest expense of $249,094 and a derivative gain of $287,098. The resulting EPS profit for the three months ended March 31, 2022, was $0.00, as compared to an EPS loss of ($0.00) for the three months ended March 31, 2022.
• As of March 31, 2022, Jacksam had $0.8 million in cash, compared to $0.3 million on December 31, 2021.

About Jacksam Corporation dba Convectium

Jacksam Corporation dba Convectium (OTCQB:JKSM) designs and markets automated vape, POD and cartridge filling/capping systems for the cannabis and CBD industry. We are also a distributor of other CBD and cannabis automation solutions including the “PreRoll-ER” automated pre roll machine. Our automated equipment is designed and built in the U.S. and carries full UL certification in the U.S. Using Jacksam/Convectium’s automated equipment, our customers increase output by up to 60 times over hand filling. Jacksam/Convectium is focused on helping our customers automate their workflow and quickly get custom branded products onto dispensary shelves. Over 250 companies, including many dominant brands and multi state operators (MSO’s) in this industry, rely on Jacksam/Convectium for automation of their production and back office operations.

For additional information, please visit: https://www.convectium.com.

Safe Harbor Statement

This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, the Company’s ability to retain the listing of its common stock on the OTCQB Market; the impact of the COVID-19 pandemic on our results of operations and our business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at www.sec.gov.

All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.

Investors Contact:
[email protected]

SOURCE: Jacksam Corp.

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, May 17, 2022 /CNW/ – Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) today announced its financial and operational results for three months ended March 31, 2022 (“Q1 2022”). Halo’s book value- booking investments at actual adjust costs basis after impairments per IFRS guidelines- is $80.7 million. These actual results validate that the Company’s fundamental shift in strategy to incubate and spin out cannabis related companies is expected to create significant value for shareholders.

“Marked to market the Company’s estimated unrealized gain before taxes at March 31, 2021, on Halo’s investment in Akanda was approximately $74.6 million,¹” said Kiran Sidhu, CEO, and Director. “We expect that if the intended acquisition and subsequent spin out of PhytoCann SA (“PhytoCann”) is completed, it will also create substantial value by delivering meaningful revenue and operating profit contribution.²”

First Quarter 2022 Financial and Operational Highlights:

• Akanda Corp. (“Akanda”), Halo’s first incubated company, completed its initial public offering and the listing of its common shares (the “Akanda Shares”) on NASDAQ in March 2022.
• Halo’s consolidated Q1 2022 revenue of $7.6 million declined $2.4 million, or 23.9%, compared to revenue of $9.9 million in Q1 2021. Revenue was impacted by a significant downturn in both the California and Oregon markets. The flower category, which is a leading indicator, sharply declined, with sales falling by 23% in California and 26% in Oregon year over year.³ Adjusted gross profit⁴ was $1.4 million, or 18.7% gross margin, compared to $2.2 million, or 22.1% gross margin, in Q1 2021.
• Halo’s California Wholesale business segment posted positive EBITDA in Q1 2022.
• As of March 31, 2022, the Company had a book value of $80.7 million ($1.65 book value per share).

“In 2022, we intend to develop, grow, and ultimately monetize assets by incubating promising cannabis related businesses while remaining laser focused on optimizing West coast cannabis operations. The planned spinout of Halo Tek Inc. is expected to result in a distribution to all Halo shareholders. The intended acquisition of Phytocann is expected to add significant revenue and EBITDA to the Company in late 2022,” said Katie Field, President, and Director.

“Halo’s California wholesale business segment is EBITDA positive and scaling. We expect to re-achieve positive EBITDA contribution from the Oregon wholesale business segment in the latter half of 2022,” added Joshua Haddox, Chief Operating Officer.

“The Company’s California dispensary business segment officially opened in Q1 and is growing quickly. After a six-month ramp-up period per dispensary, we expect the Los Angeles dispensaries in North Hollywood, Westwood, and Hollywood to contribute positive EBITDA,” commented Beau McKeon, Senior Vice President of Retail Operations.

Cannabis Incubation Strategy Update

• Akanda successfully listed the Akanda Shares on the Nasdaq Capital Market on March 15, 2022, under the ticker symbol “AKAN .”As of March 31, 2022, the Company held a total of 12,674,957 common shares of Akanda, and based on Akanda’s listed stock price per NASDAQ of $7.94 per share on March 31, 2022⁵, the Company had an estimated unrealized gain from Halo’s Akanda investment of $74.6 million.
• Halo Tek Inc. (“Halo Tek”), a wholly owned subsidiary of Halo, filed a preliminary long form prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, other than Québec, for the purpose of qualifying the distribution by Halo to holders of Halo’s common shares (“Halo Shares”) of all of the issued and outstanding common shares in the capital of Halo Tek (the “Halo Tek Shares”) as a return of capital (the “Distribution”). Prior to the Distribution, Halo intends to reorganize its technology assets so that Halo Tek is the owner of all the outstanding shares of Halo DispensaryTrack Software Inc., Halo AccuDab Holdings Inc., Halo Cannalift Delivery Inc., Nasalbinoid Natural Devices Corp., 1265292 B.C. Ltd. (d/b/a Cannafeels), and 1275111 B.C. Ltd.
• Halo signed a letter of intent and entered into exclusive negotiations to acquire Phytocann, one of Europe’s leading wellness CBD companies. Upon closing the acquisition of PhytoCann, PhytoCann is expected to add substantial net revenue and EBITDA and an impressive CBD-based product lineup to Halo.
• The Company also expects its holding in Elegance Brands, Inc., now known as Sway Energy Corporation (“Sway”), to be listed on a major North American exchange in 2022. Halo holds 9,333,333 shares in Sway, and the listing would allow Halo to monetize the position. The Company further holds 5,000,000 Sway warrants exercisable at a price of $0.75 per Sway share.

California Dispensary Rollout Update

The initial phase of Halo’s retail rollout is almost complete. As of May 16, 2022, Halo has opened its North Hollywood dispensary under the Budega brand. The Company’s flagship Westwood dispensary is expected to open by May 27, 2022. The Hollywood location is planned to open by the end of June 2022. After a six-month ramp-up period per store, collectively, dispensaries are expected to contribute $27 million of net revenue and $4 million of operating profit contribution annually.⁶ The Company is in discussions with numerous other dispensary acquisition targets, but there is no assurance that any transaction will be completed.

Wholesale Business Update

California

In Q1 2022, the California wholesale business segment reported revenue of $2.0 million, gross margin of 20.1%, and Adjusted EBITDA⁷ of $0.1 million. These promising results resulted from:

• Expansion of California’s product line to 77 SKUs, including product categories gaining market share.
• Increased distribution from 142 dispensaries on December 31^st, 2021, to 163 on March 31 ^st, 2022. Bad debts have been reduced, and accounts receivable days have decreased.
• Overhauled social media platforms and added brand ambassadors to increase retail sell through and demand at the consumer level.
• Increased white label business reducing fixed overhead costs and contributing to positive net income
• As of April 2022, discontinued operations at Coastal Harvest and consolidated to Outer Galactic Chocolates/Mendocino Distribution and Transportation LLC, which will reduce overheads and increase profitability in Q2 2022.

The Company anticipates Governor Newsom’s tax proposal- which would eliminate cultivation tax starting July 2022– if passed, would further increase profitability and growth of the California business segment.

Oregon

Consolidated Oregon wholesale revenue was $4.9 million with a gross profit of $0.7 million, representing a 13.8% gross margin. Notable operating highlights from this quarter include:

• Increased Oregon’s product lineup to 422 SKUs targeting growing market categories by March 31^st, 2022.
• Decreased distribution of our products to Oregon dispensaries from 478 on December 31, 2021, to 464 on March 31^st, 2022; bad debts have been reduced, and accounts receivable days have decreased.
• Further reductions planned of production overheads and “right sizing” of the business for current revenue and future projections.
• Reduction in outdoor cultivation operations both in scope and cost for the 2022 growing season to decrease working capital expenditure and improve cash flow.

In March 2022, the Oregon legislature signed HB4016, a moratorium that inactivates all marijuana license applications received after January 1, 2022, until March 31, 2024. Additionally, it allows the Oregon Liquor and Cannabis Commission to refuse to issue any new marijuana licenses until further notice. Halo anticipates this favorable policy change will decrease saturation and lead to rising wholesale cannabis prices over time. The net effect of this bill is expected to result in an increase in product profitability in the State of Oregon.

KushBar Canadian Retail Stores

Halo Kushbar Retail Inc. (“Kushbar”) reported $0.6 million in dispensary revenue and a gross margin of 32.2%. Combined, the three Kushbar stores had $1,678 in adjusted EBITDA⁸. As Halo assumes management of the Kushbar locations, the Company expects this segment to contribute to profitability. Management has devised a roadmap to improve the three Alberta stores and increase margin.

• Brand: Management intends to rebrand the stores from Kushbar to Budega. While the stores are aesthetically pleasing, the Company believes that the Budega brand promise — superior quality product, community-centricity, and sunset vibes – will resonate well with Canadian consumers. To achieve this, each store will be refreshed by the end of 2022 with mini makeovers that will reflect that of Budega’s U.S. operating retail outlets.
• Performance: To drive sales performance, the Company plans to methodically assess and rationalize the product assortment to ensure the store stocks the highest velocity items. SKUs held in inventory past 30 days must be sold through and replaced with products that our consumer base desires most.
• Experience: The Company intends to implement proprietary operational systems to shift the focus of frontline employees from “clerking” to ensuring customers leave with every need filled and expectations exceeded. In both U.S. and Canadian operations, we will continue to be laser focused on ensuring each guest interaction is thoughtful and complete. Upon exit, the consumer should not have to stop at any other dispensary for cannabis products.
• Loyalty: Halo believes the current Kushbar loyalty program can be improved by applying the successful Budega approach. By implementing the Budega loyalty program, the Company anticipates Kushbar stores will experience improved sell through, overall guest experience leading to more frequent purchases, larger basket size, and higher average ticket size.

Corporate and Public Company Overheads

Halo corporate overheads were $10.6 million in Q1 2022 compared to $10.9 million in Q4 2021, a 3% decrease. The Company expects more significant reductions through 2022. These reductions include, but are not limited to:

• Professional and legal fees are expected to decline as Halo Tek spins out, the pace of smaller acquisitions declines, and more professional and legal services have been brought in house.
• Executive salaries are expected to be paid in cash by Q3 2022, reducing aggregate costs by 50%.
• General and administrative costs are expected to decline as travel costs abate.

Earnings Conference Call

Halo will host a live webinar at 4:15 p.m. Eastern Time on Wednesday, May 18, 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 May 25, 2022. To access the replay, dial 1-(800) 770-2030 (toll free) or (647) 362-9199 (international) and enter conference ID: 45805.

Please email all questions in advance to [email protected].

Additional Information

Complete results are reported in the Company’s condensed interim consolidated financial statements for the three months ended March 31, 2022, and associated management’s discussion and analysis (the “Q1 2022 MD&A”).

About Halo Collective Inc.

Halo is a multi-national incubation company with assets and operations centered in both THC and non-THC sectors. For the THC sector, Halo is focused on the West Coast of the United States where it has vertically integrated operations covering the entire value chain from seed to sale. Halo cultivates, extracts, manufactures, and distributes quality cannabis flower, pre-rolls, vape carts, edibles, and concentrates. Halo sells these products under a portfolio of brands including Hush, Winberry Farms, Williams Wonder Farms, its retail brand Budega, and under license agreements with Papa’s Herb®, DNA Genetics, and FlowerShop*. 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 in the second quarter of 2022. Halo also operates three Kushbar retail cannabis stores located in Alberta, Canada.

In the non-THC sector, Halo is expanding into health and wellness categories including CBD and functional supplements such as nootropic nutraceuticals and non-psychotropic mushrooms. Halo, through a series of acquisitions, has product offerings in the form of beverages (H2C Beverages), dissolvable strips (Dissolve Medical), capsules (Hushrooms), and topical supplements (Hatshe) with proposed national distribution via a strategic agreement with SWAY Energy Corporation. Halo has entered a letter of intent to acquire Phytocann Holdings, one of Europe’s leading wellness CBD consumer packaged goods companies with a portfolio of value and premium brands including Ivory, Harvest Laboratoires, Easy Weed, Kanolia, Herboristerie Alexandra, Buddies and Ghosty Buds.

As an incubator, Halo has successfully acquired and integrated a variety of companies which were subsequently reorganized to create Akanda Corp. (NASDAQ: AKAN), an international medical cannabis and wellness company, of which Halo currently owns approximately 44% of the common shares. Halo has also acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. Halo 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.

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 Gross Profit and Adjusted EBITDA 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 Gross Profit as Gross Profit adjusted for fair value gains or losses on biological assets, and impairments included in cost of goods sold. Management defines Adjusted EBITDA as earnings (loss) before interest, tax, depreciation, and amortization, as adjusted for non-cash items. 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 Gross Profit and Adjusted EBITDA, please refer to “Non-IFRS Measures” in the Q1 2022 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 expected results of operations and changes to operating expenses currently expected by management, the number of stores to be added by the end of the year, management’s plans regarding its portfolio of cannabis businesses, the proposed acquisition of PhytoCann, revenue outlook, 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 Company’s expansion plans regarding Canada, 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 Oregon 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, 2021 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.

Financial Outlook

This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared to provide an outlook for annual net revenues and operating profit for the Company’s three Budega dispensaries, following a ramp-up period of six-months per location and may not be appropriate for any other purpose. The financial outlook has been prepared based on several assumptions including the assumptions discussed under the heading “Cautionary Note Regarding Forward-Looking Information and Statements” above and assumptions with respect to market conditions, pricing, and demand. The actual results 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 “Cautionary Note Regarding Forward-Looking Information and Statements” above, it should not be relied on as necessarily indicative of future results.

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.

SOURCE Halo Collective Inc.

For further information: Halo Collective Inc., Investor Relations, [email protected], www.haloco.com/investors

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.

Revenue Grew 27% Year Over Year
Non-GAAP Adjusted EBITDA Grew 29% Year Over Year
Company Maintains Full Year 2022 Guidance

NORWOOD, Mass., May 10, 2022 (GLOBE NEWSWIRE) — MariMed, Inc. (OTCQX: MRMD) (“MariMed” or the “Company”), a leading multi-state cannabis operator focused on improving lives every day, today announced its financial results for the first quarter ended March 31, 2022.

“I am very pleased with our solid financial results this past quarter despite a slowdown in our industry coupled with rising inflation in the U.S.,” said Bob Fireman, Chief Executive Officer of MariMed. “We are executing on our strategic growth plan, as evidenced by the recent closings of both our Maryland and Illinois acquisitions. We will continue delivering on our promises to our shareholders, including maintaining our standing as one of the best stewards of capital in our industry.”

CONFERENCE CALL
MariMed management will host a conference call on Wednesday, May 11, 2022, to discuss these results at 8:00 a.m. Eastern time. The conference call may be accessed through MariMed’s Investor Relations website by clicking the following link: MariMed Q122 Earnings Call.

FIRST QUARTER OPERATIONAL HIGHLIGHTS

• Revenue from retail dispensary operations grew 41% compared to the first quarter of 2021, which was driven by a new dispensary in Metropolis, Illinois, and higher customer counts in both Illinois and Massachusetts.
• Revenue from wholesale operations grew 6% compared to the first quarter of 2021 as a result of both the increased production from MariMed’s manufacturing facility and the increased number of licensed dispensary clients in Massachusetts.
• Revenue from licensing, management fees, and real estate income increased 2% compared to the first quarter of 2021 as a result of the continued success of the Company’s award-winning brands that are licensed in seven states and Puerto Rico, as well as growth in the Company’s managed businesses.
• The Company launched Vibations: High + Energy, entering the fast-growing beverage category with a line of THC-infused powdered drink mixes in Massachusetts.
• The Company licensed its award-winning portfolio of branded edibles, including Betty’s Eddies, Bubby’s Baked, k Fusion, and Vibations: High + Energy, to its partner in Delaware.

SIGNIFICANT BUSINESS DEVELOPMENTS
Subsequent to the end of the first quarter 2022, the Company announced the following significant business developments:

• April 7: The Company announced it filed a preliminary non-offering long-form prospectus in Canada. The Company also intends to apply to list its common shares on the Canadian Securities Exchange (CSE). The Company believes trading on the CSE will increase liquidity for shareholders and provide easier access to Canadian retail and institutional investors, in addition to U.S. investors on the OTCQX market.
• April 28: The Company announced it closed on the acquisition of Kind Therapeutics USA, LLC (“Kind”), a leading vertically integrated cannabis operation in Maryland, that MariMed developed and managed for several years. The Company now operates a cultivation and processing facility in a 180,000 square foot industrial building in Hagerstown and plans to open and operate a medical dispensary in Annapolis later this summer.
• May 5: The Company announced it closed on the acquisition of a craft cannabis license in Illinois, enabling MariMed to become fully vertical in this high-growth state. Construction of a new cultivation and processing facility in Mount Vernon, Illinois is underway. When completed, the Company expects to sell its portfolio of award-winning brands in its four Thrive dispensaries and into the Illinois wholesale marketplace. The Company expects this will lead to increased revenue and gross margins in Illinois beginning in late 2022.

2022 FINANCIAL GUIDANCE MAINTAINED
The Company maintained its previous financial guidance for fiscal year 2022, including:

• Revenue of $145 million to $150 million.
• Gross margin in line with fiscal 2021 gross margin of 54% to 55%
• Non-GAAP Adjusted EBITDA of $47 million to $52 million.
• Capital Expenditures of approximately $25 million.

“We ended the first quarter with a cash balance of $33.5M and generated positive cash flow from operations of $8.5 million. Our strong first quarter financials during an industry-wide slowdown, gives us confidence we will meet or beat our financial guidance for 2022,” said Jon Levine, Chief Financial Officer of MariMed.

The table below reconciles Net Income to Adjusted EBITDA:

DISCUSSION OF NON-GAAP FINANCIAL MEASURES
The Company has provided in this release non-GAAP Adjusted EBITDA as a supplement to Revenues, Gross Profit, and other financial measures prepared in accordance with GAAP.

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 and amortization of intangible assets;
• non-cash expenses on debt and equity issuances;
• impairment or write-downs of intangible assets;
• unrealized gains and losses on investments and currency translations;
• legal settlements;
• gains or losses from the extinguishment of debt via the issuance of equity;
• discontinued operations; and
• merger- and acquisition-related transaction expenses.

Management believes Non-GAAP Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides 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 Adjusted EBITDA to understand and compare operating results across accounting periods, and for financial and operational decision making. The presentation of non-GAAP Adjusted EBITDA 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 Adjusted EBITDA in assessing the Company’s financial results and its ongoing business as it allows for meaningful comparisons and analysis of trends in the business. 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 measurements, 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.

For further information, please refer to the Company’s Quarterly Report on Form 10-Q for the three month period ended March 31, 2022 available on MariMed’s Investor Relations website at www.ir.marimedinc.com or on Edgar’s website at www.SEC.gov.

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, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations: High + Energy. For additional information, visit www.marimedinc.com.

IMPORTANT CAUTION REGARDING FORWARD LOOKING STATEMENTS:
This release contains certain forward-looking statements and information relating to MariMed Inc. that is based on the beliefs of MariMed Inc.’s management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events, including consummation of pending transactions, launch of new products, expanded distribution of existing products, obtaining new licenses, estimates and projections of revenue, EBITDA and Adjusted EBITDA and other information about its business, business prospects and strategic growth plan which are based on certain assumptions of its management, including those described in this release. These statements are not guaranteeing 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 risk factors are included in the Company’s public filings with the Securities and Exchange Commission. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as “hoped,” “anticipated,” “believed,” “planned, “estimated,” “preparing,” “potential,” “expected,” “looks” or words of a similar nature. The Company does not intend to update these forward-looking statements. None of the content of any of the websites referred to herein (even if a link is provided for your convenience) is incorporated into this release and the Company assumes no responsibility for any of such content.

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: [email protected]

Media Contact:
Trailblaze PR
Email: [email protected]

Company Contact:
Howard Schacter, Chief Communications Officer
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.

• Consolidated Revenue Increased 34% Year-Over-Year to $70.2 Million; Net Loss of $6.5 Million Primarily Due to Inflationary Pressures on Produce Business
• Canadian Cannabis Business Contributes Record 14^th Consecutive Quarter of Positive Adjusted EBITDA
• Pure Sunfarms Remains Top-Selling Dried Flower Brand in Ontario, Alberta and British Columbia
• Integrations of Balanced Health Botanicals and Rose Lifescience Proceeding Well with Each Contributing Positive Adjusted EBITDA

VANCOUVER, BC, May 10, 2022 /PRNewswire/ – Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF) today announced its financial results for the first quarter ended March 31, 2022. All figures are in U.S. dollars unless otherwise indicated.

Management Commentary

“The first quarter of 2022 once again demonstrated the strength and earnings power of both our Canadian and U.S. Cannabis businesses,” said Michael DeGiglio, Chief Executive Officer, Village Farms International. “In what is a typically soft season for retail sales in Canada, both Pure Sunfarms and Rose gained share in their respective focus markets, and delivered a 14^th consecutive quarter of positive adjusted EBITDA for Canadian Cannabis. Pure Sunfarms’ products continue to resonate with consumers, as our continued focus on quality, innovation and new product launches strengthen what has become one of the most respected and trusted brands in the Canadian market. In Quebec, we estimate that Rose is now a top three Licensed Producer by sales following strong market share gains since retail launch early last year. Rose is well positioned to continue this momentum throughout 2022, further benefitting from the many opportunities for collaboration with Pure Sunfarms. With our Canadian Cannabis business continuing to grow sales and market share domestically, we look forward to capitalizing on Pure Sunfarms’ recent EU GMP certification to commence exportation to international markets.”

“Our U.S. Cannabis segment delivered a solid performance, highlighted by a strong gross margin and positive adjusted EBITDA contribution. The integration of Balanced Health into the Village Farms family is progressing very well and confirms our belief in both the potential within the existing cannabinoid business and the significant near- and long-term opportunities in both the low-THC and high-THC product categories.”

“As our Cannabis operations continued to deliver strong growth and profitability, Village Farms Fresh (Produce) faced one of the most difficult macro environments in its history. Strong revenue growth was more than offset by the inflationary impact of freight, labor, fertilizer, packaging and other cost increases. An industry-wide supply imbalance limited the producer’s ability to pass along pricing to customers. We are evaluating new initiatives, including marketing partnerships to build more scale, spread costs and diversify product offerings. However, even in the currently negative EBITDA environment, we maintain the highest conviction that our U.S. cultivation footprint is a powerhouse opportunity for legal recreational cannabis when we can participate.”

Mr. DeGiglio concluded, “Consumer takeaway trends during the first quarter further validated our brand and cultivation strategies. We expect continued momentum throughout 2022 and beyond as each of our cannabis businesses continues to launch innovative new products that address evolving consumer demand. We remain focused on seizing opportunities to continue to deliver top-tier profitability and market share in the high-growth global cannabis market.”

First Quarter Financial Highlights

(All comparable periods are for First Quarter, 2021)

Consolidated

• Consolidated sales increased 34% year-over-year to $70.2 million from $52.4 million;
• Consolidated net loss was ($6.5 million), or ($0.07) per share, compared with ($7.4 million), or ($0.10) per share; and,
• Consolidated adjusted EBITDA was negative ($6.1 million) compared with positive adjusted EBITDA of $0.4 million.

Cannabis

• Total Cannabis segment net sales increased 65% year-over-year to $28.8 million, representing 41% of total Village Farms sales; and,
• Total Cannabis segment adjusted EBITDA increased 9% year-over-year to $2.7 million.

Canadian Cannabis (Pure Sunfarms and Rose LifeScience) Financial Summary for the Three Months Ended March 31, 2022 and March 31, 2021

• Canadian Cannabis net sales increased 25% year-over-growth with a gross margin of 34% (within the Company’s stated target range) and adjusted EBITDA of $2.1 million (C$2.7 million).

Canadian Cannabis Performance Summary

Canadian Cannabis’ Percent of Sales by Product Group¹

U.S. Cannabis (Balanced Health Botanicals and VF Hemp)

• U.S. Cannabis net sales were $7.0 million, with a gross margin of 67% and adjusted EBITDA of $0.6 million. There are no year-over-year comparisons since Balanced Health Botanicals was acquired by Village Farms on August 16, 2021.

Village Farms Fresh (Produce)

• Sales increased 19% to $41.4 million; and adjusted EBITDA was negative ($6.2 million).

Strategic Growth and Operational Highlights

• Pure Sunfarms received EU GMP certification for its 1.1 million square foot Delta 3 cannabis production facility, permitting Pure Sunfarms to export EU GMP-certified medical cannabis to importers and distributors in international markets that require EU GMP certification;
• Pure Sunfarms launched 29 new SKUs across four product categories and remained the top-selling brand of dried flower products in key markets of Ontario, Alberta and British Columbia*;
• Based on third-party data, it is estimated Rose LifeScience is a top-three Licensed Producer in Quebec; and,
• The integrations of Balanced Health Botanicals (acquired in the third quarter of 2021) and Rose LifeScience (acquired in the fourth quarter of 2021) are proceeding well. Each company expanded its product offerings in the first quarter of 2022:

_{*Based on OCS market data for the quarter ended March 31, 2022 and sales information provided by Buddi retail store data from over 300 retailers across Alberta and British Columbia as of March 31, 2022.}

Presentation of Financial Results

The Company’s financial statements for the three months ended March 31, 2022, as well as the comparative periods for 2021, have been prepared and presented under United States Generally Accepted Accounting Principals (“GAAP”). Balanced Health was acquired on August 16, 2021 and their results are presented in the operations of our consolidated wholly-owned subsidiaries for the three months ended March 31, 2022. The Company acquired 70% of Rose LifeScience on November 15, 2021 and their results are presented in the operations of our consolidated wholly-owned subsidiaries and the minority interest is presented in Net Income (Loss) Attributable to Non-controlling Interests, Net of Tax for the three months ended March 31, 2022.

RESULTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)

Consolidated Financial Performance

We caution that our results of operations for the three months ended March 31, 2022 and 2021 may not be indicative of our future performance, particularly in light of the ongoing COVID-19 pandemic. We are currently unable to assess the ultimate impact of the COVID-19 pandemic on our business and our results of operations for future periods.

Discussion of Financial Results

SEGMENTED RESULTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)

A detailed discussion of our consolidated and segment results can be found in the 10Q MD&A on the Village Farms website under Financial Reports (https://villagefarms.com/financial-reports/) within the Investors section.

Reconciliation of Net Income to Adjusted EBITDA

The following table reflects a reconciliation of net income to Adjusted EBITDA, as presented by the Company:

This press release is intended to be read in conjunction with the Company’s Consolidated Financial Statements (“Financial Statements”) and Management’s Discussion & Analysis (“MD&A”) for the three months and year ended March 31, 2022 in the Company Form 10-Q, which will be filed on (www.sec.gov/edgar.shtml) and SEDAR (www.sedar.com) and will be available at www.villagefarms.com.

Our Response to the Ongoing Coronavirus Pandemic

In March 2020, the World Health Organization declared the outbreak of the COVID-19 virus a global pandemic. This outbreak continues to cause major disruptions to businesses and markets worldwide as the virus continues to spread. Several countries as well as certain states and cities within the United States and Canada have enacted temporary closures of businesses, issued quarantine or shelter-in-place orders and taken other restrictive measures. In response to the COVID-19 pandemic, the Company implemented safety protocols and procedures to protect its employees, its subcontractors, and its customers. These protocols take into consideration guidance from state and local government agencies as well as the Centers for Disease Control and Prevention and other public health authorities.

As of May 9, 2022, all of the Company’s operations are operating normally, however, the extent to which COVID-19 and the related global economic crisis affect the Company’s business, results of operations and financial condition, will depend on future developments that are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and any recovery period, future actions taken by governmental authorities, central banks and other third parties (including new financial regulation and other regulatory reform) in response to the pandemic, and the effects on our produce, clients, vendors and employees. Village Farms continues to service its customers amid uncertainty and disruption linked to COVID-19 and is actively managing its business to respond to the impact.

Conference Call

Village Farms’ management team will host a conference call today, Monday, May 10, 2022, at 8:30 a.m. ET to discuss its financial results. Participants can access the conference call by telephone by dialing (416) 764-8659 or (888) 664-6392, or via the Internet at: https://bit.ly/3LwGlTM.

For those unable to participate in the conference call at the scheduled time, it will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. To access the archived conference call by telephone, dial (416) 764-8677 or (888) 390-0541 and enter the passcode 334813 followed by the pound key. The telephone replay will be available until Monday, May 17, 2022 at midnight (ET). The conference call will also be archived on Village Farms’ website at http://villagefarms.com/investor-relations/investor-calls.

About Village Farms International, Inc.

Village Farms leverages decades of experience as a large-scale, Controlled Environment Agriculture-based, vertically integrated supplier for high-value, high-growth plant-based Consumer Packaged Goods opportunities, with a strong foundation as a leading fresh produce supplier to grocery and large-format retailers throughout the US and Canada, and new high-growth opportunities in the cannabis and CBD categories in North America and selected markets internationally.

In Canada, the Company’s wholly-owned Canadian subsidiary, Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of Canada’s best-selling brands. The Company also owns 70% of Québec-based, Rose LifeScience, a leading third-party cannabis products commercialization expert in the Province of Québec.

In the US, wholly-owned Balanced Health Botanicals is one of the leading CBD brands and e-commerce platforms in the country. Subject to compliance with all applicable US federal and state laws and stock exchange rules, Village Farms plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country (more than 5.5 million square feet in West Texas), as well as the operational and product expertise gained through Pure Sunfarms’ cannabis success in Canada.

Internationally, Village Farms is targeting selected, nascent, legal cannabis and CBD opportunities with significant medium- and long-term potential, with an initial focus on the Asia-Pacific region and Europe.

Cautionary Statement Regarding Forward-Looking Information

This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is subject to the safe harbor created by those sections. This Press Release also contains “forward-looking information” within the meaning of applicable Canadian securities law. We refer to such forward-looking statements and forward-looking information collectively as “forward-looking statements”. Forward-looking statements may relate to the Company’s future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable industry or the cannabis industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms as “outlook”, “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “try”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, “objectives”, or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history, including that of Rose LifeScience Inc. (“Rose”), Balanced Health Botanicals, LLC (“Balanced Health”), Pure Sunfarms, Inc.(“Pure Sunfarms”) and our operations of growing hemp in the United States; the legal status of Pure Sunfarms, Rose and Balanced Health cannabis business; risks relating to the integration of Balanced Health and Rose into our cannabis business; risks relating to obtaining additional financing, including our dependence upon credit facilities; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; market position, ability to leverage current business relationships for future business involving hemp and cannabinoids, the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada; existing and new governmental regulations, including risks related to regulatory compliance and licenses (e.g., Pure Sunfarms ability to obtain licenses for its Delta 2 greenhouse facility as well as additional licenses under the Canadian act respecting cannabis to amend to the Controlled Drugs and Substances Act, the Criminal Code and other Acts, S.C. 2018, c. 16 (Canada) for its Delta 3 greenhouse facility), and changes in our regulatory requirements; risks relating to conversion of our greenhouses to cannabis production for Pure Sunfarms; risks related to rules and regulations at the U.S. federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; the ongoing and developing COVID-19 pandemic; and tax risks.

The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, that may cause the Company’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company’s filings with securities regulators, including this Press Release. In particular, we caution you that our forward-looking statements are subject to the ongoing and developing circumstances related to the COVID-19 pandemic, which may have a material adverse effect on our business, operations and future financial results.

When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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.