Company Reports Second-Highest Quarterly Revenue Figure Ever by a Cannabis Company Reporting in Canadian Dollars

CALGARY, Alberta, March 17, 2022–(BUSINESS WIRE)–High Tide Inc. (“High Tide” or the “Company“) (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, filed its financial results for the first fiscal quarter of 2022, ended January 31, 2022, the highlights of which are included in this news release. The consolidated financial statements for the three months ended January 31, 2022 and the accompanying management’s discussion and analysis can be accessed by visiting the Company’s website at www.hightideinc.com, and its profile pages on SEDAR at www.sedar.com, and EDGAR at www.sec.gov.

Fiscal First Quarter 2022 – Financial Highlights:

• Revenue increased to $72.2 million in the first quarter of 2022 compared to $38.3 million in the same quarter last year. Sequentially, revenue increased by 34% compared to the fourth quarter of 2021.
• Gross profit increased by 56% to $23.0 million in the first quarter of 2022 compared to $14.8 million in the same quarter last year. Sequentially, gross profit increased by 31% compared to the fourth quarter of 2021.
• Gross profit margin in the first quarter of 2022 was 32% compared to 39% in the same quarter last year. Sequentially, gross profit margin decreased by 1% compared to the fourth quarter of 2021.
• Adjusted EBITDA¹ for the first quarter of 2022 was $3.0 million compared to $4.6 million for the same quarter last year. Sequentially, Adjusted EBITDA increased by 80% compared to the fourth quarter of 2021.
• Geographically in the first quarter of 2022, $52.4 million of revenue was earned in Canada, $17.4 million in the United States and $2.3 million internationally. Compared to the first quarter of 2021, revenue increased by 53% in Canada, 346% in the United States, and 1,016% internationally. Sequentially, revenue earned increased by 22% in Canada, 65% in the United States, and 455% internationally, compared to the fourth quarter of 2021.
• Annual run rate revenue in the United States is now $75 million, and total annual run rate revenue outside of Canada is now $85 million.
• Segment-wise in the first quarter of 2022, $71.0 million of revenue was generated by Retail, $1.2 million by Wholesale, and an immaterial amount by Corporate.
• Cabanalytics data sales were $4.7 million in the first quarter of 2022 compared to $1.5 million for the same quarter last year. Sequentially, Cabanalytics data sales increased by 17% compared to the fourth quarter of 2021.
• For locations operational throughout the first fiscal quarter of 2022 and 2021, same-store sales decreased by 1%. Sequentially, same-store sales increased by 13% from the fourth fiscal quarter of 2021 to the first fiscal quarter of 2022.
• In assessing performance at the end of the quarter compared to prior to the implementation of the discount club model, on a same-store sales basis, the Company’s stores in the month of January 2022 were on a run rate which was 22% higher than revenue generated by these stores in October 2021, despite the fact that the overall size of the Canadian retail cannabis market was reported to be 3% lower in January 2022 compared to October 2021. Given the success of the discount club model, the Company anticipates same-store sales to continue to increase in the second fiscal quarter of 2022 and beyond.
• Cash on hand as of January 31, 2022 was $10.1 million.

“I’m proud of our team delivering such a strong quarter in a challenging business environment. This past quarter’s results, showcasing 34% sequential revenue growth and 80% sequential increase in Adjusted EBITDA, re-affirms our exponential, yet sustained growth trajectory. We continue to execute on our business plan quarter after quarter by strategically expanding our business in Canada and internationally through organic growth and accretive M&A across our diversified ecosystem. Our forward-thinking approach makes us a leader amongst our peer group in Canada, as we keep introducing innovative retail concepts such as our discount club model, while remaining agile and pivoting quickly when needed due to the constantly evolving dynamics in the global cannabis landscape,” said Raj Grover, President and Chief Executive Officer of High Tide. “With these results, we have now achieved the second-highest quarterly revenue figure ever reported by a Canadian cannabis company that reports in Canadian dollars, and with our growth plans for the remainder of this year, we remain confident in further meaningful increases to our revenue profile. As Canada’s largest cannabis retailer, we continue to consolidate the bricks-and-mortar market at attractive multiples while simultaneously growing our e-commerce business portfolio. From same-store sales increases to the rapid growth in our Cabana Club loyalty program, including generating higher consolidated gross margins through our complimentary ecosystem, we continue to raise the bar on our operational execution. Our recent entry into Germany positions us well to take advantage of significant growth opportunities in Europe’s largest cannabis market. Our imminent entry into British Columbia and ongoing expansion in Ontario will further propel our growth over the next few quarters. We practically doubled our EBITDA this quarter and believe this growth will continue to accelerate as we remain hyper focussed in executing on our business plan,” added Mr. Grover.

First Fiscal Quarter 2022 – Operational Highlights:

• Membership in the Cabana Club loyalty program increased to over 381,000 members as of January 31, 2022, from 245,000 at the launch of the Company’s discount club model.
• The Company opened 6 new Canna Cabana locations: 3 in Saskatchewan, 2 in Alberta, and 1 in Ontario.
• On November 29, 2021, the Company acquired an 80% interest in NuLeaf Naturals LLC, with an option to acquire the remaining 20% within three years of closing.
• The Company announced a definitive agreement to acquire 100% of Bud Room Inc., including Fastendr retail kiosk and smart locker technology, on January 5, 2022.

Subsequent Events:

• Retail store expansion continued with 3 new Canna Cabana locations: 2 in Alberta and 1 in Ontario. The Company’s total store count as of today is 113 across Canada.
• Cabana Club membership increased to 451,419 members as of today, representing an increase of 84.3% since the launch of the discount club model on October 20, 2021.
• The Company closed the acquisition of Bud Room Inc. on February 10, 2022, securing ownership of Fastendr retail kiosk and smart locker technology.
• The Company celebrated the milestone of 420,000 Cabana Club members by launching an exclusive car giveaway contest, the results of which will be announced on April 20, 2022.
• The Company announced a definitive agreement to acquire Crossroads Cannabis, which includes four established retail cannabis stores in Ontario, on March 3, 2022. The transaction is expected to close in the coming weeks.
• The Company was recognized as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50, which is comprised of the top 50 companies from over 1,600 companies on the TSX Venture Exchange.
• The Company’s subsidiary, FAB CBD, launched a Subscribe-and-Save discount program in the United States on March 7, 2022.
• The Company’s subsidiary, Blessed CBD, launched online sales of its premium hemp-derived CBD products in Germany on March 9, 2022.
• The Company launched cannabis delivery on demand through its Canna Cabana locations in Ontario, Manitoba, and Saskatchewan on February 22, 2022, and in Alberta on March 8, 2022.
• All five Canna Cabana locations in Ottawa have been equipped with Fastendr technology, which is helping to further differentiate the Company’s already-unique retail concept. The Company expects to have at least 15 additional Canna Cabana locations equipped with this exciting technology by the end of April.

Selected financial information for the first quarter ended January 31, 2022:

(Expressed in thousands of Canadian Dollars)

The following is a reconciliation of Adjusted EBITDA to Net Loss:

Outlook:

High Tide continues to have a leading position in the Canadian bricks-and-mortar cannabis market with 113 locations across the country. The Company’s launch of an innovative discount club model in its retail stores near the end of the fourth fiscal quarter of 2021 has delivered encouraging results to date, with same-store sales having continued to accelerate throughout the first fiscal quarter of 2022. As previously stated, the Company reported revenue of $72.2 million in the first fiscal quarter of 2022, which is the second-highest quarterly revenue figure ever reported by a Canadian cannabis company that reports in Canadian dollars. Through organic growth and accretive M&A, the Company expects to continue to increase its revenue through the second fiscal quarter of 2022, and the remainder of the year. By the end of the 2022 calendar year, the Company intends to grow its Canadian retail store portfolio to at least 150 locations, with a primary focus on the Province of Ontario. The Company also plans to enter the British Columbia market in the near-term and will continue growing strategically in other provinces where it currently operates. Although challenges still remain as a result of the ongoing COVID-19 pandemic, the Company is confident and has demonstrated that it will be able to remain on a positive growth trajectory.

Beyond growing its bricks-and-mortar retail footprint and same-store sales, the Company has started implementing its customized Fastendr technology, which it expects will both drive greater efficiency, by lowering overhead and labour costs, and improve customer experience. All five of the Company’s stores in Ottawa are now equipped with the Fastendr technology, with expectations to have this exciting technology added to another 15 stores by the end of April 2022. The Company expects to have all of its Canna Cabana locations outfitted with this technology by the end of the 2022 calendar year. The Company also anticipates that it will be able to launch its exclusive lineup of Cabana Cannabis Co. white label products in April 2022. Canna Cabana launched its cannabis delivery on demand service in all provinces where it operates and anticipates a future launch in British Columbia upon its entry into that province’s market.

The Company also has firm plans to build upon its existing momentum in the international hemp-derived CBD and consumption accessories e-commerce sectors, where it made six acquisitions during the 2021 calendar year and grew its revenue outside of Canada run rate by over seven times, to approximately $80 million. Throughout 2022, High Tide will continue to integrate and expand CBD brands that it acquired in 2021, including NuLeaf Naturals, FAB CBD, and Blessed CBD. The Company recently launched a subscribe-and-save service in the United States through its subsidiary, FAB CBD. Through its United Kingdom-based subsidiary, Blessed CBD, the Company entered the German market with the organic sale of premium hemp-derived CBD products on its e-commerce platform. In addition to growing its in-house brands, High Tide intends to continue growing its online retail portfolio through further strategic and accretive acquisitions.

High Tide Earnings Event Webcast:

The Company will host a webcast and conference call to discuss their unaudited results and outlook at 5:30 PM (Eastern Time) today, Thursday, March 17, 2022.

Webcast Link for High Tide Earnings Event:

https://events.q4inc.com/attendee/372657250

Participants may pre-register for the webcast by clicking on the link above prior to the beginning of the live webcast. Three hours after the live webcast, a replay of the webcast will be available at the same link above.

Participants may access the audio of the High Tide earnings event through either the new webcast format, or the conference call line below. However, any participant who wishes to ask a question must access the event via conference call, as the webcast does not support live questions.

Canada Dial-In Number (Toll-Free): +1 833 950 0062
Canada Dial-In Number (Local): +1 226 828 7575
United States Dial-In Number (Toll-Free): +1 844 200 6205
United States Dial-In Number (Local): +1 646 904 5544
Dial-In Number for All Other Locations: +1 929 526 1599
Participant Access Code: 019155

*Participants will need to enter the participant access code before being met by a live operator*

ABOUT HIGH TIDE

High Tide is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 113 current locations spanning Ontario, Alberta, Manitoba, and Saskatchewan. High Tide was featured in the third annual Report on Business Magazine’s ranking of Canada’s Top Growing Companies in 2021 and was named as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50. The Company is also North America’s first and only cannabis discount club retailer, featuring Canna Cabana, Meta Cannabis Co., and Meta Cannabis Supply Co. banners, with additional locations under development across the country. High Tide’s portfolio also includes retail kiosk and smart locker technology – Fastendr. High Tide has been serving consumers for over a decade through its established e-commerce platforms including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more recently in the hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, and BlessedCBD.de, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value.

Neither the 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.

For more information about High Tide Inc., please visit www.hightideinc.com, its profile page on SEDAR at www.sedar.com, and its profile page on EDGAR at www.sec.gov.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events.

The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, the proposed acquisition of Crossroads Cannabis); the Company’s future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company’s business and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the impact of the COVID-19 pandemic on the Company’s current and future operations; the market for the Company’s current and proposed product offerings, as well as the Company’s ability to capture market share; the Company’s strategic investments and capital expenditures, and related benefits; the distribution methods expected to be used by the Company to deliver its product offerings; the competitive landscape within which the Company operates and the Company’s market share or reach; the performance of the Company’s business and the operations and activities of the Company; the Company will add the number of additional cannabis retail store locations the Company proposes to add to the Company’s business, with a primary focus on the Province of Ontario and near-term British Columbia market focus and remaining on a positive growth trajectory; same-store sales continuing to increase in the second quarter of 2022 and beyond; the Company making meaningful increases to its revenue profile; the Company growing in the German market; the results of the car giveaway contest being announced on April 20, 2022; the Company deploying Fastendr technology across the Company’s retail stores in Ottawa and other provinces, upon the timelines disclosed herein, resulting in greater efficiencies, by lowering overhead and labour costs, and improving the customer experience; the Company continuing to increase its revenue through the second fiscal quarter of 2022, and the remainder of the year; the Company launching its exclusive lineup of Cabana Cannabis Co. white label products on the timelines disclosed herein; the Company launching delivery services in British Columbia upon its entry into the province; the Company building upon its existing momentum in the international hemp-derived CBD and consumption accessories e-commerce sectors; the Company continuing to integrate and expand its CBD brands; the Company completing the development of its cannabis retail stores; the Company’s ability to generate cash flow from operations and from financing activities; the Company’s ability to obtain, maintain, and renew or extend, applicable authorizations, including the timing and impact of the receipt thereof; the realization of cost savings, synergies or benefits from the Company’s recent and proposed acquisitions (including, without limitation, Bud Room and Crossroads Cannabis), and the Company’s ability to successfully integrate the operations of any business acquired within the Company’s business; the Company’s intention to devote resources to the protection of its intellectual property rights, including by seeking and obtaining registered protections and developing and implementing standard operating procedures; the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2022; Cabana Club loyalty program membership continuing to increase; the Company reaching its goal of leading global cannabis across all business segments in which they operate; the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2022; the Company hitting its forecasted revenue and sales projections for the second quarter of 2022; and the Company continuing to grow its online retail portfolio through further strategic and accretive acquisitions.

Forward-looking information in this press release are based on certain assumptions and expected future events, namely: current and future members of management will abide by the Company’s business objectives and strategies from time to time established by the Company; the Company will retain and supplement its board of directors and management, or otherwise engage consultants and advisors having knowledge of the industries (or segments thereof) within which the Company may from time to time participate; the Company will have sufficient working capital and the ability to obtain the financing required in order to develop and continue its business and operations; the Company will continue to attract, develop, motivate and retain highly qualified and skilled consultants and/or employees, as the case may be; no adverse changes will be made to the regulatory framework governing cannabis, taxes and all other applicable matters in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business in the future; the Company will be able to generate cash flow from operations, including, where applicable, distribution and sale of cannabis and cannabis products; the Company will be able to execute on its business strategy as anticipated; the Company will be able to meet the requirements necessary to obtain and/or maintain authorizations required to conduct the business; general economic, financial, market, regulatory, and political conditions, including the impact of the COVID-19 pandemic, will not negatively affect the Company or its business; the Company will be able to successfully compete in the cannabis industry; cannabis prices will not decline materially; the Company will be able to effectively manage anticipated and unanticipated costs; the Company will be able to maintain internal controls over financial reporting and disclosure, and procedures in order to ensure compliance with applicable laws; the Company will be able to conduct its operations in a safe, efficient and effective manner; general market conditions will be favourable with respect to the Company’s future plans and goals; the Company will reach the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2022; the Company will complete the acquisition of Crossroads Cannabis; the Company will hit its forecasted revenue and sales projections for the second quarter of 2022; Cabana Club loyalty program membership will continue to increase; the Company will reach its goal of leading global cannabis across all business segments in which they operate; the Company will deploy Fastendr technology across the Company’s retail stores, upon the timelines disclosed herein, resulting in greater efficiencies, by lowering overhead and labour costs, and improve the customer experience; the Company will launch its exclusive lineup of Cabana Cannabis Co. white label products on the timelines disclosed herein; same-store sales will continue to increase in the second quarter of 2022 and beyond; the Company will make meaningful increases to its revenue profile; the Company will grow in the German market; the Company will give away a car; the Company will continue to increase its revenue through the second fiscal quarter of 2022, and the remainder of the year; the Company will launch delivery services in British Columbia upon its entry into the province; the Company will build upon its existing momentum in the international hemp-derived CBD and consumption accessories e-commerce sectors; the Company will continue to integrate and expand its CBD brands; the Company will continue to grow its online retail portfolio through further strategic and accretive acquisitions; the Company will add the additional cannabis retail store locations to the Company’s business and remain on a positive growth trajectory; and the Company will complete the development of its cannabis retail stores.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company’s inability to attract and retain qualified members of management to grow the Company’s business and its operations; unanticipated changes in economic and market conditions (including changes resulting from the COVID-19 pandemic) or in applicable laws; the impact of the publications of inaccurate or unfavourable research by securities analysts or other third parties; the Company’s failure to complete future acquisitions (including, without limitation, the proposed acquisition of Crossroads Cannabis) or enter into strategic business relationships; interruptions or shortages in the supply of cannabis from time to time available to support the Company’s operations from time to time; unanticipated changes in the cannabis industry in the jurisdictions within which the Company may from time to time conduct its business and operations, including the Company’s inability to respond or adapt to such changes; the Company’s inability to secure or maintain favourable lease arrangements or the required authorizations necessary to conduct the business and operations and meet its targets; the Company’s inability to secure desirable retail cannabis store locations on favourable terms; risks relating to projections of the Company’s operations; the Company’s inability to effectively manage unanticipated costs and expenses, including costs and expenses associated with product recalls and judicial or administrative proceedings against the Company; risk that the Company will not acquire Crossroads Cannabis; risk that the Company will not reach the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2022; risk that the Company will not hit its forecasted revenue and sales projections for the second quarter of 2022; risk that Cabana Club loyalty program membership will decrease and/or plateau; risk that the Company will not reach its goal of leading global cannabis across all business segments in which they operate; risk that the Company will be unable to deploy Fastendr technology across the Company’s retail stores or upon the timelines disclosed herein; risk that the Company will be unable to launch its exclusive lineup of Cabana Cannabis Co. white label products on the timelines disclosed herein or at all; risk that same-store sales will not increase, but decease and/or plateau; risk that the Company will be unable to increase its revenue profile; risk that the Company will be unable to increase its revenue through the second fiscal quarter of 2022, and the remainder of the year, but that it will decease and/or plateau; risk that the Company will be unable to grow in the German market; risk that the Company will be unable to give away a car; risk that the Company will be unable to expand into British Columbia; risk that the Company will not launch delivery services in British Columbia upon entry into the province; risk that the Company will be unable to build upon its existing momentum in the international hemp-derived CBD and consumption accessories e-commerce sectors; risk that the Company will be unable to continue to integrate and expand its CBD brands; risk that the Company will be unable to grow its online retail portfolio through further strategic and accretive acquisitions; risk that the Company will be unable to add additional cannabis retail store locations to the Company’s business and remain on a positive growth trajectory; and risks that the Company will be unable to complete the development of any or all of its cannabis retail stores.

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

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

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI“) within the meaning of Canadian securities legislation, about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the heading above entitled “Cautionary Note Regarding Forward-Looking Statements” and assumptions with respect to the costs and expenditures to be incurred by the Company, capital expenditures and operating costs, taxation rates for the Company and general and administrative expenses. Management does not have, or may not have had at the relevant date, firm commitments for all of the costs, expenditures, prices or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not, or may not have been at the relevant date of the FOFI, objectively determinable.

Importantly, the FOFI contained in this press release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing for the Company’s products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company’s business, (iii) the Company’s ongoing inventory levels, and operating cost estimates, and (iv) the Company’s unaudited financial results for the three months ended January 31, 2022. The FOFI or financial outlook contained in this press release do not purport to present the Company’s financial condition in accordance with IFRS as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Cautionary Note Regarding Forward-Looking Statements” and under the heading “Risk Factors” in the Company’s public disclosures, FOFI or financial outlook within this press release should not be relied on as necessarily indicative of future results.

Readers are cautioned not to place undue reliance on the FOFI, or financial outlook contained in this press release. Except as required by Canadian securities laws, the Company does not intend, and does not assume any obligation, to update such FOFI.

¹ Adjusted EBITDA is a non-International Financial Reporting Standards (“IFRS“) financial measure.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005893/en/

Contacts

Media Inquiries
Omar Khan
Senior Vice President – Corporate and Public Affairs
[email protected]

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
[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.

VANCOUVER, BC / ACCESSWIRE / February 1, 2022 /Lotus Ventures Inc. (CSE:J)(OTC PINK:LTTSF) (“Lotus” or the “Company“), announced today financial results for its first fiscal quarter ended November 30, 2021. During the quarter the Company realized a slowdown in sales due to COVID limitations, supply chain disruptions and less volume of product purchased by wholesale partners. Our thoughts go out to the local farmers and growers that were also affected.

First Quarter Results:

• Revenue of $410 thousand compared to $1.3 million in the prior years’ first quarter. The decrease in quarterly sales was due to several factors, including the ones listed above. The Company is in the process of securing additional wholesale relationships to reduce sales risk and reliance on individual LP’s.
• Although operating at a reduced level during the quarter, Lotus was able to operate at a profit and with strong margins. Net income in the quarter was $65 thousand, compared to a net loss of $339 thousand in the prior years’ first quarter.
• Gross margin before fair value adjustments remained above 40%. Lotus attributes its strong margins to its proprietary production process which was designed to produce high-quality cannabis at a low-cost per gram.

Strain Development:

The Company has continued its in-house strain development with 30 varieties now germinated for testing. Lotus plans on transitioning to a second high THC premium strain which is expected to be submitted during an upcoming product listing call with a provincial wholesaler.

Outlook for 2022:

The Company remains focused on improving its sales position and liquidity throughout the coming year. The Company is currently in discussions with three licensed producer’s which are interested in Lotus wholesale flower supply. In addition to continuing wholesale efforts, Lotus is expecting to allocate a portion of its production to its own pre-roll and flower offerings to diversify sales into the recreational market.

In January, Kolab Project launched a 10 pack of 0.35-gram Lotus grown Kalifornia pre-rolls on the Ontario Cannabis Store which is expected to be another strong selling offering. In aggregate, Lotus and Kolab have launched a 3.5-gram flower offering, a 14-gram flower offering, and a 10 pack of 0.35-gram pre-roll offering.

The Company’s priorities moving forward this year are:

• Restore sales momentum and secure additional wholesale transactions.
• Transition to selling a second high THC premium cannabis strain.
• Introduce Lotus pre-roll and flower offerings to diversify sales risk and add sales growth.
• Continue production consistency in both volume (avg. 70,000 grams a crop) and in THC (generally now over the 23% threshold and up to 25%).
• Convert the current inventory of high-quality flower to cash.
• Obtain COVID relief capital which the Company is eligible for $157,000 in wage subsidy grants.

The following financial information is derived from the Company’s Management Discussion and Analysis for the quarter ended November 30, 2021:

The Quarterly Financial Statements and Management Discussion and Analysis for the period are both available on sedar.com

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

About Lotus Ventures Inc.

Lotus Ventures Inc. (CSE:J) is a Canadian licensed producer and the owner of Lotus Cannabis Co., a premium consumer brand in Canada. Lotus operates as a wholesale company and has reached consumers in nine provinces to date through wholesale partners. Lotus’ best-selling strains have built a strong brand reputation which has led to our flower being sold in both the premium and ultra-premium segments of the market. Lotus looks to launch its own product offerings in the recreational market over the next year and has a collection of unique cannabis strains in development.

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

For Further Information:

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

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

Visit our website at lotuscannabis.ca or follow our brand on social media.

Twitter:@lotuscannabisco, LinkedIn:@lotuscannabisco, Instagram:@lotuscannabiscoFacebook: @lotuscanna

Forward-Looking Information:

The information contained within this news release has been prepared by Lotus Ventures Inc. This document includes certain statements that are not descriptions of historical facts but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for medical and recreational cannabis products, our expectations regarding the continued growth of the medical and recreational cannabis market, as well as all assumptions, expectations, predictions, intentions, or beliefs about future events. Users are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties have not been documented or mentioned in this document nor other communications made by the company. The words “believe,” “expect,” “anticipate,” “project,” “targets,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Lotus Ventures Inc.

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

About Ryan Allway

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

VANCOUVER, British Columbia., Nov. 10, 2021 (GLOBE NEWSWIRE) — InMed Pharmaceuticals Inc. (“InMed” or the “Company”) (Nasdaq: INM), a leader in the development, manufacturing and commercialization of rare cannabinoids, today announced financial results for the first quarter of fiscal year 2022 which ended September 30, 2021.

“The first quarter of fiscal 2022 saw positive momentum across all of our programs,” says Eric A. Adams, InMed President & CEO. “With the completion of the BayMedica Inc. (“BayMedica”) acquisition, our integrated teams are working together to identify rare cannabinoids in BayMedica’s pipeline for commercialization in the consumer health and wellness industry. For the duration of fiscal year 2022, we will be focused on growing revenues through the launch of these selected rare cannabinoids, in addition to expanding sales of BayMedica’s Prodiol® CBC (cannabichromene) and progressing our existing programs.”

Business Update

BayMedica
On October 13, 2021, InMed completed the acquisition of BayMedica creating an industry leader in the manufacturing and commercialization of rare cannabinoids. Management’s immediate focus is to expedite the integration of both companies and accelerate commercial activities including driving wholesale B2B revenues of BayMedica’s current Prodiol® CBC product to the consumer health and wellness sector.

Management anticipates introducing several new, rare cannabinoids over the next few quarters with a specific focus on high demand, attractive margin products and expects to grow revenues considerably in the short-to-medium term.

Additionally, both InMed and BayMedica science teams will continue to explore the therapeutic potential of BayMedica novel cannabinoid analogs to incorporate into the Company’s pharmaceutical drug development programs.

IntegraSyn
The Company continues to further optimize IntegraSyn as a solution for large-scale, pharmaceutical-grade Good Manufacturing Practice (“GMP”) production of rare cannabinoids. The team is currently focused on process optimization to prepare the manufacturing process to be GMP-ready for pharmaceutical quality production. Next step is to advance production to a larger batch and continue to improve upon the previously announced industry leading yield of 5g/L.

The Company continues to believe IntegraSyn will be a preferred method for pharmaceutical production and may dovetail with BayMedica’s biosynthesis and chemical synthesis manufacturing approaches for non-pharmaceutical applications.

INM-755 for the treatment of Epidermolysis Bullosa (“EB”)
On September 30, the Company announced it had commenced its Phase 2 clinical trial, the 755-201-EB study, of INM-755 (cannabinol) cream in the treatment of EB, marking the first time cannabinol has advanced to a Phase 2 clinical trial to be studied as a therapeutic option to treat a disease. Additionally, InMed has submitted a request for a pre-Investigational New Drug (“IND”) meeting with the US Food and Drug Administration (“FDA”) to discuss potential next steps in the INM-755 clinical program.

The 755-201-EB study is designed to enroll up to 20 patients. InMed will evaluate the safety of INM-755 (cannabinol) cream and its preliminary efficacy in treating symptoms and wound healing over a 28-day treatment period. All four subtypes of inherited EB; EB Simplex, Dystrophic EB, Junctional EB, and Kindler Syndrome are eligible for this study.

The study is expected to take place at eleven sites across seven countries including Austria, Germany, Greece, France, Italy, Israel and Serbia and regulatory authority and ethics approvals are in place in five countries. Currently, Clinical Trial Agreements are fully executed with 5 sites and patient screening is underway at the first site. The Company is seeking to expand the study into an eighth country, Spain, with two more sites.

The 755-201-EB study follows two completed Phase 1 studies of INM-755 (cannabinol) cream, including treatment on intact skin and treatment on wounded skin, both in healthy volunteers. The Phase 1 studies provided a strong body of evidence demonstrating the overall safety and tolerability of INM-755 cream.

INM-755 (cannabinol) cream is a topical therapy to treat EB and potentially other dermatological diseases. Preclinical data demonstrate that INM-755 (cannabinol) cream may help relieve hallmark EB symptoms, such as inflammation and pain, as well potentially restore the integrity of the skin in a subset of EB Simplex patients.

INM-088 for the treatment of glaucoma
On August 17, 2021, InMed presented preclinical data at the H.C. Wainwright Ophthalmology Conference demonstrating that cannabinol (“CBN”) was effective at providing neuroprotection to the retina ganglion cells and reducing intraocular pressure in glaucoma models. InMed has continued to develop a larger scale drug product manufacturing process, completed dose-ranging studies and conducted topline clinical study design work with its clinical research organization.

Data from preclinical studies of INM-088 show the effectiveness of cannabinol at reducing cell death in retinal ganglion cells, an indication of potential neuroprotection which may lead to extended retention of vision in glaucoma and other ocular diseases.

We continue to work towards completing our preclinical studies of our glaucoma program in preparation for human clinical trials and estimate to file regulatory applications in the second half of fiscal 2022 seeking to initiate human clinical testing with INM-088.

PCT Application
On November 3, 2021, InMed filed an international patent application seeking commercial exclusivity for the potential treatment of neurodegenerative diseases such as Alzheimer’s Disease, Parkinson’s Disease, Huntington’s Disease and others by demonstrating neuroprotection and enhanced neuronal function using a rare cannabinoid.

This Patent Cooperation Treaty (“PCT”) application, entitled “Compositions and Methods for Treating Neuronal Disorders with Cannabinoids”, specifies a rare cannabinoid that may inhibit or slow the progression of neurodegenerative diseases by providing neuroprotection and promote neurite outgrowth in a population of affected neurons.

Expanding InMed’s patent portfolio to include, in addition to CBN, an incremental rare cannabinoid for the potential treatment of major neurodegeneration indications demonstrates the Company’s continued commitment to it’s pharmaceutical programs and the potential of rare cannabinoids in treating important diseases.

InMed will be hosting analyst update teleconferences on a semi-annual basis, with the next teleconference to be hosted for the second quarter 2022 fiscal results. InMed also plans to host a webinar to discuss the integration of BayMedica and outline corporate plans for calendar year 2022.

Financing Activities and Results of Operations (expressed in US Dollars):

On July 2, 2021, the Company closed a $12.0 million private placement. Under the terms of the private placement, an aggregate of 890,000 common shares and 3,146,327 pre-funded warrants, and warrants to purchase up to an aggregate of 4,036,327 common shares, were purchased. The warrants have an exercise price of $2.848 per share, are exercisable immediately and have a term of five years. After deducting the placement agent fees and estimated offering expenses payable by the Company, the Company received net proceeds of approximately $11.0 million.

For the three months ended September 30, 2021, the Company recorded a net loss of $3.0 million, or $0.25 per share, compared with a net loss of $1.6 million, or $0.31 per share, for the three months ended September 30, 2020.

Research and development expenses were $1.5 million for the three months ended September 30, 2021, compared with $0.9 million for the three months ended September 30, 2020. The increase in research and development and patents expenses was primarily due to increased activities related to the INM-755 clinical trials.

The Company incurred general and administrative expenses of $1.4 million for the three months ended September 30, 2021, compared with $0.6 million for the three months ended September 30, 2020. The increase results primarily from a combination of changes including higher insurance fees resulting from the Company’s listing on the Nasdaq Capital Market and higher legal fees, personnel expenses and investor relation expenses.

At September 30, 2021, the Company’s cash, cash equivalents and short-term investments were $15.4 million, which compares to $7.4 million at June 30, 2021. The increase in cash, cash equivalents and short-term investments during the three months to September 30, 2021, was primarily the result of the July 2, 2021 private placement partially offset by cash outflows from operating activities.

At September 30, 2021, the Company’s total issued and outstanding shares were 10,327,034, or 14,137,034 including all outstanding pre-funded warrants which are considered common share equivalents. During the three months ending September 30, 2021, including the pre-funded warrants, the weighted average number of common shares was 12,047,555, which is used for the calculation of loss per share for the interim periods.

Learn more about InMed’s Pharmaceutical Programs: https://www.inmedpharma.com/pharmaceutical/cannabinoids-in-development/

Learn more about InMed’s Cannabinoid Manufacturing Capabilities: https://www.inmedpharma.com/manufacturing/cannabinoid-manufacturing-capabilities/

About InMed: InMed Pharmaceuticals is a global leader in the manufacturing and development of rare cannabinoids. Together with our subsidiary, BayMedica, we have unparalleled cannabinoid manufacturing capabilities to serve a spectrum of consumer markets, including pharmaceutical and health and wellness. We are a clinical-stage company developing a pipeline of rare cannabinoid therapeutics and dedicated to delivering new treatment alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs. For more information, visit www.inmedpharma.com.

Investor Contact:
Colin Clancy
Senior Director, Investor Relations
T: +1 604 416 0999
E: [email protected]

Edison Group:
Joe Green/Laine Yonker
T: +1.646.653.7030/+1.646.653.7035
E: [email protected] / [email protected]

Cautionary Note Regarding Forward-Looking Information:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “potential”, “possible”, “would” and similar expressions. Such statements, based as they are on current expectations of management, inherently involve numerous risks, uncertainties and assumptions, known and unknown, many of which are beyond our control. Forward-looking information is based on management’s current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes statements about: identifying rare cannabinoids for commercialization in the consumer health and wellness industry; expanding sales of BayMedica’s products including the introduction of new products; exploring the therapeutic potential of novel cannabinoid analogs; preparing IntegraSyn to be GMP ready and as a preferred method for pharmaceutical production of cannabinoids; the 755-201-EB study enrolling up to 20 patients to study the safety and preliminary efficacy of INM-755 (cannabinol) cream; INM-755 (cannabinol) cream treating EB and potentially other dermatological diseases; expanding the 755-201-EB study into Spain; the potential of cannabinol to reduce cell death in retinal ganglion cells; completing INM-088 preclinical studies and filing regulatory applications in the second half of fiscal 2022; hosting future webinars to discuss plans for 2022; being a global leader in the manufacturing and development of rare cannabinoids; and delivering new treatment alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs.

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: the anticipated results and potential of BayMedica’s business; continued economic and market stability; delivering new therapeutic alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs; advancing IntegraSyn to commercial scale production; IntegraSyn being a commercially viable solution for large-scale, pharmaceutical-grade GMP production of rare cannabinoids; and developing a pipeline of cannabinoid-based pharmaceutical drug candidates. While InMed considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.

Additionally, there are known and unknown risk factors which could cause InMed’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks and uncertainties facing InMed’s stand-alone business is disclosed in InMed’s Annual Report on Form 10-K and other filings with the Security and Exchange Commission on www.sec.gov.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

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.

TACOMA, WA / ACCESSWIRE / June 28, 2021 / IONIC BRANDS CORP. (CSE:IONC)(OTC PINK:IONKF)(FRA:IB3A) (“IONIC BRANDS” or the “Company”) is a regional manufacturer of innovative cannabis consumables and concentrate extract products. The Company is pleased today to be reporting its proforma, unaudited financial results for the three months ended March 31, 2021. All currency references used in this press release are in U.S. dollars unless otherwise noted. The Company intends to file the condensed consolidated interim financial statements and the management discussion and analysis for the three-month period ended March 31, 2021 no later than July 5, 2021.

Financial Highlights for the quarter ended March 31, 2021 (proforma, unaudited, expressed in US Dollars)¹:

* See “Non-IFRS Financial Measures” below for more information regarding Ionic Brands ‘s use of Non-IFRS financial measures and other reconciliations.

** Q1 2021 including results from Cowlitz County Cannabis asset acquisition, effective March 8, 2021.

***Adjusted EBITDA from operations, excludes corporate financing and M&A fees associated with the Cowlitz asset acquisition.

Revenue increased to $4.182 million in the first quarter of 2021, as compared to $1.657 million in the fourth quarter of 2020, representing a 153% increase. This strong quarter over quarter sales growth was driven primarily by the closing of the Cowlitz County Cannabis (“Cowlitz”) asset acquisition in March of this year. The Company acquired an additional 6 brands, increasing our total portfolio size to 10 brands in the Washington and Oregon markets.

Gross margin was 17.3% in the first quarter of 2021 compared to 18.2% in the fourth quarter of 2020. The 0.9 basis point reduction quarter over quarter is due to the mix of revenue earned in the quarter. New, lower margin streams of revenue came online during Q1 from the Cowlitz asset acquisition and brokerage sales. The Company anticipates gross margin will increase in Q2 and beyond as higher margin sales from retail locations via Ionic Brands’ dedicated wholesale partners are expected, while realizing lower input costs from the use of contract raw material partners. Furthermore, quarter-on-quarter margin improvement is expected as biomass yields increase at the Company’s manufacturing partners.

John Gorst, CEO of Ionic Brands commented, “After Ionic Brands’ strong growth this quarter with total revenue of over $4 million, the Company is on track to have our first half of 2021 revenues exceed the full fiscal year 2020 revenue of $9.0 million. We are rapidly growing sales due to the substantial investments we recently made in infrastructure. Working capital and inventory have started to deliver operating leverage, while our team continues to meet the evolving needs of our customers, retail partners and communities.”

Mr. Gorst continued, “Demand for Ionic Brands’ products in the Washington and Oregon markets is robust as cannabis continues to behave like a consumer staple. We have established a 46,000 square foot manufacturing facility in Washington, allowing our manufacturing partners to increase their annual production capacity by 6x. This new facility, solely dedicated to our brands, also contains multiple indoor grow rooms that enables us to fully integrate the supply chain in the Washington market and expands our partners existing growing capacity in our southern Washington facility, located at the Cowlitz manufacturing site.

Furthermore, we recently closed the “OPS” acquisition of a fully licensed and equipped manufacturing facility in Estacada, Oregon, which now gives Ionic Brands full operating control over the manufacturing and distribution of our products in the Oregon market. The acquisition of the Oregon facility will allow us to produce up to an average of 1.4 million units per year, which is expected to result in annual increased revenues of $15 million and a projected positive increase of 8% to 10% on gross margin due to operating efficiencies.

Moreover, Ionic Brands now has over 60,000 square feet of combined manufacturing space, versus just 9,000 sq feet in Q4-2020, which should be a strong initial production platform to serve a national market when federal legalization happens. This is all made possible by the hard-working and dedicated team members we have at all levels of the organization.”

Mr. Gorst concluded, “Overall, we continue to execute on our growth strategy in 2021. We are excited to build on our momentum and are already seeing great performance evidenced by continued expansion of our retail distribution network and production and manufacturing footprint.”

Q1-2021 Operational Updates and Highlights

1. Ionic Brands extended its brand portfolio to the Massachusetts market through its partners M2 and local licensed operator The Pass. We expect our products to be available on retail shelves in Massachusetts in July 2021 and continue to pursue similar licensing agreements in other limited-license states.
2. Ionic Brands reached an agreement with its secured bondholders to convert $15.1 million of debt into preferred shares with additional debt settlements of over $1.2 million in debt for cash and stock, substantially improving our balance sheet and liquidity.
3. Ionic Brands completed the acquisition of assets of Cowlitz, the 5th largest wholesale operator in the state of Washington with over $18 million in revenue in 2020 (unaudited). This acquisition expanded our brand portfolio to include a full suite of flower brands to complement Ionic Brands’ strong roster of edibles, flower, liquids, and inhalable concentrates. Based on government agency data, when viewed collectively, Ionic Brands manufacturing partners’ amount to the fifth-largest wholesale operator in Washington by revenue for the period of 2020. The acquisition of Cowlitz does not include the I-502 license as the state of Washington has limited ownership restrictions. Ionic Brands does own an irrevocable option to purchase the license when state ownership rules are relaxed or changed.
4. Ionic Brands completed a capital raise of CAD $14.7 million, which netted approximately USD $7.8 million in working capital after transaction and professional fees and funded the $1.75 million cash payment on the Cowlitz asset acquisition. The Company’s cash balance at the end of March 31, 2021 is approximately $4.9 million.
5. Ionic Brands entered the wholesale-brokerage arena, including a licensing agreement with Dutchman’s Trading Services to build and provide an electronic commodities exchange platform for supply chain materials in the Pacific Northwest. The Company is quickly expanding this service into multiple markets in 2021 to secure supply chains and introduce our brands into those markets through manufacturing and licensing arrangements. Unaudited revenues generated from these services during Q1-2021were $838,244 representing over 4 million units sold.
6. Ionic Brands combined entities sold 804,607 units into its retail distribution network in the Pacific Northwest markets in Q1-2021, an increase of 530,016 units or 293% from 274,228 units sold in Q4-2020.

Fiscal 2021 Outlook ¹

While the Company is not providing full-year revenue guidance, management anticipates that top-line revenues in Q2-2021 from its operations will increase 50-60% compared to 2020 reported financial results, primarily due to the acquisition of the assets of Cowlitz. In addition, management expects gross margin improvements to continue throughout 2021, including a significant increase in Q2-2021 gross margin versus Q1-2021 due to improved output/scale from its manufacturing facilities, and improved input costs from volume-based purchasing capability. Furthermore, Management anticipates the Company will achieve positive cash flows in Q3-2021.

Notes:

1. These preliminary and unaudited financial results are subject to customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Cautionary Note Regarding Forward-Looking Information and Statements” and “Financial Outlook”.

About Ionic Brands Corp.

The Company is dedicated to building a regionally based multi-state consumer packaged goods company with a highly respected cannabis concentrate brand portfolio with strong roots in the premium and luxury segments of vape, concentrates, flower and consumables. The cornerstone Brand of the portfolio, IONIC, is a top concentrates brand in Washington State along with its economy brand Dabulous and has aggressively expanded throughout the Pacific Northwest of the United States. The brand is currently operating in Washington and Oregon. IONIC BRANDS’ strategy is to be the leader of the highest-value segments of the cannabis market.

On behalf of IONIC BRANDS CORP.

John Gorst
Chairman & Chief Executive Officer

For more information visit www.ionicbrands.com or contact:
[email protected]
+1.253.248.7927

To stay better informed on the current events of the company, you can join our investor community at https://www.ionicbrands.com/investor-community

Explanatory Note Regarding the Company’s Operations

References in this news release to the Company and its operations and assets are inclusive of the operations and assets of certain licensed cannabis operators that operate under the Ionic Brands brand pursuant to contractual arrangements with the Company. For additional information, please refer to the Company’s disclosure documents available on the Company’s profile at www.sedar.com.

Non-IFRS Financial Measures

The Company has provided certain non-IFRS financial measures including “Gross Margin” and Adjusted EBITDA. These non-IFRS financial measures do not have a standardized definition under IFRS, nor are they calculated or presented in accordance with IFRS and may not be comparable to similar measures presented by other companies. The Company defines “Gross Margin” as Gross divided by Revenue. The Company calculates Adjusted EBITDA as net income as reported adjusted to exclude the impact of the following items: fair value adjustment of sale of inventory, provision for income taxes, foreign exchange (gain)loss, change in fair value of investments, interest expense, share based compensation, depreciation and amortization, costs associated with public listing, impairment loss, loss on financial instruments and gain on sale of fixed assets.

The Company has provided these non-IFRS financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. The Company believes that these supplemental non-IFRS financial measures provide a valuable additional measure to use when analyzing the operating performance of the business. 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. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein.

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. While legal in certain states, cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation. Investors should carefully read the risk factors and disclosures contained in the Company’s Management Discussion and Analysis (“MD&A”) for the year ended December 31, 2020 and other disclosure documents available on the Company’s profile at www.sedar.com.

Caution Regarding Cannabis Operations in Washington State

Holders of marijuana licenses in Washington are subject to significant regulation. Such regulation creates a number of risks unique to such holders, especially when compared to the holders of marijuana licenses in other U.S. states. In addition, the Washington State Liquor and Cannabis Board (“LCB”) has historically taken an aggressive approach to enforcing the applicable regulations. Washington law specifically prohibits out-of-state ownership or control of marijuana licenses and requires that any person or entity who provides financing to the holder of a marijuana license be subject to rigorous scrutiny. These laws significantly limit how out-of-state companies and non-licensed companies may transact with marijuana licensees. What may appear to be a minor violation may result in irreparable harm as the LCB has cancelled marijuana licenses as a punishment for a first offense of a regulatory violation related to ownership and control. While consulting agreements, service arrangements, and intellectual property agreements are generally permissible and appear to be acceptable to the LCB, a licensee who enters into such transactions with an out-of-state or non-licensed company runs the risk of the licensee’s business being suddenly terminated if the LCB perceives any concern about ownership and control of the licensee. Investors in the Company must be aware that the Company faces the risk of total business loss if a Washington licensee the Company relies upon has its license cancelled. There is significant risk and uncertainty regarding an investment in the Company.

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 Ionic Brands ‘s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Ionic Brands ‘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”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, statements about the anticipated expansion of the Company’s operations and growing capacity in Washington, projected financial results for the second quarter of 2021, potential acquisitions and the Company’s prospects and the cannabis market generally in the states of Washington.

By identifying such information and statements in this manner, Ionic Brands 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, Ionic Brands has made certain assumptions. Although Ionic Brands 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: unexpected costs or delays in the completion of the Company’s proposed dispensaries and other operations; negative results experienced by the Company as a result of general economic conditions or the ongoing COVID-19 pandemic; delays in the ability of the Company to obtain certain regulatory approvals; unforeseen delays or costs in the completion of the Company’s construction projects; adverse changes to demand for cannabis products; ongoing projects by competitors that may impact the relative size of the Company’s operations; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets; and the other risks disclosed in the Company’s MD&A for the year ended December 31, 2020 and other disclosure documents available on the Company’s profile at www.sedar.com .

The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Ionic Brands 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.

Financial Outlook

This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the second quarter of 2021 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 in this press release and assumptions with respect to market conditions, pricing, and demand. 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 “Cautionary Note Regarding Forward-Looking Information and Statements”, it should not be relied on as necessarily indicative of future results.

Third Party Information

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

SOURCE: IONIC Brands 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.

ESCONDIDO, CA / ACCESSWIRE / June 2, 2021 / Marijuana Company of America, Inc. (OTC PINK:MCOA), a diversified holding company with operations and investments in various private and publicly traded companies diversified throughout the cannabis industry, today announced its financial results for the quarter ended March 31, 2021, and provided an update on its corporate developments.

Highlights from the Quarter Ended March 31, 2021:

• Current assets grew to $1,738,978 as of March 31, 2021 compared to $537,593 at December 31, 2020, representing a dramatic 223% increase in only three months.
• Cash at end of first quarter 2021 was $639,983 as compared to $55,251 at the end of December 31, 2020, providing the company with more funds for acquisitions and operations.
• Full migration to e-commerce sales platform started in Q1
• Rebranding of hempSMART CBD Products to Promote Mental and Physical Wellness
• Named Board Member Marco Guerrero as Executive Vice president of the Company’s hempSMART Brazil and hempSMART Uruguay subsidiaries.
• Signed Strategic Collaboration Agreement with Eco Innovation Group Inc. (OTC: ECOX)
• Announced International Logistics and Distribution Agreement for hempSMART CBD Products with fulfillment.com, an award-winning order fulfillment company serving high-volume national and global ecommerce brands.
• Released hempSMART Powder Mix Drink, a powdered premium CBD drink
• Assisted JV partner, Cannabis Global Inc. (OTC: CBGL) with increasing revenue potential at the cannabis manufacturing facility in Lynwood, CA that MCOA owns a direct interest in.

MCOA’s Chief Executive Officer, Jesus Quintero, said, “We are very pleased with all the efforts and achievements we accomplished during the first quarter. It was a busy quarter as we initiated our international sales efforts, rebranded our hempSMART products, and for the first time launched our own e-commerce platform. We are poised for growth and have the necessary capital to deploy in order to secure key acquisition targets. Our total assets nearly doubled in the last three months since year-end, despite the challenges of operating during the pandemic. We expect sales to increase during the rest of 2021 as our new e-commerce sales platform and rebranding begins to be recognized.”

The Company generated revenues of $34,930 and $81,819 for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021 and 2020, MCOA also reported net operating losses of $782,917 as compared to $392,157, respectively. This increase in the loss was due principally to a substantial change in valuation of derivatives.

The marginal increase in losses quarter over quarter were primarily attributed to the restructuring of MCOA’s sales team and migration to new e-commerce platform, compliance with regulatory requirements for rebranding of products, as well as significant infrastructure development of MCOA’s website.

For more information visit www.sec.gov.

Form a copy of the Form 10-Q for the quarter ended March 31, 2021, please click here.

About Marijuana Company of America Inc.

Marijuana Company of America Inc. is a diversified holding company with wholly owned subsidiaries and financial investments in various private and publicly traded companies across the Cannabis industry emerging company offering unique exposure to the global cannabis sector. Marijuana Company of America Inc. (MCOA) changed its strategy in 2020 and focused on acquisitions, as well as its sales & marketing efforts of MCOA’s wholly owned hempsmart premium brand of hemp-based CBD (legal cannabidiol) products both domestically and internationally. Strategic decisions and long-range planning have also led the company to pivot away from farming and focus on supplying the cannabis industry across an ever-expanding market landscape.

Legal Status of Cannabis

While legalized in California for recreational and medicinal use, cannabis remains a Schedule 1 drug under the Controlled Substances Act (21 U.S.C. § 811) and illegal under the federal law.

Forward-Looking Statements

This news release contains “forward-looking statements,” which are not purely historical and may include any 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

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.

Sale of Canada’s largest single brand network of 92 retail cannabis stores to Sundial Growers for $131 million announced earlier in May

CALGARY, AB, May 31, 2021 /CNW/ – Inner Spirit Holdings Ltd. (“Inner Spirit” or the “Company“) (CSE: ISH) (OTCQB: INSHF), a Canadian company that has established a national network of Spiritleaf retail cannabis stores, today announced it has filed its consolidated financial statements for the quarter ended March 31, 2021 and corresponding management’s discussion and analysis, as well its amended and restated audited consolidated financial statements for the years ended December 31, 2020 and 2019 and corresponding management’s discussion and analysis. The filings are available for review on the Company’s SEDAR profile at www.sedar.com and the Company’s website at www.innerspiritholdings.com. Further information regarding the prior period restatement can be found under the “Prior Period Restatement” section of this news release.

“The Company’s financial results for the first quarter of the year were consistent with our expectations as we posted revenue of $8.8 million and recorded system-wide retail sales¹ of $35.9 million through the Spiritleaf store network. We again achieved positive Adjusted EBITDA¹ and positive cash flow from operations in the quarter. Our now-proven ability to manage costs and operate efficiently as we build out the Spiritleaf network of stores bodes well for future growth. The recent transaction announced with Sundial Growers will put us in a great position to expand our business and work with Sundial to develop synergies that benefit both organizations once we complete it early in the third quarter of 2021,” said Darren Bondar, President and CEO of Inner Spirit.

Financial Results

Inner Spirit reported the following financial highlights for the quarter ended March 31, 2021. A reconciliation of the non-IFRS financial measures can be found under the “Non-IFRS Financial Measures” section of this news release.

• Total revenue was $8.8 million, an increase of 113% compared with $4.1 million in the first quarter of 2020.
• System-wide retail sales¹ was $35.9 million, an increase of 109% compared with $17.2 million in the first quarter of 2020. System-wide retail sales¹ represent the aggregate revenue earned by franchised Spiritleaf retail cannabis stores and corporate-owned Spiritleaf retail cannabis stores, and do not solely represent the Company’s revenue. The Company only receives royalties and advertising fees in respect of the franchised Spiritleaf retail cannabis store revenue forming part of the system-wide retail sales.
• Gross profit was $4.1 million or a gross margin of 47.0%, compared with $2.0 million or a gross margin of 47.6% in the first quarter of 2020.
• Operating loss before other expenses was $0.3 million, compared with $0.7 million in the first quarter of 2020.
• Total net loss was $2.4 million, or $0.01 per share, compared with a total net loss of $1.6 million, or $0.01 per share, in the first quarter of 2020².
• Adjusted EBITDA¹ was $0.5 million, an improvement of $0.6 million compared with an Adjusted EBITDA¹ loss of $0.1 million in the first quarter of 2020.
• Cash flow provided by operations was $0.2 million, an improvement of $1.7 million compared with cash flow used in operations of $1.5 million in the first quarter of 2020.
• Cash increased to $13.3 million as at March 31, 2021, compared with $2.6 million as at March 31, 2020. During the quarter, the Company completed a bought deal offering for proceeds of approximately $11.5 million.

Sundial Transaction

Subsequent to the quarter, on May 5, 2021, the Company announced it had entered into an arrangement agreement (the “Agreement“) with Sundial Growers Inc. (“Sundial“) (NASDAQ: SNDL) pursuant to which Sundial will acquire all of the issued and outstanding common shares of Inner Spirit for total consideration of approximately $131 million (the “Transaction“).

Under the terms of the Agreement, Inner Spirit’s shareholders will receive, for each Inner Spirit common share held, (i) $0.30 in cash and (ii) 0.0835 of a Sundial common share (representing $0.09 per Inner Spirit common share based on the 10-day volume-weighted average price (“VWAP“) of Sundial common shares on the Nasdaq Capital Market on May 4, 2021), for total consideration of $0.39 per Inner Spirit common share. The Transaction has been unanimously approved by the Boards of Directors of Sundial and Inner Spirit and is expected to close early in the third quarter of 2021.

Network Expansion

During the first quarter of 2021 and subsequent, the Company has continued to expand its network of Spiritleaf retail cannabis stores across Canada. Spiritleaf operated 68 stores to begin the first quarter of 2021 and opened 14 stores during the quarter in Alberta, Saskatchewan, Ontario, and Newfoundland and Labrador. In April and May, Spiritleaf has opened an additional 10 stores in Alberta, Saskatchewan and Ontario. With the recent additions, Spiritleaf has a total of 92 stores across the country (72 franchise owned and 20 corporate owned). Please visit www.spiritleaf.ca for information on store locations and their operating hours.

“We’ve been able to expand the Spiritleaf network organically due to the support and dedication of our franchise partners, employees, customers, strategic partners and investors. We have developed a strong business model that is attracting entrepreneurs to invest their hard-earned capital in the Spiritleaf opportunity and to represent our brand in their communities and with their neighbours. We have additional Spiritleaf store locations being readied to open at this time and expect to celebrate achieving our 100^th store this summer,” said Bondar.

Operations Update

Spiritleaf stores have been operating with enhanced customer service processes to ensure the safety of employees and customers due to the ongoing COVID-19 pandemic. Spiritleaf’s Select & Collect service enables customers to pre-shop and order online prior to pick-up in store or curbside or via delivery where permitted. The fast-growing and popular Spiritleaf Collective customer benefits program, which recently surpassed 280,000 members, streamlines and individualizes the shopping experience for guests. The Collective program was recently recognized with a Gold Award at the annual Hermes Creative Awards competition for its innovative approach to brand building in the cannabis space.

The Company also noted Spiritleaf has received a special industry designation from the Canadian Franchise Association (the “CFA“) for a second consecutive year. The Franchisees’ Choice Designation was achieved due to exceptional survey satisfaction rankings from Spiritleaf franchise partners. The designation is part of the CFA’s annual awards program to recognize franchising’s top-performing organizations.

Prior Period Restatement

The Company has restated its December 31, 2020 and 2019 audited financial statements to correct an error in the measurement of the amortized cost calculations on the debentures.  The net impact to the December 31, 2019 financial statements is a decrease in total liabilities of $0.7 million and a decrease in net loss of $0.7 million.  The net impact to the December 31, 2020 financial statements is a decrease in total liabilities of $1.2 million, a decrease in deficit of $1.2 million and a decrease in net loss of $0.5 million.  The full effect of this restatement can be found in Note 26 of the amended and restated audited consolidated financial statements for the years ended December 31, 2020 and 2019.

As a result of the above restatement, the Company has restated its March 31, 2020 comparative period to adjust the debenture accretion on the March 31, 2020 income statement.  The net impact to the March 31, 2020 consolidated income statement is a decrease to convertible debenture accretion by $0.4 million and decrease net loss of $0.4 million.  The full effect of this restatement can be found in Note 23 of the interim condensed financial statements for the three months ended March 31, 2021 and 2020.

About Inner Spirit

Inner Spirit Holdings Ltd. (CSE:ISH) (OTCQB:INSHF) is a retailer and franchisor of Spiritleaf recreational cannabis stores across Canada. The Spiritleaf network includes 92 franchised and corporate-owned locations, all operated with an entrepreneurial spirit and with the goal of creating deep and lasting ties within local communities. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis by offering a premium consumer experience and quality curated cannabis products. The Company is led by passionate advocates for cannabis who have years of retail, franchise and consumer marketing experience. Spiritleaf has been recognized with a Franchisees’ Choice Designation from the Canadian Franchise Association for its award-winning support centre for two consecutive years, a MarCom Platinum Award for marketing excellence, and a Hermes Gold Award for its creative customer benefits program. Learn more at www.innerspiritholdings.com and www.spiritleaf.ca.

Non-IFRS Financial Measures

In this news release, the Company reports “system-wide retail sales” and “Adjusted EBITDA”, 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 Inner Spirit’s 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

System-wide retail sales represents the sum of the revenue reported to the Company by franchisees of Spiritleaf   retail cannabis stores and by corporate-owned Spiritleaf retail cannabis stores. System-wide retail sales represent the aggregate revenue earned by franchised Spiritleaf retail cannabis stores and corporate-owned Spiritleaf retail cannabis stores, and do not solely represent the Company’s revenue. The Company only receives royalties and advertising fees in respect of the franchised Spiritleaf retail cannabis store revenue forming part of the system-wide retail sales. This measure is useful to management and the investment community in evaluating brand scale and market penetration and is used by management of Inner Spirit to assess the financial and operational performance of the Company and the strength of the Company’s market position relative to its competitors.

The following table reconciles the Company’s system-wide retail sales to revenue, being the most directly comparable measure calculated in accordance with IFRS.

Adjusted EBITDA

Adjusted EBITDA is defined as the net and comprehensive income (loss) for the period, as reported, adjusted for right-of-use asset depreciation, depreciation and amortization, unrealized and realized gain (loss) on marketable securities, gain (loss) on lease derecognition, gain (loss) on sublease arrangement, financial guarantee liability expense, finance income, interest expense (accretion) – leases, impairment loss on intangible assets, interest expense, revaluation loss on derivative, convertible debenture accretion, share-based compensation, taxes, and other non-cash and non-recurring items. Management believes Adjusted EBITDA is a useful financial metric to assess its operating performance prior to consideration of how operations are financed, how the results are taxed, and how the results are impacted by non-cash charges and charges that are irregular in nature or not reflective of the Company’s core operations.

The following table reconciles the Company’s net loss and comprehensive loss, being the most directly comparable measure calculated in accordance with IFRS, to Adjusted EBITDA.

Forward-Looking Information

This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information is typically, but not always, identified by the use of words such as “will”, “expected” and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding: the recently announced transaction with Sundial Growers (the “Transaction“) being completed early in the third quarter of 2021, and the benefits thereof; and the Company expecting to achieve its 100^th Spiritleaf retail cannabis store this summer.

Such forward-looking information is based on various assumptions and factors that may prove to be incorrect, including, but not limited to, factors and assumptions with respect to: the ability of the Company to successfully implement its strategic plans and initiatives and whether such strategic plans and initiatives will yield the expected benefits; the Transaction being completed on the timelines and on the terms currently anticipated; all necessary shareholder, court and regulatory approvals being obtained on the timelines and in the manner currently anticipated; the anticipated benefits of the Transaction; and the receipt by the Company and its franchise partners of necessary retail cannabis licences, approvals and authorizations from regulatory authorities, and the timing thereof.

Although the Company believes that the assumptions and factors on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct or that any of the events anticipated by such forward-looking information will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom.  Actual results could differ materially from those currently anticipated due to a number of factors and risks including, but not limited to: conditions in the cannabis industry; the risk that the Transaction is not completed as anticipated or at all, including the timing thereof, and if completed, that the benefits thereof will not be as anticipated; the risk that necessary shareholder, court or regulatory approvals are not obtained as anticipated or at all, and the timing thereof; the risk that the conditions to closing of the Transaction are not satisfied or waived; risks associated with general economic conditions; adverse industry events; future legislative, tax and regulatory developments, including developments that may impact the closing of the Transaction as anticipated or at all; the risk that the Company and its franchisees do not receive the necessary retail cannabis licences or that they are not able to open additional retail cannabis stores as anticipated or at all; the ability of management to execute its business strategy, objectives and plans; the availability of capital to fund the build-out and opening of additional corporate and franchised retail cannabis stores; and the impact of general economic conditions and the COVID-19 pandemic in Canada.

Additional information regarding risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s annual information form for the financial year ended December 31, 2019 dated February 12, 2021. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, except as required by applicable law.

SOURCE Inner Spirit Holdings

For further information: Darren Bondar, President and CEO, Email: [email protected], Phone: 1 (403) 930-9300, www.innerspiritholdings.com

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

About Ryan Allway

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