Edmonton, Alberta–(Newsfile Corp. – March 22, 2023) – Radient Technologies Inc. (TSXV: RTI) (“Radient” or the “Company”), a commercial manufacturer of diverse, novel, and high-quality cannabis extracts and packaged products, reports its financial results for the quarter ended December 31, 2022.

Recent key highlights:

• Revenue for the quarter ended December 31, 2022 was $1,029,019, which compares to $1,576,616 in the same period in the prior year.
• Gross profit for the quarter ended December 31, 2022 was $272,309, which compares to $233,836 in the same period in the prior year.
• Operating expenses for the quarter ended December 31, 2022, were $1,308,097, which compares to $2,551,342 in the same period in the prior year.
• The Company has closed the pre-rolls program which was not profitable and intends to focus on the Company’s TRX and HighGrade hydrocarbon concentrate product lines.
• Sales of HighGrade hydrocarbon concentrates continue to improve, and the Company is receiving repeat-customer orders and positive product reviews.
• The company’s cannabis licence under Excise Tax, 2021 was renewed until June 7, 2023.
• On August 26, 2022, the Company received a demand notice from its secured lender for approximately $10.5 million plus accrued costs and interest. On February 8, 2023, the secured lender obtained a redemption order from the Court to list for sale the mortgaged property under certain conditions. On March 21, 2023, the secured lender was granted a Limited Receivership Order to sell equipment not required for operations.
• The Company is pursuing avenues to raise sufficient working capital and to restructure its debt to allow the Company to operate as a going concern but cannot assure it will be able to do so.

Management Commentary

The TRX acquisition, together with the Company’s exclusive licensing and extraction agreement with HighGrade Supply (“HighGrade”), has allowed the Company to produce what we believe to be some of the highest quality cannabis 2.0 products available in Canada, including distillates and isolates of products including THCa Crystalline, Delta 8 THC, CBG, CBN and hydrocarbon products such as High Cannabinoid Full Spectrum Extracts (HCFSE), High Terpene Full Spectrum Extracts (HTFSE), Crumble, Shatter, Live Resin, Budder, Terp Diamonds and more. These premium hydrocarbon products are sold through provincially licensed retailers in eleven Canadian provinces and territories.

The Company expects sales of hydrocarbon products to continue but requires sufficient working capital to facilitate fulfilling product purchase orders and growth.

The Company is encountering difficulty in meeting financial obligations as they become due. The continuing operations of the Company are dependent upon funding provided by investors and realizing profits from products being commercialized. The Company’s efforts are focused on financing its future requirements through a combination of debt and/or equity issuances. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms. This uncertainty casts doubt about the ability of the Company to continue as a going concern. The company is currently examining all restructuring options.

The interim condensed consolidated financial statements do not include any adjustments to the carrying value or presentation of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Loan Facility Demand

As previously announced, Moskowitz Capital Mortgage Fund II Inc. (“Moskowitz”) issued a demand notice on August 26, 2022, to the Company for payment of approximately $10.5 million, plus accrued costs and additional interest to the date of payment pursuant to the terms of a secured loan facility (the “Facility”) guaranteed by the Company. The Facility is secured by a first priority mortgage on the land and buildings located at 4035, 4029, and 4025 101 St. N.W., Edmonton, Alberta, as well as all of the Company’s present and after acquired personal property. On February 8, 2023, Moskowitz obtained a redemption order from the Court to list for sale the mortgaged property under certain conditions. On March 21, 2023, Moskowitz was granted a Limited Receivership Order to sell equipment not required for operations. For more information about the Facility, please see Radient’s press release dated April 4, 2022, which is available under the Company’s SEDAR profile at www.sedar.com.

Complete details of the Company’s financial and operating results for the quarter ended December 31, 2022 are available under the Company’s profile at www.sedar.com.

About Radient

Radient Technologies is a commercial manufacturer of diverse, novel and high-quality cannabis extracts and packaged products. Radient develops specialty products and ingredients that contain a broad range of cannabinoid and terpene profiles while meeting the highest standards of quality and safety. Radient is focused on innovation with expertise in formulations and technologies offering unique solutions in the cannabis space. RadientInc.com

Contact Information:

Steven Splinter, Interim CEO & Director
ssplinter@radientinc.com
Ph: 780 465 1318

Forward-Looking Information:

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations and cannabis product offerings and the Company’s ability to raise sufficient working capital to allow the Company to satisfy its outstanding purchase orders and operate as a going concern. Generally, forward-looking information 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 state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; risks associated with operation in the cannabis sector; and other risks inherent in the cannabis industry. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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.

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.

POTOMAC, Md., Feb. 14, 2023 (GLOBE NEWSWIRE) — via InvestorWire — India Globalization Capital, Inc. (dba IGC, Inc.) (NYSE American: IGC) (“IGC” or the “Company”) today reported its third fiscal quarter 2023 financial results.

Third Fiscal Quarter 2023 Highlights:

• The Company expanded the number of sites participating in its Phase 2 clinical trial on IGC-AD1 for agitation in dementia from Alzheimer’s disease to a total of four – three in the U. S. and one in Canada. The Company is encouraged by the patient enrollment and interest from many of the leading research centers and has decided to increase the number of trial sites to between 10 and 12 from the originally planned four to five. This will help accelerate the timeline for completion and diversify the patient demographics.
• The trial will enroll 146 patients, with one half receiving a placebo and the other half receiving IGC-AD1. The goal of the trial is to evaluate and establish, over six weeks, the efficacy of IGC-AD1 in treating agitation in dementia from Alzheimer’s disease. Agitation affects about 76% of individuals with Alzheimer’s (Mussele et al., 2015), which affects about 11 million individuals in North America and Europe alone. In addition, agitation is a leading cause of hospitalization and a major factor in accelerating the cognitive decline of patients with Alzheimer’s (Kongpakwattana et al., 2018). Currently, there is no FDA-approved medication for treating agitation in Alzheimer’s. The Company is positioning itself to offer the first natural tetrahydrocannabinol (“THC”) based medication for treating agitation in dementia from Alzheimer’s disease. The trial is registered on clinicaltrials.gov with NCT05543681.
• Net revenue increased 133% to $332,000 in the three months ended Dec. 31, 2022, compared to $142,000 in the three months ended Dec. 31, 2021, and net revenue increased 172% to $745,000 for the nine months ended Dec. 31, 2022, compared to $275,000 for the nine months ended Dec. 31, 2021, driven mainly by the Company’s life science segment, which includes, among others, natural products targeting women with premenstrual syndrome (“PMS”), period pain and sleep disorder.

Ram Mukunda, CEO of IGC, commented, “We are delighted with the progress made during this quarter, highlighted by the commencement of the Phase 2 clinical trial for our drug candidate IGC-AD1 for the safety and efficacy of the drug on agitation in dementia due to Alzheimer’s disease. This represents a milestone in our progress towards gaining FDA approval for IGC-AD1, which we believe has the potential to revolutionize the treatment of Alzheimer’s disease as the first and only low-dose, natural, THC-based candidate currently undergoing FDA trials. Moreover, our sales of natural products, which include gummies and pain relief creams, are seeing increased traction in the market. We’re encouraged by our third quarter results and look forward to driving continued expansion through the balance of fiscal 2023.”

Revenue was approximately $332,000 for the three months ended Dec. 31, 2022, compared to $142,000 for the three months ended Dec. 31, 2021. The increase in revenue is primarily related to increased sales of the Company’s life science-based products and services.

Selling, general and administrative (“SG&A”) expenses were approximately $1.5 million and $2.07 million for the three months ended Dec. 31, 2022, and Dec. 31, 2021, respectively. The decrease of $496,000 is attributed to a reduction in compensation, legal and marketing expenses.

Research and development (“R&D”) expenses were approximately $806,000 for the three months ended Dec. 31, 2022, compared to approximately $377,000 for the three months ended Dec. 31, 2021. The increase of approximately $429,000 was primarily attributable to the progression of Phase 2 trials on IGC-AD1 and preclinical studies on TGR-63. The Company anticipates increased R&D expenses as the development of TGR-63 and the Phase 2 trial on Alzheimer’s pick up more momentum.

Net loss for the three months ended Dec. 31, 2022, was approximately $2.2 million or ($0.04) per share, compared to approximately $2.4 million or ($0.05) per share for the three months ended Dec. 31, 2021.

About IGC:

IGC develops advanced cannabinoid-based formulations for treating diseases and conditions including, but not limited to, Alzheimer’s disease, period cramps (“dysmenorrhea”), premenstrual syndrome (“PMS”) and chronic pain. The Company has two investigational drug assets targeting Alzheimer’s disease, IGC-AD1 and TGR-63, which have demonstrated in Alzheimer’s cell lines the potential to be effective in suppressing or ameliorating key hallmarks of Alzheimer’s disease such as plaques or tangles. IGC-AD1 is a low-dose tetrahydrocannabinol (“THC”) based formulation that is currently in a 146-person Phase 2B safety and efficacy clinical trial for agitation in dementia due to Alzheimer’s (clinicaltrials.gov, NCT05543681). The Company also markets two wellness brands, Holief and Sunday Seltzer. Holief targets women experiencing premenstrual syndrome and menstrual cramps, and Sunday Seltzer is a lifestyle, hemp-infused energy beverage brand. The Company is headquartered in Maryland, USA, and has historically operated an infrastructure segment based in India.

Forward-Looking Statements:

This press release contains forward-looking statements. These forward-looking statements are based largely on IGC’s expectations and are subject to several risks and uncertainties, certain of which are beyond IGC’s control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, the Company’s failure or inability to commercialize one or more of the Company’s products or technologies, including the products or formulations described in this release, or failure to obtain regulatory approval for the products or formulations, where required; general economic conditions that are less favorable than expected, including as a result of the ongoing COVID-19 pandemic; the FDA’s general position regarding cannabis- and hemp-based products; and other factors, many of which are discussed in IGC’s U.S. Securities and Exchange Commission (“SEC”) filings. IGC incorporates by reference the human trial disclosures and risk factors identified in its Annual Report on Form 10-K filed with the SEC on June 23, 2022, as if fully incorporated and restated herein. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this release will occur.

Investor Relations Contact:

Walter Frank
IMS Investor Relations
(203) 972-9200
igc@imsinvestorrelations.com

< Financial Tables to Follow>

These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended on Dec. 31, 2022, and filed with the SEC on Feb. 14, 2023.

These financial statements should be read in connection with the accompanying notes on Form 10-Q for the quarter ended on Dec. 31, 2022, and filed with the SEC on Feb. 14, 2023.

Wire Service Contact:
InvestorWire (IW)
Los Angeles, California
www.InvestorWire.com
212.418.1217 Office
Editor@InvestorWire.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.

Herzliya, Israel and Calgary, Alberta–(Newsfile Corp. – November 29, 2022) – Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (the “Company” or “Innocan”) a pharmaceutical technology company focusing on developing innovative drug delivery platform technologies and owner of a proprietary IP portfolio, is pleased to report its financial results for the three and nine months ended September 30, 2022.

“We delivered encouraging results in the third quarter, with revenue growth and are confident in our long-term outlook” says Iris Bincovich, CEO of Innocan, “we continue with our strategy to invest in cutting-edge science and innovation while deliver revenues from our consumer wellness activities.”

Additional information concerning Innocan’s consolidated financial statements and related management’s discussion and analysis for the three and nine months ended September 30, 2022 can be found at www.sedar.com.

Financial highlights for the third quarter 2022

• Revenue – A consistent increase in revenue has been remarked over the last 12 months was USD 1.424M for the quarter ended September 30, 2022, representing a 700% increase from the $180 thousand in third quarter in the prior year. The consistent increase in revenues indicates continued growth and expansion of the Company’s activities.
• Gross Profit – was USD 511 thousand for the quarter ended September 30, 2022, representing a 360% increase from the USD 180 thousand in third quarter in the prior year. The increase in operating profit is another indicator of the growth of the Company’s activity.
• Net loss – was USD 2.7M for the quarter ended September 30, 2022, representing a 71% decrease from the USD 9.4M thousand in third quarter in the prior year. This is mainly because of changes in fair value of warrants outstanding during the period of Q3-22 in compared to the corresponding quarter.
• Working capital – was USD 7.7M for the quarter ended September 30, 2022, representing a 17% increase from the USD 6.6M in third quarter in the prior year.
• Cash balance – was USD 6.4M for the quarter ended September 30, 2022, representing a 10% increase from the USD 5.8M in third quarter in the prior year.

About Innocan

Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies comprises with cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD- loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for two indications: Epilepsy and Pain Management. (ii) CLX CBD-loaded exosomes platform that may hold the potential to provide a highly synergistic effect of regenerating and anti- inflammatory properties targeting the Central Nervous System (CNS). In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment Innocan has established a Joint Venture by the name of BI Sky Global Ltd. that focuses developing on advanced targeted online sales. https://innocanpharma.com/

For further information, please contact:

For Innocan Pharma Corporation:
Iris Bincovich, CEO

15162104025+

+972-54-3012842

+442037699377
[email protected]

Dr. Eva Reuter

Investment Relation- Germany

+46-69-1532-5857

[email protected]

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Caution regarding forward-looking information

Certain information set forth in this news release, including, without limitation, information regarding research and development, collaborations, the filing of potential applications with the FDA and other regulatory authorities, the potential achievement of future regulatory milestones, the potential for treatment of conditions and other therapeutic effects resulting from research activities and/or the Company’s products, requisite regulatory approvals and the timing for market entry, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of requisite production and distribution arrangements.

Forward-looking information is subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: general global and local (national) economic, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import / export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner) and availability in each market of product inputs and finished products. The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing of launch of product distribution. A comprehensive discussion of other risks that impact Innocan can also be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedar.com.

Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward looking information as a result of any new information, future events or otherwise, except as may be required by applicable 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.

Indiva Launches Multiple New Products and Remains the National Market Share Leader in the Edibles Category

LONDON, Ontario, November 22, 2022–(BUSINESS WIRE)–Indiva Limited (the “Company” or “Indiva“) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the third fiscal quarter ended September 30, 2022. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS“). For a more comprehensive overview of the corporate and financial highlights presented in this news release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months Ended September 30, 2022, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2022 and 2021, filed on SEDAR and available on the Company’s website, www.indiva.com.

“We are pleased to report year-over-year growth and record net revenue year-to-date, driven by the successful launch of several new products and brands into the Canadian market in Q3 2022, including Indiva Life Double Stuffed Sandwich Cookies, Indiva Life Lozenges, Dime vapes and Pearls by Grön gummies, which have quickly become one of the top edibles brands in market. Indiva is transitioning from relying on licensed brands, which Indiva will continue to support with its best efforts, towards focusing on innovation at its core, in order to drive future growth,” said Niel Marotta, President and Chief Executive Officer of Indiva. “In the third quarter, Indiva launched a record number of SKUs, primarily into the province of Ontario and B.C. These new products are now beginning to roll out nationally across our distribution platform, which spans all thirteen provinces and territories in Canada. Feedback from key accounts and budtenders has been very positive, which has translated into robust replenishment orders for our new products. We look forward to continuing to delight of-age Canadian cannabis enthusiasts with the quality and innovation that Indiva products are known for.”

Quarterly Performance

• Gross revenue in Q3 2022 was $8.8 million, representing a 1.1% sequential decrease from Q2 2022, and a 5.9% increase year-over-year from Q3 2021. Year-to-date, gross revenue increased 9.3% year over year to a record $27.4 million.
• Net revenue in Q3 2022 was $8.1 million, representing a 0.4% sequential decrease from Q2 2022, and a 5.5% increase year-over-year from Q3 2021, driven by new product introductions and strength in core products. Q3 2022 net revenue was negatively impacted by the closure of the B.C. Liquor Distribution Branch distribution center due to strike action, as well as the partial shutdown of the Ontario Cannabis Retail Corporation, operating as the Ontario Cannabis Store, (the “OCS“) distribution center due to a cyber security incident, resulting in delays in deliveries and new product launches by up to two weeks. Year-to-date, net revenue increased 9.9% year over year to a record $25.1 million.
• Net revenue from edible products in the quarter was $7.3 million, up slightly from $7.2 million in Q2 2022 and $6.9 million in the prior year period. Edible product sales represent 90.7% of net revenue in Q3 2022. Year-to-date net revenue from edible products increased 10.7% year-over-year to a record $23.1 million or 92.0% of net revenue.
• Gross profit before fair value adjustments, impairments and one-time items declined year-over-year and sequentially, to $2.3 million, or 28.9% of net revenue, versus 33.1% in Q2 2022 and 34.5% in Q3 2021. The decline in gross margin was due to the delay in receiving automation equipment related to the production and processing of certain new products, offset by lower inventory write-downs. Year-to-date, gross profit before fair value adjustments, impairments and one-time items increased to a record $7.7 million, or 30.5% of net revenue, versus $6.8 million or 29.8% of net revenue in the corresponding period last year.
• In Q3 2022, Indiva sold products containing 56.5 million milligrams of cannabinoids, the active ingredient in edible products, which represents a 32.4% increase when compared to the 42.7 million milligrams in products sold in Q2 2022, and a 33.7% increase compared to 42.3 million milligrams sold in Q3 2021. The increase was primarily driven by a shift in product mix towards edibles with higher total cannabinoid content and the addition of minor cannabinoids (ie. CBN and CBG) to multiple SKUs.
• Impairment charges in the quarter totaled $0.4 million. This impairment includes a write off of aged finished goods and bulk cannabis flower, and to a lesser extent, certain packaging for obsolete products, offset by a recovery on oil-based products. The Company will continue to work to monetize any impaired inventory which remains saleable. The Company expects lower inventory impairments going forward as most of the bulk flower inventory originating from terminated contract manufacturing has either been sold or written down to its net realizable value.
• Operating expenses in the quarter decreased 3.0% sequentially, representing 41.8% of net revenue, versus 42.9% in Q2 2022 and 39.2% in Q3 2021. Operating expenses declined due to lower general and administrative costs, which were down 22.5% year-over-year and down 6.1% sequentially, offset by higher marketing costs and sales commissions versus the prior year. Year-to-date, operating expenses increased by 24.5% to $10.4 million due to higher marketing costs and sales commissions, higher research and development costs as a result of new product innovation activities, offset partly by lower general and administrative expenses.
• Adjusted EBITDA declined sequentially in Q3 2022 to a loss of $0.5 million, versus a loss of $0.15 million in Q2 2022, and declined versus a profit of $0.13 million in Q3 2021, due to higher cost of goods related to new product launches, increased sales and marketing costs year-to-date and research and development expenses, offset partly by lower general and administrative costs. Year-to-date, adjusted EBITDA was a loss of $1.0 million versus a profit of $0.1 million in the corresponding period last year. See “Non-IFRS Measures” below.
• Comprehensive net loss of $2.6 million included one-time expenses and non-cash charges for impairment of inventory totaling $0.4 million. Excluding these charges, comprehensive loss increased to $2.2 million versus an adjusted loss of $2.0 million in Q2 2022 and $1.0 million in Q3 2021.
• Cash balance improved to $3.6 million at quarter-end.

Operational Highlights for the Third Quarter 2022

• Indiva completed initial deliveries of Pearls by Grön gummies to Ontario, B.C., Manitoba and Saskatchewan. The first four flavours released include Blue Razzleberry 3:1 CBG:THC, Sour Apple THC, Blackberry Lemonade 1:1:1 CBN:CBD:THC and Pomegranate 4:1 CBD:THC. Pearls by Grön have quickly become one of the top-selling edibles in Ontario.
• Towards the very end of the third quarter, Indiva introduced several additional new products to provincial wholesalers including:
  • Pearls by Grön: Strawberry Melon 4:1 CBN:THC, Sparkling Peach 1:1: CBD:THC and Cherry Limeade THC, bringing the total number of Pearls gummie SKUs in market to seven. These additional flavours were delivered to the OCS in late September and became available to retailers in October.
  • Indiva Life Double Stuffed Sandwich Cookies: Available in Vanilla and Fudge flavours, containing 10mg of THC per cookie, these products became available in Ontario, Alberta, B.C. and New Brunswick in Q3, adding substantially to Indiva’s market share in the baked goods sub-category. The Company expects to expand distribution of this immediately popular product across the country in the fourth quarter.
  • Indiva Life Capsules: Three new 30-count capsule formats became available in the third quarter, including Zen CBD:CBN 1:1, Sunrise CBG:THC 1:1 and Sunset CBN:THC 1:1. Indiva Life Zen capsules became available in Alberta, while Zen, Sunrise and Sunset capsules became available in B.C., and Sunset and Zen capsules became available in Manitoba, Saskatchewan and the Yukon.
  • Indiva Life Lozenges: This innovative extract product comes in Lemon and Wild Cherry flavours, available in 10-pack and 25-pack counts. Lemon Lozenges became available in Ontario in a 10-pack format, and in B.C. in a 25-pack format during the quarter. 25-pack Wild Cherry Lozenges were delivered to Ontario and B.C. subsequent to quarter end.
  • Indiva Life Chocolates: Irish White Chocolate THC delivered in Ontario, with Evening Milk Chocolate CBN:CBD 1:1 and Afternoon Trail Mix Milk Chocolate CBG:THC 1:1 becoming available subsequent to quarter end. Evening Milk and Afternoon Trail Mix delivered to B.C. in October.
  • Bhang Chocolate: Toffee and Salt Milk Chocolate and White Chocolate Candy Cane became available in Ontario.
  • Dime Industries Vapes: 510-thread Dime OG carts delivered in Ontario. Indiva also introduced a proprietary Dime battery and 510-thread Bubblegum Kush carts, both of which became available in October.

Events Subsequent to Quarter End

• Indiva was awarded thirteen additional SKU listings by the OCS, which will deliver to the OCS late December/early January. New listings include:
  • Pearls by Grön: Marionberry Lemonade CBG 25-pack gummies.
  • Wana: Midnight Berry Indica CBN/CBD/THC 5:10:2 available in 5-packs.
  • Indiva Life Double Stuffed Sandwich Cookies: Golden Vanilla and Be My Valentine Strawberry flavours, each cookie containing 10mg of THC.
  • Indiva Life Capsules and Lozenges: Sunrise CBG/THC 1:1 capsules, as well as Lemon Lozenges available in 25-count pack and Wild Cherry Lozenges in 50-count packs.
  • Indiva Life Chocolates: Morning Espresso Milk Chocolate 1:1 CBG:THC and Raspberries and Cream White Chocolate 1:1 CBD:THC.
  • Dime Industries Vapes: 510-thread Blueberry Lemon Haze Sativa and Wedding Cake Hybrid Rechargeable All-in-One.
• Building on Indiva’s strength as a best-in-class manufacturer, the Company commissioned several new pieces of automated equipment at its facility in London, Ontario, for use in the processing and packaging of edible products. The Company expects that by year-end, all of the new equipment, including pieces specifically designed for use in the processing of newly launched products, will be fully operational, adding finished goods capacity, while lowering operating costs. Despite the reduction in required direct labour for certain processing and packaging activities, the addition of several new brands and products has created a growth environment at Indiva’s production facility, requiring additional direct labour requirements, thus preventing any job cuts.

Market Share

• Data from Hifyre Inc. for the third quarter of 2022 shows strong sell-through of Indiva edible products. With 29.7% share of sales, Indiva continues to lead in the #1 market share position in the edibles category on an aggregate basis. Please note that Hifyre data for the three-month period ended September 30, 2022 does not include any contribution from Pearls by Grön gummies.
  • Ontario: #1 with 28.2% market share.
  • Alberta: #1 with 28.1% market share.
  • British Columbia: #1 with 37.4% market share.
  • Saskatchewan: #2 with 17.8% market share.
  • Manitoba: #2 with 32.1% market share.
  • Wana Sour Gummies led the edibles category with 24.7% category share and 31.9% sub-category share, and Bhang^® continued to lead the chocolate category with 37.2% sub-category share.
  • Product ranking in Q3 2022 showed four of the Top 10 edible SKUs are from Indiva.
  • Based on data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category declined by 1.0% in Q3 2022 to $57.0 million in retail sales from $57.6 million in Q2 2022.

Outlook

• Based on the strength of purchase orders received to date in the fourth quarter, the Company expects Q4 2022 net revenue to be higher sequentially and year-over-year driven primarily by new product introductions, including Pearls gummies, Dime Industries vape products, as well as new Indiva Life branded products such as lozenges and sandwich cookies.
• Margins are expected to improve going forward due to fixed cost leverage and the commissioning and implementation of automation in the production, processing and packaging of edible products.

CONFERENCE CALL – Tuesday, November 22, 2022 at 8:30 a.m. (EST):

The Company will host a conference call to discuss its results on Tuesday, November 22, 2022 at 8:30 a.m. (EST). Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID is 70018162.

A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 018162#. The recording will remain available until Thursday, December 22, 2022.

ABOUT INDIVA

Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang^® Chocolate, Wana Sour Gummies, Jewels Chewable Tablets, Grön edibles, Dime Industries vape products, as well as capsules, edibles, extracts, pre-rolls and premium flower under the INDIVA, Indiva Life and Artisan Batch brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

DISCLAIMER AND READER ADVISORY

General

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news release constitute forward-looking information. 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 parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this news release contains forward-looking information relating to, among other things, (i) the Company’s outlook for and expected operating margins and future financial results, (ii) the projected growth of its business and operations (including existing and new segments thereof), and the future business activities of, and developments related to, the Company within such segments after the date of this news release, including the anticipated introduction of new product offerings (iii) the Company’s ability to capture and/or maintain its market share in any jurisdiction, and (iv) the Company’s ability to deliver on its commitments for existing or new listings of products. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company, and include, without limitation, assumptions about the Company’s future business objectives, goals, and capabilities, the cannabis market, the regulatory framework applicable to the Company and its operations, and the Company’s financial resources. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks inherent in the cannabis industry, (iv) risks associated with economic conditions, (v) dependence on management, (vi) public opinion and perception of the cannabis industry, (vii) risks related to contracts with third-party service providers, (viii) risks related to the enforceability of contracts, (ix) reliance on the expertise and judgment of senior management of the Company, and ability to retain such senior management, (x) risks related to proprietary intellectual property and potential infringement by third-parties, (xi) risks relating to the management of growth and/or increasing competition in the industry, (xii) risks associated to cannabis products manufactured for human consumption, including potential product recalls, (xiii) risks related to the economy generally, and (xiv) risk of litigation.

The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake to, update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the Company’s prospective results of operations, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. FOFI contained in this news release was approved by management as of the date of this news release and was provided for the purpose of providing further information about the Company’s future business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

The non-IFRS measure used in this news release includes “Adjusted EBITDA”. The Company calculates Adjusted EBITDA as a sum of net revenue, other income, cost of inventory sold, production salaries and wages, production supplies and expense, general and administrative expense, and sales and marketing expense, as determined by management. Adjusted license fee eliminates 50% of the fee which is equivalent to the Company’s share of the joint venture company to which the license fee is paid. Adjusted EBITDA is provided to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. Management believes that Adjusted EBITDA provides useful information to investors as it is an important indicator of an issuer’s ability to generate liquidity through cash flow from operating activities and equity accounted investees. Adjusted EBITDA is also used by investors and analysts for assessing financial performance and for the purpose of valuing an issuer, including calculating financial and leverage ratios. The most directly comparable financial measure that is disclosed in the financial statements of the Company to which the Non-IFRS measure relates is income (loss) from operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221122005315/en/

Contacts

INVESTOR CONTACT
Anthony Simone
Phone: 416-881-5154
Email: [email protected]

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

About Ryan Allway

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

Thu, November 17, 2022 – Evogene (EVGN) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this agricultural company would post a loss of $0.18 per share when it actually produced a loss of $0.21, delivering a surprise of -16.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Evogene , which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $0.47 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 79.23%. This compares to year-ago revenues of $0.15 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Evogene shares have lost about 55.3% since the beginning of the year versus the S&P 500’s decline of -16.9%.

What’s Next for Evogene?

While Evogene has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Evogene: mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.20 on $0.88 million in revenues for the coming quarter and -$0.76 on $1.69 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Biomedical and Genetics is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Avid Bioservices (CDMO), has yet to report results for the quarter ended October 2022.

This contract manufacturer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -110%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Avid Bioservices’ revenues are expected to be $31 million, up 18.7% from the year-ago quarter.

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

About Ryan Allway

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

Conference call and webcast: today, November 17, 2022, 9:00 am ET

REHOVOT, Israel, Nov. 17, 2022 /PRNewswire/ — Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN), a leading computational biology company targeting to revolutionize life-science based product discovery and development utilizing cutting edge computational biology technologies, across multiple market segments, announced today its financial results for the third quarter, ended September 30, 2022.

Mr. Ofer Haviv, Evogene’s President and Chief Executive Officer, stated, “Reviewing our developments in 2022, the activities of Evogene and our subsidiaries are advancing well, and we have met important milestones. Each one, whose technology leverages Evogene’s AI tech engines, is generating significant value for the Evogene Group, and I am very pleased with our progress.

“An example for such milestone progress can be seen in our clinical trial for subsidiary Biomica’s microbiome-based immuno-oncology drug candidate, which was launched earlier this year and developed using Evogene’s MicroBoost AI tech engine. In recent weeks, we progressed to our third patient out of twelve, and we aim to have our first data readout in spring 2023, as these first few patients conclude their treatment programs. Another important milestone achieved recently by our subsidiary Lavie Bio, was the submission of the registration package to the U.S. Environmental Protection Agency in October, for its novel bio-fungicide product, developed using Evogene’s MicroBoost AI tech engine. We expect this process to take around 18 months. Our goal is a soft launch for the 2024 growing season, pending the regulatory approval.”

Continued Mr. Haviv, “In these challenging times in the capital markets, it’s important to emphasize that we maintain a strong consolidated cash position of approximately $38 million, which based on our business plan, we expect will be enough to take us towards late 2024. Furthermore, with the strategic steps we continue to pursue, the fundraising at our subsidiary level, as well as the collaborations with non-dilutive payments, we believe we will extend this runway out further.

“The strategic collaboration and $10 million investment in the quarter by ICL, a leading specialty minerals company, into our subsidiary, Lavie Bio, is a great example of the successful execution of this strategy. It brought a new and additional source of capital to that subsidiary, it brought a value-adding partner to the subsidiary, which has a strong share in the ultimate success and upside in that subsidiary, and it also demonstrated the inherent financial value of the subsidiary and ultimately Evogene’s share in it. We continue to work hard in identifying additional value-adding partners and investors and bringing them into our subsidiaries.”

Added Mr. Haviv, “In parallel, we continue to pursue collaborations which can add new revenue streams for both Evogene and its subsidiaries, built upon the successful products all developed using Evogene’s underlying AI tech-engines. A recent example for this strategy was the announcement made by our subsidiary Casterra, focusing on castor seed technology development. They signed a royalty agreement with Zambian company, Titan, for sales of castor oil  produced by Titan, which are based on Casterra’s castor seeds and developed using Evogene’s GeneRator AI tech engine.

“Another collaboration we are proud of was announced by our subsidiary Canonic, developing cannabis products, leveraging Evogene’s GeneRator AI tech engine. They announced a new licensing and royalty agreement signed with GroVida, a Portuguese cannabis cultivation company, in European markets for two of our new cannabis lines. Europe is a first and key target market for Canonic beyond our local market in Israel, with total medical cannabis market sales estimated at approximately €400 million.”

Concluded Mr, Haviv, “These represent some of the initial fruits of our focus on this strategy and I look forward to further such deals in the coming months.”

Consolidated Financial Results Summary

Cash position: Evogene continues to maintain a solid financial position for its activities with approximately $38 million in consolidated cash, cash equivalents and marketable securities as of September 30, 2022.  Approximately $11.9 million of Evogene’s consolidated cash is appropriated to its subsidiary, Lavie Bio.

During the third quarter, the consolidated cash usage was approximately $7.3 million, or approximately $4.7 million, excluding Lavie Bio.

Revenues: Revenues for the third quarter of 2022 were $466 thousand, in comparison to $151 thousand in the same period the previous year and were primarily due to revenues recognized per the collaboration agreement of Evogene’s subsidiary AgPlenus with Corteva.

R&D expenses for the third quarter of 2022, which are reported net of non-refundable grants received, were $5.0 million, in comparison to $5.8 million in the same period the previous year. The main contributors to R&D expenses were Lavie Bio’s activities supporting the production and commercialization of its inoculant product and Evogene’s ongoing development of its technology engines.

Business Development expenses were approximately $0.9 million for the third quarter of 2022, in comparison to $0.8 million in the same period the previous year.

General and Administrative expenses were $1.6 million in the third quarter of 2022, in comparison to $2.0 million in the same period in the previous year.

Operating loss: Operating loss for the third quarter of 2022 was $7.1 million in comparison to $8.6 million in the same period in the previous year.

Financing expenses for the third quarter of 2022 were $61 thousand, in comparison to financing income of $221 thousand in the same period in the previous year. The difference between periods was mainly due to U.S. Dollar and New Israeli Shekel exchange rate differences between periods and a change in the value of marketable securities.

Net loss: Net loss for the third quarter of 2022 was $7.2 million, in comparison to a net loss of $8.3 million in the same period in the previous year.

Conference Call & Webcast Details:

Date: November 17, 2022

Time: 9:00 am ET; 16:00 Israel time

Dial-in numbers:1-888-281-1167 toll free from the United States, or +972-3-918-0609 internationally

Webcast & Presentation link available at:

https://www.evogene.com/investor-relations/presentations-and-webcasts/

The Company’s investor presentation can be viewed at the above link, which is in the investor relations section of the company website.

Replay Information: A replay of the conference call will be available approximately two hours following the completion of the call.

To access the replay, please dial 1-888-326-9310 toll free from the United States, or +972-3-925-5901 internationally. The replay will be accessible following the call for three days. An archive of the webcast will be available on the Company’s website.

About Evogene Ltd.:

Evogene (Nasdaq: EVGN, TASE: EVGN) is a computational biology company aiming to revolutionize the development of life-science based products by utilizing cutting edge technologies to increase probability of success while reducing development time and cost. Evogene established three unique technological engines – MicroBoost AI, ChemPass AI and GeneRator AI – leveraging Big Data and Artificial Intelligence and incorporating deep multidisciplinary understanding in life sciences. Each technological engine is focused on the discovery and development of products based on one of the following core components: microbes (MicroBoost AI), small molecules (ChemPass AI), and genetic elements (GeneRator AI). Evogene uses its technological engines to develop products through subsidiaries and with strategic partners. Currently, Evogene’s main subsidiaries utilize the technological engines to develop human microbiome-based therapeutics by Biomica Ltd., medical cannabis products by Canonic Ltd., ag-chemicals by Ag Plenus Ltd. and ag-biologicals by Lavie Bio Ltd.  For more information, please visit: www.evogene.com.

Forward Looking Statements

This press release contains “forward-looking statements” relating to future events. These statements may be identified by words such as “may”, “could”, “expects”, “hopes” “intends”, “anticipates”, “plans”, “believes”, “scheduled”, “estimates” or words of similar meaning. For example, Evogene is using forward-looking statement in this press release when it discusses its expectations with respect to value creation and potential funding options, including through its subsidiaries, untapped potential and value, including the potential to establish new activities that can benefit from Evogene’s technology, its and its subsidiaries’ expected timing for trials and studies, expected product advancements, pipelines, commercializations, collaborations and value-adding partners, sales, launches, milestones, target markets and their sizes, the sufficiency of its cash runway to meet its business plan and strategic goals through late 2024 or further, and the potential advantages of its technology. Such statements are based on current expectations, estimates, projections and assumptions, describe opinions about future events, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performance or achievements of Evogene and its subsidiaries may differ materially from what is expressed or implied by such forward-looking statements due to a variety of factors, many of which are beyond the control of Evogene and its subsidiaries, including, without limitation, those risk factors contained in Evogene’s reports filed with the applicable securities authority. In addition, Evogene and its subsidiaries rely, and expect to continue to rely, on third parties to conduct certain activities, such as their field-trials and pre-clinical studies, and if these third parties do not successfully carry out their contractual duties, comply with regulatory requirements or meet expected deadlines, Evogene and its subsidiaries may experience significant delays in the conduct of their activities. Evogene and its subsidiaries disclaim any obligation or commitment to update these forward-looking statements to reflect future events or developments or changes in expectations, estimates, projections and assumptions.

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.

Enrollment continues in RECONNECT, a confirmatory pivotal Phase 3 trial of Zygel in patients with Fragile X syndrome (FXS); topline results expected second-half 2023

$55.9 million in cash and cash equivalents at September 30, 2022; Cash runway into first quarter 2024

DEVON, Pa., Nov. 14, 2022 (GLOBE NEWSWIRE) — Zynerba Pharmaceuticals, Inc. (Nasdaq: ZYNE), the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for orphan neuropsychiatric disorders, today reported financial results for the third quarter ended September 30, 2022, and provided an overview of recent operational highlights and a pipeline update.

“Enrollment in our confirmatory pivotal Phase 3 RECONNECT trial continues, and we expect topline results in the second half of 2023,” said Armando Anido, Chairman and Chief Executive Officer of Zynerba. “With a cash runway into the first quarter of 2024, we remain well-positioned on achieving our goal of bringing Zygel to market as the first FDA approved treatment option for the significant unmet medical need that affects FXS patients and their families.”

Operational Highlights and Pipeline Update

Zygel in Fragile X Syndrome (FXS)

• The Company continues to expect topline results from RECONNECT, a confirmatory pivotal Phase 3 trial of Zygel in patients with FXS, in the second half of 2023. The Company believes that the results from RECONNECT, if positive, will be sufficient to support the submission of a New Drug Application (NDA) for Zygel in patients with FXS.
• In October 2022 the Company announced that the U.S. Patent and Trademark Office (USPTO) issued a patent titled “Treatment of Fragile X Syndrome With Cannabidiol,” which includes claims directed to methods of treating Fragile X syndrome with cannabidiol. This new patent, which expires in 2038, is part of an expanding international intellectual property portfolio covering the Company’s transdermal cannabidiol product candidate, Zygel. (Press Release)

Zygel in 22q11.2 Deletion Syndrome (22q)

• Based on the positive Phase 2 INSPIRE trial data announced in June 2022 (Press Release), the Company requested and has been granted an initial meeting with the U.S. Food and Drug Administration (FDA) before the end of 2022 to obtain feedback on the Phase 2 data and regulatory pathway for Zygel in patients with 22q. The Company currently plans to initiate a Phase 3 program in children and adolescents with 22q following topline results from RECONNECT.
• In November 2022, the Company announced that the USPTO issued a patent titled “Treatment of 22q11.2 Deletion Syndrome With Cannabidiol,” which includes claims directed to methods of treating one or more behavioral symptoms of 22q with cannabidiol, and expires in 2040. (Press Release)
• The Company presented data at The Society for the Study of Behavioural Phenotypes (SSBP) 24^th International Research Symposium in September 2022 and the 2022 National Organization for Rare Disorders (NORD) Rare Diseases and Orphan Products Breakthrough Summit in October 2022 from the first 14-week treatment period of the Phase 2 INSPIRE trial. These data suggest a positive risk-benefit profile for Zygel in improving anxiety-related and behavioral symptoms in children and adolescents with 22q. Statistically significant improvements from baseline were seen in the Pediatric Anxiety Rating Scale (PARS-R), the total score and all five subscales of the Anxiety, Depression and Mood Scale (ADAMS) and all five subscales of the Aberrant Behavior Checklist – Community (ABC-C). In addition, the majority of patients showed clinically meaningful improvements as demonstrated by the Clinical Global Impression – Improvement (CGI-I). Zygel was shown to be well tolerated, and the safety profile was consistent with previously released data from other Zygel clinical trials. (Posters).

Third Quarter 2022 Financial Results

Research and development expenses were $5.0 million for the third quarter of 2022, including stock-based compensation of $0.5 million. General and administrative expenses were $3.5 million in the third quarter of 2022, including stock-based compensation expense of $0.6 million. Net loss for the third quarter of 2022 was $8.7 million, with basic and diluted loss per share of $(0.20).

Financial Outlook

As of September 30, 2022, cash and cash equivalents were $55.9 million, compared to $67.8 million as of December 31, 2021.

On May 11, 2021, the Company entered into a Controlled Equity Offering^SM Sales Agreement (2021 Sales Agreement), with Cantor Fitzgerald & Co., Canaccord Genuity, LLC, H.C. Wainwright & Co. LLC and Ladenburg Thalmann & Co. Inc., as sales agents, pursuant to which the Company may sell, from time to time, up to $75.0 million of its common stock. In the third quarter of 2022, the Company sold and issued 2,579,346 shares of its common stock under the 2021 Sales Agreement in the open market resulting in gross proceeds of $3.2 million and net proceeds of $3.0 million, after deducting commissions and offering expenses.

On July 21, 2022, the Company entered into a Purchase Agreement and registration rights agreement for up to $20 million with Lincoln Park Capital Fund, LLC (LPC), a Chicago-based institutional investor. In the third quarter of 2022, the Company sold and issued 200,000 shares of its common stock under the 2022 Purchase Agreement with LPC in the open market resulting in gross proceeds of $0.2 million and net proceeds of $0.1 million, after deducting offering expenses.

Management believes that the Company’s cash and cash equivalents are sufficient to fund operations and capital requirements into the first quarter of 2024. Top-line results from the Company’s confirmatory pivotal Phase 3 RECONNECT trial of Zygel in patients with FXS are expected in the second half of 2023.

About Zygel

Zygel is the first and only pharmaceutically-manufactured cannabidiol formulated as a patent-protected permeation-enhanced clear gel, designed to provide controlled drug delivery into the bloodstream transdermally (i.e. through the skin). Recent studies suggest that cannabidiol may modulate the endocannabinoid system and improve certain behavioral symptoms associated with neuropsychiatric conditions. Zygel is an investigational drug product in development for the potential treatment of behavioral symptoms associated with Fragile X syndrome (FXS), 22q11.2 deletion syndrome (22q) and autism spectrum disorder (ASD). The Company has received orphan drug designation for cannabidiol, the active ingredient in Zygel, from the FDA and the European Commission in the treatment of FXS and from the FDA for the treatment of 22q. Additionally, Zygel has been designated a Fast Track development program for treatment of behavioral symptoms of FXS.

About Zynerba Pharmaceuticals, Inc.

Zynerba Pharmaceuticals is the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. We are committed to improving the lives of patients and their families living with severe, chronic health conditions including Fragile X syndrome, 22q11.2 deletion syndrome and autism spectrum disorder. Learn more at www.zynerba.com and follow us on Twitter at @ZynerbaPharma.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the Company’s current expectations. Management’s expectations and, therefore, any forward-looking statements in this press release could also be affected by risks and uncertainties relating to a number of other factors, including the following: the Company’s cash and cash equivalents may not be sufficient to support its operating plan for as long as anticipated; the Company’s expectations, projections and estimates regarding expenses, future revenue, capital requirements, incentive and other tax credit eligibility, collectability and timing, and availability of and the need for additional financing; the Company’s ability to obtain additional funding to support its clinical development programs; the results, cost and timing of the Company’s clinical development programs, including any delays to such clinical trials relating to enrollment or site initiation; clinical results for the Company’s product candidates may not be replicated or continue to occur in additional trials and may not otherwise support further development in a specified indication or at all; actions or advice of the U.S. Food and Drug Administration and foreign regulatory agencies may affect the design, initiation, timing, continuation and/or progress of clinical trials or result in the need for additional clinical trials; the Company’s ability to obtain and maintain regulatory approval for its product candidates, and the labeling under any such approval; the Company’s reliance on third parties to assist in conducting pre-clinical and clinical trials for its product candidates; delays, interruptions or failures in the manufacture and supply of the Company’s product candidates the Company’s ability to commercialize its product candidates; the size and growth potential of the markets for the Company’s product candidates, and the Company’s ability to service those markets; the Company’s ability to develop sales and marketing capabilities, whether alone or with potential future collaborators; the rate and degree of market acceptance of the Company’s product candidates; the Company’s expectations regarding its ability to obtain and adequately maintain sufficient intellectual property protection for its product candidates; the extent to which health epidemics and other outbreaks of communicable diseases, including COVID-19, could disrupt our operations or adversely affect our business and financial conditions; and the extent to which inflation or global instability, including political instability, may disrupt our business operations or our financial condition. This list is not exhaustive and these and other risks are described in the Company’s periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. Any forward-looking statements that the Company makes in this press release speak only as of the date of this press release. The Company assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

ZYNERBA PHARMACEUTICALS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

ZYNERBA PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEETS

Zynerba Contacts

Jim Fickenscher, CFO and VP Corporate Development
Zynerba Pharmaceuticals
484.581.7483
[email protected]

Peter Vozzo
ICR Westwicke
Office: 443.213.0505
Cell: 443.377.4767
[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.

Year-over-Year Revenue Growth of 34.9% to $72.8 million

Strong Retail Performance and Patient Expansion in Virginia with 48.4% Sequential Increase in Retail Sales in the Commonwealth

BOCA RATON, Fla., Nov. 14, 2022 (GLOBE NEWSWIRE) — Jushi Holdings Inc. (“Jushi” or the “Company”) (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced certain preliminary financial results for the quarter ended September 30, 2022 (“Q3 2022”). The Company also announced that it is in the process of completing its interim asset impairment assessment and expects to record a non-cash, indefinite-lived asset impairment charge in the range of $35.0 to $49.0 million (after-tax of $24.8 to $34.7 million). All financial information is provided in U.S. dollars unless otherwise indicated and is prepared under U.S. Generally Accepted Accounting Principles (“GAAP”).

Third Quarter 2022 Financial Highlights¹

• Total revenue of $72.8 million, an increase of 34.9% year-over-year, and flat as compared to the quarter ended June 30, 2022 (“Q2 2022”)
• Gross profit of $27.7 million, an increase of 18.9% year-over-year and 4.0% as compared to Q2 2022
• Net loss in the range of $52.9 to $62.8 million
• Adjusted net loss², excluding the after-tax indefinite-lived asset impairment charge, of $28.1 million
• Adjusted EBITDA² of $0.7 million
• Cash and cash equivalents were $31.1 million as of the quarter end

¹ See “Financial Disclosure Advisory” below.
² See “Use of Non-GAAP Financial Information” and “Reconciliation of Non-GAAP Financial Measures” below

Third Quarter 2022 Operational Highlights

• Opened the 34^th and 35^th retail locations nationwide and third and fourth Beyond Hello dispensary locations in Virginia
• Expanded overall canopy by 11,000 sq. ft. to a total of 80,000 sq. ft. and increased annual biomass capacity by 7,300 lbs. to a total of 45,500 lbs.
• Added nearly 8,000 new patients in Virginia in Q3 2022, compared to approximately 1,950 patients in Q2 2022. In October, the Company added 2,425 new patients

Recent Developments

• Relocated the Beyond Hello Westside dispensary in Pennsylvania to Dickson City in the Greater Scranton Area
• Debuted newly formulated cannabis infused fruit chews by Tasteology in Massachusetts, available in three new vegan, gluten-free varieties with upgraded sustainable packaging
• Announced partnership with Drop4Drop, a non-profit organization dedicated to helping alleviate the world water crisis, to fund clean water projects across six countries
• Strengthened Board of Directors and senior leadership with the appointment of Bill Wafford as an Independent Director and Chair of the Audit Committee, and Tobi Lebowitz to Chief Legal Officer and Corporate Secretary

Management Commentary

“We remain focused on executing our strategic initiatives to strengthen and expand our operating platform,” said Jim Cacioppo, Chief Executive Officer, Chairman and Founder of Jushi. “During the third quarter, we bolstered our retail portfolio with the addition of two new stores in Virginia, moved closer to full-scale production at our grower-processor facilities in Pennsylvania and Virginia, and expanded our Jushi branded product portfolio across our operational vertically integrated markets. As we approach the end of the year, we expect to begin realizing the benefits of our efforts as we transform the business from substantially retail only and selling mostly third party product, to a company that is vertically integrated.”

Mr. Cacioppo continued, “As we look out to 2023 and beyond, we anticipate that our sales growth and improved profitability will be driven by the growth of the Virginia market, increased production and sell-through of high quality products produced at our grower-processor facilities, and our portfolio of assets focused in markets that are well positioned to take advantage of future state-level regulatory developments. I am incredibly pleased with the significant progress we have made year-to-date and remain highly confident in our market position as we close out the year.”

Financial Results for the Third Quarter 2022¹

The following is a tabular summary and commentary of revenue, gross profit, net income (loss), and net income (loss) per share for the three-month periods ended September 30, 2022, June 30, 2022, and September 30, 2021.
($ in millions, except per share amounts)

Revenue in Q3 2022 increased 34.9% to $72.8 million as compared to $54.0 million in the third quarter of 2021 (“Q3 2021”). The net increase was primarily driven by the Company’s acquisitions in Nevada and Massachusetts, new Beyond Hello store openings in Virginia, along with increased sales at existing stores in Virginia. On a sequential basis, revenue was essentially flat, driven by strong contributions from retail sales in Virginia and Massachusetts and increased wholesale sales in Nevada, offset by a decrease in retail sales in Pennsylvania and Nevada.

Gross profit in Q3 2022 was $27.7 million, or 38.1% of revenue, compared to $26.7 million, or 36.7% of revenue in Q2 2022. The increase in gross margin was primarily driven by an increase in the sell-through rate of Jushi’s private branded products, partially offset by increased promotional activity of Jushi branded products in Pennsylvania.

Q3 2022 net loss, including an indefinite-lived asset impairment charge in the range of $35.0 to $49.0 million, was $52.9 to $62.8 million, compared to net income of $12.1 million in Q2 2022. Adjusted net loss², excluding the after-tax impairment charge, was $28.1 million.

Adjusted EBITDA² in Q3 2022 was $0.7 million, which was flat as compared to $0.7 million in Q2 2022, and a decrease of $5.5 million compared to $6.2 million in Q3 2021. Adjusted EBITDA benefited from increased sales of Jushi branded products, offset by infrastructure and headcount investments at the Company’s grower processors that continue to have a transitional impact as the business scales, and slower-than-expected growth of wholesale operations.

¹ See “Financial Disclosure Advisory” below.
² See “Use of Non-GAAP Financial Information” and “Reconciliation of Non-GAAP Financial Measures” below.

Balance Sheet and Liquidity

As of September 30, 2022, the Company had approximately $31.1 million of cash and cash equivalents. The Company paid approximately $8 million in capital expenditures during Q3 2022. We expect capital expenditures in the fourth quarter to be in the range of $5 to $15 million, prior to any potential tenant improvement reimbursements or financings, for a total of approximately $55 to $65 million for the full year 2022, subject to market conditions and regulatory changes. As of September 30, 2022, the Company had approximately $209 million in principal amount of total debt, excluding leases and property, plant, and equipment financing obligations. As of November 11, 2022, the Company’s issued and outstanding shares were 195,776,372 and its fully diluted shares outstanding were 290,606,855.

Financial Disclosure Advisory

The Company has not yet completed its reporting process for Q3 2022. The preliminary results presented herein are based on the Company’s reasonable estimates and the information available to the Company at this time and, because of their preliminary nature, in certain cases, the Company has provided ranges, rather than specific amounts. As such, the Company’s actual results may materially vary from the preliminary results presented herein and will not be finalized until the Company reports its final results for Q3 2022 after the completion of its normal quarter end accounting and review procedures, including its interim asset impairment assessment. In addition, any statements regarding the Company’s estimated financial performance for the Q3 2022 does not present all information necessary for an understanding of the Company’s financial condition and results of operations as of and for Q3 2022. The preliminary financial results presented herein was not reviewed by our independent registered public accounting firm.

Use of Non-GAAP Financial Information

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial table below, as well as the “Reconciliation of Non-GAAP Financial Measures” section of this press release.

Conference Call and Webcast Information

The Company will host a conference call to discuss its financial results for the third quarter 2022 at 9:00 a.m. ET today, Monday, November 14, 2022.

For interested individuals unable to join the conference call, a webcast of the call will be available for one year following the conference call and can be accessed via webcast on Jushi’s Investor Relations website.

About Jushi Holdings Inc.

We are a vertically integrated cannabis company led by an industry-leading management team. In the United States, Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem. For more information, visit jushico.com or our social media channels, Instagram, Facebook, Twitter and LinkedIn.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation as well as statements that may constitute “forward-looking statements” within the meaning of within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release, including statements regarding our strategy, future operations, intended expansion of our retail operations and production capacity, intended expansion of our cultivation facilities, future financial position, projected costs, prospects, and plans and objectives of management are forward-looking statements. These forward-looking statements are based on Jushi’s current expectations and beliefs concerning future developments and their potential effects. As a result, actual results could differ materially from those expressed by such forward-looking statements and such statements should not be relied upon. 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, information concerning the expectations regarding Jushi, or the ability of Jushi to successfully achieve business objectives, and expectations for other economic, business, and/or competitive factors. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including risks related to the ability of Jushi to successfully and/or timely achieve business objectives, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation, the risk that additional information may arise prior to the completion of restated condensed consolidated interim financial statements or other subsequent events that would require us to make additional adjustments, as well as other risks, uncertainties and other cautionary statements in the Company’s public filings with the applicable securities regulatory authorities on the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected.

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

For further information, please contact:

Investor Relations Contact:
Michael Perlman
Executive Vice President of Investor Relations
561-281-0247
[email protected]

Media Contact:
Ellen Mellody
570-209-2947
[email protected]

JUSHI HOLDINGS INC.
Reconciliation of Non-GAAP Financial Measures

Adjusted net loss, EBITDA and Adjusted EBITDA

In addition to providing financial measurements based on GAAP, the Company provides additional financial metrics that are not prepared in accordance with GAAP. Management uses non-GAAP financial measures, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate the Company’s financial performance. These non-GAAP financial measures are Adjusted net loss, EBITDA and Adjusted EBITDA (each as defined below). Management believes that these non-GAAP financial measures reflect the Company’s ongoing business by excluding the effects of expenses that are not reflective of our operating business performance and allows for meaningful comparisons and analysis of trends in the business. These non-GAAP financial measures also facilitate comparing financial results across accounting periods and to those of peer companies. As there are no standardized methods of calculating these non-GAAP measures, the Company’s methods may differ from those used by others, and accordingly, the use of these measures may not be directly comparable to similar measures used by others, thus limiting their usefulness. Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Adjusted net loss, EBITDA and Adjusted EBITDA are financial measures that are not defined under GAAP. Management defines Adjusted net loss as net loss excluding the after-tax indefinite-lived asset impairment charge. Management defines EBITDA as net income (loss), or “earnings,” before interest, income taxes, depreciation and amortization. Management defines Adjusted EBITDA as EBITDA before: (i) non-cash share-based compensation expense and other one-time charges; (ii) inventory-related adjustments; (iii) fair value changes in derivatives; (iv) asset impairments; (v) other (income)/expense items; (vi) transaction costs; and (vii) start-up costs. These financial measures are metrics that have been adjusted from the GAAP net income (loss) measure in an effort to provide readers with a normalized metric in making comparisons more meaningful across the cannabis industry, as well as to remove non-recurring, irregular and one-time items that may otherwise distort the GAAP net income measure. Other companies in the Corporation’s industry may calculate this measure differently, limiting their usefulness as comparative measures.

JUSHI HOLDINGS INC.
UNAUDITED RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA
(in thousands of U.S. dollars)

(1) Impacted by management’s estimate of impairment charge on indefinite-lived intangible assets; Some of the key assumptions impacting this estimate are discount rates and forecasted cash flows.

(2) Net income (loss) includes amounts attributable to non-controlling interests.

(3) Includes amounts that are included in cost of goods sold and in operating expenses; Q2 2022 has been revised to include estimated unabsorbed depreciation expense.

(4) Includes: (i) non-cash share-based compensation expense for the period; and (ii) severance costs.

(5) Includes: (i) inventory step-up on business combinations; (ii) inventory recall reserves; and (iii) reserves for discontinued products. The inventory step-up on business combinations relate to the fair value write-up on inventory acquired on the business acquisition date and then sold subsequent to the acquisition date. The inventory recall reserves relate to the estimated impact of the Pennsylvania Department of Health recall and ban of vape products containing certain cannabis concentrates. The ban was lifted in June 2022. Q2 2022 has been revised to include the impact of recall reserve reversals during the period.

(6) Includes: (i) remeasurement of contingent consideration related to acquisitions; (ii) losses (gains) on investments and financial assets; and (iii) losses (gains) on legal settlements.

(7) Expansion and start-up costs incurred in order to prepare a location for its intended use. Start-up costs are expensed as incurred and are not indicative of ongoing operations of each new location.

(8) Transaction costs include: (i) registration statement costs such as professional fees and other costs relating to our SEC registration; and (ii) acquisition and deal costs.

(9) See “Financial Disclosure Advisory” above.

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.

WEST PALM BEACH, Fla., Nov. 08, 2022 (GLOBE NEWSWIRE) — AFC Gamma, Inc. (NASDAQ:AFCG) (“AFCG” or “AFC Gamma”) today announced its results for the third quarter of 2022.

Third Quarter 2022 Highlights

• Net income of $11.5 million in Q3 2022, or $0.57 per basic weighted average share of common stock, representing a 45% increase to net income from Q3 2021
• Distributable earnings¹ of $11.8 million in Q3 2022, or $0.59 per basic weighted average share of common stock, representing a 64% increase to distributable earnings from Q3 2021
• Paid a dividend of $0.56 per common share on October 14, 2022 for Q3 2022, representing a 30% increase from Q3 2021
• Distributable earnings exceeded the declared dividend for the seventh consecutive quarter since going public
• Book value of $17.06 per share as of September 30, 2022, an increase of $0.45, or 2.7%, compared to December 31, 2021
• Egan Jones reaffirmed its BBB+ investment grade rating of AFC Gamma

“We are pleased with our third quarter performance and that AFC Gamma’s distributable earnings per share has now exceeded its dividend for the seventh consecutive quarter since going public,” stated Leonard Tannenbaum, AFC Gamma’s Chief Executive Officer. “Given the current broader market environment, we continue to act disciplined in our approach towards deploying capital to new and existing operators. Given substantial repayments subsequent to quarter end, our balance sheet remains strong, and we have ample capacity to complete additional deals with strong risk-adjusted returns.”

Portfolio and Investment Activity

• Closed $203.8 million of new commitments and funded $167.6 million of new and existing commitments year-to-date as of November 1, 2022, including approximately $32.0 million which was refinanced from existing borrowers
• Total loan commitments of $426.2 million ($368.6 million of which has been funded) across 12 portfolio companies as of November 1, 2022
• The portfolio’s weighted average yield to maturity was approximately 20% as of November 1, 2022
• All loans are current and performing

Results of Operations for the Quarter Ended September 30, 2022

• Total net interest income of $18.1 million, an increase of $7.5 million, or 71%, compared to Q3 2021
• Distributable earnings¹ of $11.8 million, an increase of $4.6 million, or 64%, compared to Q3 2021

Dividend Payments

• On October 14, 2022, AFCG paid a regular quarterly cash dividend of $0.56 per share of common stock to its stockholders of record as of September 30, 2022
• The aggregate amount of the regular cash dividend payment of $0.56 per share was approximately $11.4 million, which represents a 30% increase per share compared to the quarter ended September 30, 2021

¹ See “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.

Additional Information

AFCG issued a presentation of its third quarter 2022 results, titled “Third Quarter 2022 Earnings Presentation,” which can be viewed at www.afcgamma.com under the Investor Resources section. AFCG also filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, with the Securities and Exchange Commission on November 8, 2022.

AFC Gamma routinely posts important information for investors on its website, www.afcgamma.com. AFCG intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC Gamma encourages investors, analysts, the media and others interested in AFCG to monitor the Investors section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section.

Conference Call & Discussion of Financial Results

AFC Gamma, Inc. will host a conference call at 10:00 am (Eastern Time) on Tuesday, November 8, 2022, to discuss its quarterly financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC Gamma’s website found here: AFC Gamma — Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of AFC Gamma’s website.

About AFC Gamma

AFC Gamma, Inc. (NASDAQ:AFCG) is an institutional lender that provides a range of lending solutions to established operators in the cannabis industry. AFC Gamma originates, structures and underwrites senior secured loans and other types of financing to operators in states that have legalized medicinal and/or adult-use cannabis. AFC Gamma’s senior management team has over 100 years of combined experience in investment management and disciplined credit investing across a range of economic cycles.

Non-GAAP Metrics

In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most-recently filed quarterly report. We use this non-GAAP financial measure both to explain our results to stockholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information they provide are useful to investors since these measures permit investors and stockholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance.

The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Fees earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated prior to Incentive Fee expense, while the calculation of Distributable Earnings account for any Incentive Fees earned for such time period. We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for current expected credit losses (“CECL”), (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.

We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to stockholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least 90% of our annual REIT taxable income and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, we generally intend to attempt to pay dividends to our stockholders in an amount equal to our net taxable income, if and to the extent authorized by our Board. Distributable Earnings is one of many factors considered by our Board in declaring dividends and, while not a direct measure of net taxable income, over time, the measure can be considered a useful indicator of our dividends.

Distributable Earnings are non-GAAP measures and should not be considered as substitutes for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.

The following table provides a reconciliation of GAAP Net Income to Distributable Earnings:

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our manager to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; the demand for cannabis cultivation and processing facilities; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in the AFC Gamma’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the AFC Gamma’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC Gamma. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

AFC GAMMA INVESTOR CONTACT:
Robyn Tannenbaum
(561) 510-2293
[email protected]

AFC GAMMA MEDIA CONTACT:
Mark Sinclair
MATTIO Communications
[email protected]

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

About Ryan Allway

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

CALGARY, AB AND MOUNTAIN VIEW, CA, Nov. 3, 2022 /CNW/ – Willow Biosciences Inc. (“Willow” or the “Company“) (TSX: WLLW)  (OTCQB: CANSF), a leading biotechnology company focused on revolutionizing industrial manufacturing of pure, consistent and sustainable functional ingredients, has released its financial and operating results for the three and nine months ended September 30, 2022, reporting significant progress to its operational platform, leadership and strong liquidity. Additionally, Willow has announced today that its Board of Directors has appointed Dr. Peter Seufer-Wasserthal as its President and CEO, effective November 3, 2022.

Dr. Seufer-Wasserthal has served as interim President and CEO since July 2022 and brings extensive experience in biotech, pharma, nutrition, and consumer care to the Company and has already advanced several partnership discussions in the food and nutrition sectors.  He will continue to build and lead the organization needed to successfully execute on the Company’s mission. Dr. Seufer-Wasserthal will continue to serve as Chairman of the Board of the Company.

“The third quarter saw us take another step forward in becoming a leader in precision fermentation”, said Dr. Peter Seufer-Wasserthal. “Our FutureGrown platform technology has allowed to secure partnerships and identify attractive functional ingredient opportunities leveraging off our initial work done on cannabinoids, and we are excited to continue to de-risk our portfolio to create value for our stakeholders.”

Willow’s unaudited consolidated interim financial statements and related management’s discussion and analysis for the quarter ended September 30, 2022 are available on SEDAR at www.sedar.com.

Highlights for the Quarter

• On July 18, 2022, Willow appointed Dr. Peter Seufer-Wasserthal as Interim President and Chief Executive Officer, effective July 17, 2022, in connection with Trevor Peters’ retirement as President and CEO. Mr. Peters continues to serve as a Director of the Company.
• On August 31, 2022, Willow provided an update on Generally Recognized as Safe (“GRAS“) status for its FutureGrown cannabigerol (“CBG“) product. The Company successfully completed the Stage 1 toxicological assessment for oral product applications. Willow anticipates initiating its Stage 2 pivotal toxicological assessment in Q3 2022 and attaining an independent conclusion of GRAS in the first half of 2023.
• Subsequent to the quarter, on October 12, 2022, the Company announced that it had completed proof of concept work on a new functional ingredient Astaxanthin. Astaxanthin is a red pigment, belonging to a group of chemicals known as carotenoids. In addition to its pigmentation properties, it is one of nature’s most powerful antioxidants. Development is currently underway to establish a commercial production process for pure, consistent & sustainable FutureGrown Astaxanthin.
• Willow ended the quarter in a strong financial position, with approximately $18.7 million in working capital (see “Specified Financial Measures” below) and $18.4 million of cash on hand.

Outlook

Willow is positioned to become a leader in precision fermentation by capturing key intellectual property around what the Company anticipates being the most cost-effective methods to produce highly pure ingredients. The Company’s operational capabilities, along with its strategic partners, span the entire product development pathway, and Willow’s integrated R&D team in California has the full capabilities to deliver at all stages of the development cycle. The Company’s established technology, capabilities, and manufacturing network can now enable biobased production for a diverse set of industries.

While the market for biosynthetically produced cannabinoids has not materialized to the extent originally anticipated, Willow remains optimistic about the long-term market potential for these ingredients and continues to optimize its production process.

While the market for biosynthetically produced cannabinoids continues to develop, Willow will utilize it’s proven FutureGrown^TM platform to partner with companies in the personal care, food and beverage, and pharmaceutical markets, providing access to pure, consistent and sustainable functional ingredients. So far this year the Company has announced its first partnered, non-cannabinoid program, and its first new non-cannabinoid functional ingredient, Astaxanthin. Willow is excited to continue to be adding partnerships and products, expanding its platform and de-risking its portfolio.

About Willow Biosciences Inc.

Willow develops and produces high-purity ingredients for the personal care, food and beverage, and pharmaceutical markets. Willow’s FutureGrownÔ biotechnology platform allows large-scale production with sustainability at its core. Willow’s R&D team has a proven track record of developing and commercializing bio-based manufacturing processes and products to benefit our B2B partners and their customers.

Specified Financial Measures

This press release contains certain specified financial measures, as described below, which do not have standardized meanings as prescribed by GAAP. As these non-GAAP financial measures are commonly used, the inclusion is useful to investors, however these amounts may not be comparable with the calculation of similar measures by other companies.

“Working capital (non-GAAP financial measure)” is calculated as total current assets minus total current liabilities. Management utilizes working capital to monitor its liquidity, capital management and its ability to fund current operations.

Please refer to the MD&A for additional information relating to specified financial measures. The MD&A can be accessed either on Willow’s profile on www.sedar.com.

Forward-Looking Statements

This news release may include forward-looking statements including future-oriented financial information and financial outlooks within the meaning of securities laws, opinions, assumptions, estimates and the Company’s assessment of future plans and operations, and, more particularly, statements concerning: the continued development of Willow’s FutureGrown CBG, and anticipated timing of GRAS status relating thereto; development and commercial production of FutureGrown Astaxanthin; the demand and market size potential of the synthetic ingredients industry; and the business plan of the Company, generally, including becoming a leader in precision fermentation, research and production of functional ingredients. When used in this news release, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company which include, but are not limited to: the success of Willow’s strategic partnerships, including the development of future strategic partnerships; the financial strength of the Company; the ability of the Company to fund its business plan using cash on hand and existing resources; the market for Willow’s products, including FutureGrown CBG and FutureGrown Astaxanthin; the ability of the Company to obtain and retain applicable licences; the ability of the Company to obtain suitable manufacturing partners and other strategic relationships; and the successful implementation of Willow’s commercialization and production strategy, generally. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ from the Company’s expectations, including but not limited to: the biotechnology industry in general; the success of the Company’s research and development strategies; infringement on intellectual property; failure to benefit from partnerships or successfully integrate acquisitions; uncertainty of costs and expenses due to inflationary pressures; actions and initiatives of federal and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies; import/export and research restrictions for cannabinoid-based operations; the size of the medical-use and adult-use cannabinoid market; competition from other industry participants; adverse U.S., Canadian and global economic conditions; adverse global events and public-health crises, including the current COVID-19 outbreak; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company’s most recent annual information form and management’s discussion and analysis for additional risk factors relating to Willow, which can be accessed either on Willow’s website at www.willowbio.com or under the Company’s profile on www.sedar.com.

Any financial outlook and future-oriented financial information contained in this document regarding prospective financial performance, financial position, cash balances or revenue is based on assumptions about future events, including economic conditions and proposed courses of action based on management’s assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future-oriented financial information or a financial outlook. 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. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.

The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

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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.