$3.3 million Net Income highlights sustained profitability

VANCOUVER, BC, Dec. 16, 2021 /CNW/ – C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) (“C21” or the “Company”), a vertically integrated cannabis company, today announced unaudited results for its third quarter ended October 31, 2021. All currency reported in U.S. dollars (unless otherwise noted).

Financial Highlights (period ending October 31, 2021):

• Revenue of $8.2 million; Year-to-Date Nevada revenue up 3% over last year
• Gross Profit of $4.4 million; Gross Margin of 43% before fair value adjustments
• Adjusted EBITDA¹ of $2.2 million (a 27.4% EBITDA Margin) and $8.6 million year-to-date
• Nevada EBITDA of $3.8 million, up 14% over Q2; Nevada EBITDA of $11.5 million Year-to-Date
• Net Income of $3.3 million; Earnings Per Share of $0.03 for Q3 and $0.09 year-to-date
• Cash Flow from Operations of $5.5 million Year-to-Date which includes $3.1 million Income Tax paid
• Total Liabilities reduced by $4.2 million from Q2; $14.7 million in reductions Year-to-Date

Financial Commentary:

Revenue for the third quarter was $8.2 million, down 9% from Q2, in line with industry trends for the period. Comparatively, the State of Nevada reported a 17% decline in cannabis sales from July to September 2021². Recognizing market conditions, C21 remained vigilant in sustaining the profitability of its operations. The Nevada segment continued to deliver strong results, including $3.8 million in EBITDA for the third quarter – up 14% over Q2 – and $11.5 million Nevada EBITDA year-to-date (see Nevada EBITDA table in MD&A and below).

“C21 continues to deliver positive free cash flow and profitable bottom-line performance. Despite challenging markets in the quarter, our focus on efficiency delivered $0.03 in Earnings per Share, and allowed us to make further significant reductions to Total Liabilities,” stated Sonny Newman, President and CEO of C21. “The first harvest from our expanded cultivation facility was completed in the third quarter, which delivered an 18% average increase in flower yields. As planned, we are now selling flower in the Nevada wholesale market, which we expect will drive topline growth moving forward. While the consolidation environment in the industry remains highly competitive, we continue to weigh strategic opportunities for the Company to maximize shareholder value.”

Gross Profit for the quarter was $4.4 million, with Gross Margin of 43.0% before fair value adjustments down from 52% in Q2. This was impacted primarily by a decline in sales and weaker margins in Oregon. Nevada operations continued to deliver strong Gross Margin of 52.0% before fair value adjustments, up 100 basis points over Q2. The Company delivered $2.2 million of Adjusted EBITDA¹ for the quarter, a 27.4% EBITDA Margin. Year-to-date adjusted EBITDA was $8.6 million, a 32.6% EBITDA Margin. SG&A expenses were relatively flat at $1.9 million (23% of revenue) for Q3.

Cash Flow from Operations was $1.0 million for Q3 – the tenth consecutive quarter of positive Cash Flow from Operations – and totals $5.5 million year-to-date after $3.1 million in Income Tax paid (see Statement of Cash Flows). Q3 Cash Flow from Operations was impacted by pay down of accrued Income Tax of $1.4 million as well as Special Project costs of $0.2 million.

The Company reported Net Income of $3.3 million for Q3, or $0.03 Earnings Per Share and $11.4 million Net Income ($0.09 EPS) year-to-date. This included changes in fair value of derivative liabilities (see MD&A). Excluding the changes in derivative liabilities, Adjusted Net Income¹ was $1.0 million for Q3.

Cash position at end of the third quarter was $3.3 million, down $0.9 million from Q2 reflecting the aforementioned accrued Income Tax payments and other one-time costs. The Company’s Senior Secured Note was reduced by $1.5 million in the quarter. As a result, Total Liabilities for Q3 were reduced by $4.2 million from last quarter and $14.7 million year-to-date (see Balance Sheet summary provided).

Subsequent to the quarter end, the Company announced plans to transition to U.S. GAAP accounting for the fourth quarter and current fiscal year ending January 31, 2022 (see news release dated November 18, 2021).

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Non-IFRS Measures:

“Adjusted EBITDA” and “Adjusted Net Income” are supplemental, non-GAAP financial measures. The Company defines EBITDA as earnings before depreciation and amortization (excluding rent classified as lease amortization), income taxes, and interest. Additionally, the Company’s Adjusted EBITDA presented above excludes fair value adjustments, accretion, impairment charges, one-time transaction costs and all other non-cash items. The Company has presented “Adjusted EBITDA” and “Adjusted Net Income” because management believes these are useful measures for investors when assessing and considering the Company’s continuing operations and prospects for the future. Furthermore, “Adjusted EBITDA” is a commonly used measurement in the financial community when evaluating the market value of similar companies. “Adjusted EBITDA” and “Adjusted Net Income” are not measures of performance calculated in accordance with IFRS, and these metrics should not be considered in isolation of, or as a substitute for, the measurement of the Company’s performance prepared in accordance with IFRS. “Adjusted EBITDA,” as calculated and reconciled in the table above, may not be comparable to similarly titled measurements used by other issuers and is not necessarily a measure of the Company’s ability to fund its cash needs.

Balance Sheet:

Financial Summary:

Adjusted EBITDA:

Nevada EBITDA (see MD&A):

About C21 Investments Inc.

C21 Investments is a vertically integrated cannabis company that cultivates, processes, and distributes quality cannabis and hemp-derived consumer products in the United States. The Company is focused on value creation through the disciplined acquisition and integration of core retail, manufacturing, and distribution assets in strategic markets, leveraging industry-leading retail revenues with high-growth potential multi-market branded consumer packaged goods. The Company owns Silver State Relief and Silver State Cultivation in Nevada, and Phantom Farms and Eco Firma Farms in Oregon. These brands produce and distribute a broad range of THC and CBD products from cannabis flowers, pre-rolls, cannabis oil, vaporizer cartridges and edibles. Based in Vancouver, Canada, additional information on C21 Investments can be found at www.sedar.com and www.cxxi.ca.

Cautionary Statement:

Certain statements contained in this news release may constitute forward-looking statements within the meaning of applicable securities legislation. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include the Company’s positioning in the United States cannabis industry, the Company’s ability to scale its existing vertical operations, the performance of the Company’s operations generally and specifically in Nevada and Nevada retail, the Company’s ability to remain profitable and outperform the market generally in Nevada, the performance of the Company’s Nevada cultivation expansion including increased flower yields, the Company’s ability to take advantage of opportunities in the wholesale market in Nevada, the performance of the Company’s brands and the continued demand for cannabis products, the ability of the Company to successfully extend its retail footprint and pursue accretive growth, the expected benefits of the Company’s transition to U.S. GAAP, and the nature and extent of the impact of the COVID-19 pandemic.

The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks and uncertainties arising from the impact of the COVID-19 pandemic on the Company’s operations, and other factors, many of which are beyond the control of the Company.

The forward-looking statements contained in this news release represent the Company’s expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

________________________________________

SOURCE C21 Investments Inc.

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

About Ryan Allway

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

• Q3 year to date revenue increased 386% year over year to $36.9 million for the nine months ended September 30, 2021

• EBITDA of $5.9 million is an increase of $11.7 million over Q3 2020,
• Adjusted sales¹ of $99.2 million for the nine months ended September 30, 2021
• Michigan Marijuana Regulatory Agency issued pre-qualification for RWB cannabis licensure
• Florida expansion strategy included 45,000 sq ft cultivation center purchased in Q3

TORONTO, Nov. 30, 2021 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB and OTCQX: RWBYF) (“RWB” or the “Company”), a multi-state cannabis operator and house of premium brands, announces 2021 third quarter financial results highlighted by a 93% increase in third quarter year over year revenue. All figures are reported in Canadian dollars (CAD) unless otherwise noted.

“In the third quarter, we made excellent progress in laying additional building blocks in our core operating states of Florida, Michigan, and California to become more vertically integrated where it will be most profitable,” stated Brad Rogers, RWB Chairman & CEO. “This will help drive increased revenue and margins for the Company. Simultaneously, we are gaining significant market share with our premium Platinum Vape (PV) and exclusively licensed High Times^® branded products in select markets as evidenced by ArcView/Greentank’s 2021 Q3 Industry Vape Report, which named Platinum Vape as the #1 brand vape cartridge in Michigan.”

Q3 2021 Financial Result

Revenue for Q3 2021 was $11.8 million compared to $6.1 million in Q3 2020, an increase of 93%.

EBITDA was $5.9 million for Q3 compared to an EBITDA loss of $5.8 million in Q3 2020, a gain of $11.9 million.

Net loss for Q3, 2021 was $5.5 million compared to $9.5 million in Q3, 2020. The change in net loss was primarily a result of revaluation of the Company’s Call/Put options, as well as rightsizing compensation and achieving economies of scale.

Nine Months Ended Sept 30, 2021 Results

Revenue for the nine months ended September 30, 2021 was $36.9 million, an increase of 386% over revenue of $7.6 million in the comparable nine months ended September 30, 2020.

Gross profit excluding fair value items for the nine months ended September 30, 2021 was $21.5 million, an increase of 295% over gross profit of $5.5 million in the comparable nine months ended September 30, 2020.

Net loss for the nine months ended September 30, 2021 was $73.8 million compared to net loss of $29.8 million for the nine months ended September 30, 2020. The increase in net loss is primarily attributable to ramping up operations in our core markets in expectation of fortifying our brand strategy, which includes expanding and deepening our High Times retail and product presence and completing the pending investee transaction.

Adjusted Sales¹

RWB currently utilizes a state-licensed 3^rd party cannabis manufacturer in Michigan for Platinum Vape sales. As part of the legacy product licensing agreement, the revenue RWB can recognize is product sales less inventory purchases and direct expenses. As a result, RWB’s reported revenue in Michigan is substantially understated by inventory purchases made and direct expenses incurred during the period.

Summary of EBITDA

Currently the majority of revenue is derived from sales of cannabis finished products through third party wholesaling to retailers. RWB will be vertically integrated upon the closing of the pending acquisition of the Michigan investee. RWB anticipates this will leverage cost sharing and other economies of scale to further improve margin.

Chris Ecken, RWB CFO, stated, “RWB is being very strategic in pursuing vertical integration only when there is value to be added. We aim to be asset light and brand rich. Our strategy is to support the brands in the most profitable way. We have been putting the teams in place to support this strategy in each state where we operate. As RWB integrates vertically in multiple states, we anticipate that our margins will dramatically increase, enabling us to move toward profitability.”

Michigan Acquisition Update

Red White & Bloom’s RWB Michigan LLC subsidiary finalized the revised structure for the closing on its purchase of its Michigan Investee and received Adult Use (recreational use) prequalification status pursuant to the licensing provisions of the Michigan Regulation and Taxation of Marihuana Act (MRTMA). RWB has continued to work closely with Michigan’s Marijuana Regulatory Agency (“MRA”) and is making progress on the closing of the acquisition of the Michigan facilities, which include active and planned dispensaries; cultivation facilities; and significant company-owned real estate holdings. These Michigan facilities generated $93 million in revenue in 2020. At this time, no investee revenue or expenses (other than expenses related to transaction costs) are included in the RWB financial results. RWB acknowledges that the transaction is taking longer than anticipated but has used this time to prepare from an operational, HR and planning perspective.

During Q3 2021, RWB closed on the acquisition of the Apopka, Florida cultivation facility and readied 30 grow pods for transition onto the site, with the anticipation of being fully planted by Dec. 1, 2021 . RWB projects first full year revenue of $50.8 million from the 30 pods and greenhouse in Apopka. The average Florida cannabis operators are currently reporting gross margins of approximately 60%.

“We are extremely proud of our employees and their excellent track record of achievements, particularly in Florida, where they have met all deadlines on time and within budget related to the preparation and now the start of operations for our new processing facility in Sanderson and our cultivation facilities in Apopka,” Rogers said. “We will update shareholders on our progress shortly and are eager to share how our work in Florida and other areas is coming to fruition in Q1 2022 quarterly results.”

Balance Sheet

RWB is seeking to take advantage of the currently lower interest rates available to cannabis entities. The Company is in advanced discussions with a number of funds to restructure the current debt of $115 million due in 2022 into a more advantageous long-term debt solution.

Additional highlights of Q3, 2021

• Florida
  • Closed acquisition of 45,000 sf greenhouse on 4.7 acres in Orange County Florida
  • RWB Florida began producing edibles at the Sanderson facility
  • R&D resulted in new formulations for live rosin that are now in approval process by state regulators. New product formulations will contribute to additional product available in RWB’s dispensary and additional dispensaries scheduled to open in the first quarter of 2022.
• Michigan
  • RWB took over operational control of Platinum Vape, leveraging efficiencies of scale across multiple states
  • RWB received Adult Use (recreational license) – the final major regulatory hurdle to completion of the long-awaited (Michigan investee)retail, cultivation and real estate assets that generated $93 million in revenue in 2020.
  • Completed build out of a separately acquired processing facility for the production of vapes, chocolates and gummies. Received local zoning approval and are awaiting step-2 licensing by MRA. Once complete, RWB will be able to recognize all topline revenue for all RWB controlled brands from this facility.
• Illinois
  • The previously announced acquisition of a fully licensed cannabis company via a binding LOI from a non-profit has created an additional layer of complexity for the seller. RWB is working with regulators to move forward.
• California
  • RWB has transitioned the management oversight of Platinum Vape brand to its own team. With the improved operational structure and procedures, RWB is achieving greater operational efficiencies in areas including packaging, purchasing, procurement and distribution.
  • RWB is on track to expand distribution of the brand in 2022, anticipating doubling its footprint in California and expanding beyond vapes.
• Former US Congressman Ryan Costello joined the RWB Board of Directors
• Adopted a rolling stock option plan to attract top quality management and granted restricted shares to employees to attract and retain talent in an extremely tight job market.

Expanding Work Force

“Our talented employees are our most important asset and are critical to achieving our goals,” Rogers stated. “Companies across North America are struggling to retain skilled employees at all levels. We have brought together top talent from other commodity markets and similar industries to strengthen our management team, highlighted by the recent addition of Chris Ecken, RWB CFO from spirits industry leader Brown Forman. With a number of additions in the organization over the last year, we now have key members of our management team in place to support our strategy.”

RWB has also expanded its Integrated Services Group, which includes human resources (HR), IT, compliance, risk management and finance and accounting. This will facilitate incorporating RWB values and core beliefs for all operations.

The HR team has been instrumental in recruiting and retaining a diverse workforce, multi-lingual communications, and aligning roles and responsibilities. RWB has increased salaries to be more competitive in the market and recognize employees’ service, work ethic and experience. As a result, RWB has recalibrated wages for equal pay for equal work in California and Florida and plans to continue this practice as the Company grows.

RWB has instituted stock options for management and granted restricted shares to employees as a means to offer a stake in the future success of RWB that The Company anticipates will result from their expertise and continued dedication.

“As we work to close the Michigan investee transaction and expand in California and Florida, we will be bringing on a number of new employees in each market, as well as further expanding the breadth and depth of our management team,” Rogers noted. “Our investment in a talented work force will be a key factor in helping us continue our upward trajectory of growth and increased revenue, while propelling our house of premium brands toward profitability.”

Earnings Conference Call
RWB will host a conference call followed by a Q& A with management on Tuesday, November 30^th, 2021 at 5:00 PM ET. The webcast link to listen online and ask questions is: https://78449.themediaframe.com/dataconf/productusers/rwblm/mediaframe/47398/indexl.html. Questions during the Q&A will only be accepted via this online link.
The dial-in numbers for the conference call, for listening only, are 877-705-6006 and 201-689-8557.

A replay of the call will be available for 90 days starting three hours after the conclusion of the call by dialing 877-660-6853 or 201-612-7415 then entering access ID:13725118
A recording of the call will be available on RWB’s Investor Relations website at https://ir.redwhitebloom.com/ approximately three hours following the conference call.

Reference
¹ Adjusted sales is a non-IFRS measure. Adjusted sales definition: Platinum Vape’s actual wholesale sales currently done through a third party in Michigan under license. Upon successful completion of step 2 licensing in MI, RWB will migrate Michigan operations to RWB-owned and licensed facilities.

About Red White & Bloom Brands Inc.

The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets, including Florida, Michigan, Illinois, Massachusetts, Arizona and California with respect to cannabis, and the US and internationally for hemp-based CBD products.

Visit us on the web: www.RedWhiteBloom.com

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

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

Brad Rogers, CEO and Chairman
604-687-2038

Tyler Troup, Managing Director
Circadian Group IR
[email protected]

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

FORWARD LOOKING INFORMATION

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

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, market size, and the volatility of the Company’s common share price and volume. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

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

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

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

About Ryan Allway

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

• Q3 2021 revenue increased 83% YoY to $3.5 million compared to the previous year
• Gross profit before changes in FV in Q3 2021 increased 62% sequentially to $1.7 million
• Medical cannabis revenues increased 46% sequentially to $1.2 million
• Continued strong gross margins for medical cannabis segment at 89%

TORONTO, Nov. 22, 2021 /PRNewswire/ – Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe, today announces its financial results for the quarter ended September 30, 2021. These filings are available for review on the Company’s SEDAR profile at www.sedar.com. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.

Third Quarter 2021 Highlights

• Medical cannabis revenue of $1.2 million, represents 34% of total revenue
• Europe represents 31% of medical cannabis revenue
• Increased gross margin for clinic services segment of 26%, compared to 12% in Q3 2020 and 15% in Q2 2021
• Over 50% year-over-year reduction in net loss of –$3.3 million, compared to –$6.7 million in Q3 2020
• $15.4 million in cash as of September 30,2021

Summary of Key Financial Results

Key Operating Statistics

Management Commentary
“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits. Prescription growth were driven by our patient-focused operations in Colombia and Germany. In the first 9 months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600% while maintaining medical cannabis margins of over 89%. ” comments Alvaro Torres, Chief Executive Officer and Director of the Company.

Mr. Torres continues, “As expected, Europe is becoming a more significant region for Khiron, representing 31% of our medical cannabis revenue. With the opening of Zerenia^TM Clinics in the UK, we have now established an international clinic footprint that will continue to drive sustainable growth in the future. A year ago, our Company was just starting medical cannabis sales in Colombia, and now we have 15 clinics, in 5 countries, and soon in Mexico. We are very excited about our quarterly growth rate, and the growing evidence that Khiron is fulfilling its mission to improve the quality of life of our patients.”

Khiron invites individual and institutional investors, as well as advisors and analysts, to attend the Company’s Third Quarter 2021 Conference Call, followed by a Q&A session.

Conference Call Date: November 22, 2021
Time 10:00 a.m. Eastern time
Toll-free dial-in number: 1-877-270-2148
International dial-in number: 1-412-902-6510

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Khiron Investor Relations team at (647) 556-5750

A telephonic replay of the conference call will also be available after 8:00 p.m. Eastern time on the same day through November 29, 2021.

Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay ID: 10162133

About Khiron Life Sciences Corp.
Khiron is a leading vertically integrated international medical cannabis company with core operations in Latin America and Europe. Leveraging wholly-owned medical health clinics and proprietary telemedicine platforms, Khiron combines a patient-oriented approach, physician education programs, scientific expertise, product innovation, and agricultural infrastructure to drive prescriptions and brand loyalty with patients worldwide. The Company has a sales presence in Colombia, Peru, Germany, UK, and Brazil and is positioned to commence sales in Mexico. The Company is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced and diverse executive team and Board of Directors.

Visit Khiron online at investors.khiron.ca and on Linkedin at https://www.linkedin.com/company/khiron-life-sciences-corp/

Forward-Looking Statements

This press release may contain certain “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Khiron undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Khiron, its securities, or financial or operating results (as applicable). Although Khiron believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statement has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Khiron’s control, including the risk factors discussed in Khiron’s Annual Information Form which is available on Khiron’s SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Khiron disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

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

Achieves Record Gross Margin, Positive Adjusted EBITDA and Continues to Lead the Edibles Category in Canada

LONDON, ON, Nov. 16, 2021 /CNW/ – Indiva Limited (the “Company” or “Indiva“) (TSXV: NDVA) (OTCQX: NDVAF), the leading Canadian producer of cannabis edibles, is pleased to announce its financial and operating results for the third quarter of fiscal 2021 ended September 30, 2021. 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 press 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, 2021, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2021 and 2020, which are filed on SEDAR and available on the Company’s website, www.indiva.com.

“We are delighted to report strong year-over-year net revenue growth, record gross profit margins in the third quarter of 2021, and positive adjusted EBITDA for the second consecutive quarter. Indiva maintained leading market share in the edibles category in the third quarter, driven by new product introductions and organic growth of existing SKUs,” said Niel Marotta, President and Chief Executive Officer of Indiva. “Looking forward to the fourth quarter of 2021, we expect to see sequential net revenue growth based on continued organic growth, the strength of purchase orders booked to date, and expected new SKU and product introductions. We also expect to see continued margin expansion in the fourth quarter of 2021, driven by higher revenues and continued improvement in operating efficiencies. Indiva has grown its national distribution platform to all ten provinces and two territories, and is a trusted partner to all provincial wholesalers. Looking ahead to 2022, Indiva will leverage this distribution platform, and our ability to continue to profitably scale production through our best-in-class operations, to drive continued organic growth.”

HIGHLIGHTS

Quarterly Performance

• Gross revenue in Q3 2021 was $8.3 million representing a 143% increase year-over-year from Q3 2020, and a 15.9% sequential decrease from Q2 2021. Year-to-date, gross revenue increased 194% year over year to $25.04 million. This represents Indiva’s 7^th consecutive quarter of year-over-year net revenue growth.
• Net revenue in Q3 2021 was $7.72 million representing a 155% increase year-over-year from Q3 2020, and a 15% sequential decrease due to seasonal weakness and against difficult comparisons from Q2 2021, which had the benefit of the introduction and initial sell-in of three Wana Quick SKUs as well as two new Bhang chocolate SKUs. Monthly net revenue has rebounded since the trough in August. Year-to-date, net revenue increased 203% year over year to $23.0 million.
• Net revenue from edible products grew to $6.92 million, up 226% from $2.12 million in the prior year period and down 18% from $8.43 million in Q2 2021. Edible product sales represent 90% of net revenue in Q3 2021.
• Gross profit excluding fair value adjustments, impairments and one-time items, improved by 320% year over year to $2.82 million, and adjusted gross margin improved to a record 37.8% of net revenue versus 34% in Q2 2021 and 22.2% in Q3 2020. Gross profit excluding fair value adjustments, impairments and one-time items declined 8.6% sequentially due to lower quarterly revenues, offset by lower distillate costs. Year-to-date, gross profit increased to $7.08 million, or 31.1% of net revenue, versus $1.31 million or 17.3% of net revenue in the corresponding nine month period last year.
• The Company expects gross margins to continue to improve in the fourth quarter of 2021 and into 2022, due to improved operating efficiencies from increased output, with diminishing benefit from lower distillate costs.
• In Q3 2021, Indiva sold products containing 42 million milligrams of distillate, the active ingredient in edible products, which represents a 19% decrease when compared to the 52 million milligrams in product sold in Q2 2021, and a 313% increase compared to 10 million milligrams sold in Q3 2020. The average distillate cost was $0.005 per mg in Q3 2021, which is much more in line with current spot prices.
• Impairment charges in the quarter totaled $0.446 million, including the disposal of aged inventory.
• Operating expenses in the quarter were flat sequentially at $3.0 million versus Q2 2021 driven by higher marketing costs, offset by lower sales commissions. Operating expenses as a percentage of net revenue increased to 39.2% in Q3 2021 versus 34.1% in Q2 2021, but decreased significantly versus 71.6% in Q3 2020. Year over year, operating expenses increased by 39.4% versus Q3 2020, primarily due to higher marketing and sales commissions driven by higher sales volumes, and higher public company costs. Year-to-date, operating expenses increased by 55.4% to $8.3 million, but declined as a percentage of revenue to 36.2% from 70.5%. The Company expects operating expenses to continue to decline as a percentage of net revenue as the year progresses, and into 2022.
• Adjusted EBITDA remained positive, declining sequentially in Q3 2021 to $0.17 million versus $0.54 million in Q2 2021, and a loss of $1.1 million in Q3 2020, driven by lower sequential revenue versus Q2 2021, offset by lower distillate costs. Year-to-date, adjusted EBITDA was positive at $0.22 million, versus a loss of $3.25 million in the nine month period last year.
• The Company recorded a $4.99 million loss on contract settlement due to the termination of the Dycar manufacturing agreement. Going forward, the company expects significantly improved cash flow from operations on a monthly basis, due to the refinancing and elimination of this contract.
• Comprehensive net loss was $6.43 million for the quarter and included one-time expenses and non-cash charges totaling $5.44 million. Net loss per share was $0.05 versus $0.04 in Q3 2020. Excluding these charges, comprehensive loss in the quarter declined to $0.99 million, or $0.01 per share, versus a loss of $2.13 million in Q3 2020.
• Cash balance at the end of the quarter, which excludes the debt financing and warrant proceeds received subsequent to quarter-end, was $2.6 million.

Q3 2021 Market Share

• Sell through data from Hifyre for the third quarter of 2021 continues to show strong sales of Indiva edible products. Retail sales of Indiva products measured by dollars and units continued to grow in the quarter, while market share declined slightly due to sales of products by new category entrants. With 45% share of sales in the third quarter, Indiva continues to hold its lead in the #1 market share position in the edibles category:

Operational Highlights for the Third Quarter Fiscal 2021

• Recent OCS data showed that for the quarter ended June 30, 2021, four of the top 10 cannabis products sold by the OCS were Indiva products, as measured by units sold, including three Wana SKUs and one Bhang Chocolate SKU.
• Indiva expanded its distribution platform to include Prince Edward Island. Indiva now sells product in all 10 provinces in Canada, two territories and in the medical channel through partnerships, including Medical Cannabis by Shoppers.
• Indiva introduced three new Cookie SKUs from Slow Ride Bakery to the Ontario market, marking Indiva’s first baked goods introduced in the edibles category. According to Hifyre data, Indiva held leading market share in the baked goods sub-category for September 2021, despite distribution beginning in August 2021 and being limited only to the province of Ontario. Subsequently, Indiva has expanded distribution of Slow Ride Cookies to two additional provinces, and has introduced two new holiday themed SKUs.
• Indiva introduced a new 10-pack SKU of Wana Strawberry 10:1.
• Indiva introduced additional premium strains under the Artisan Batch brand, including Unicorn Sherbert by KRFT, Cereal Milk by KRFT and Sticky Larry by Stinky Greens, and expanded its distribution of the Artisan Batch brand to Alberta.

Events Subsequent to Quarter End

• Indiva completed its Warrant Incentive Program on October 12, 2021. A total of 8,866,666 warrants were exercised, providing gross proceeds to the Company of $3.55 million. 4,433,333 new warrants were issued, exercisable into common shares at $0.45, for a five-year period.
• Indiva announced an amended and increased debt facility with Sundial Growers Inc., providing the Company with an additional $8.5 million of debt. Proceeds were used to terminate and repay all remaining obligations under the Dycar manufacturing agreement.
• Indiva introduced Bhang THC White Candy Cane Chocolate in five provinces, which has experienced strong sell-in.
• Indiva launched Wana 10-pack Blood Orange 20:1, a new flavour for Wana Gummies in Canada, across six provinces and territories.
• Indiva fulfilled replenishment orders of bubble hash concentrate into the Province of Quebec, and delivered its first shipment of INDIVA Capsules to British Columbia.
• Indiva introduced new, high-potency, craft grown cultivars to the Canadian market, including Golden Pineapple by HWY 8 and Sour Glue by Purplefarm Genetics. The Company expects to introduce more exciting and unique cultivars from Canada’s best craft cultivators in the coming months.
• • Indiva received nominations for five Adcann Awards, including Craft Brand of The Year, LP Brand of the Year, Best Social Media of the Year, Brand Marketer of the Year and Marketing Campaign of the Year.
• • Pursuant to the press release issued by Canopy Growth (“Canopy”) on October 14th announcing the acquisition of an option to acquire Wana Brands, Indiva wishes to clarify that its exclusive rights to manufacture and distribute Wana Sour Gummies in Canada will remain in place until the earlier of May 2025, or the date upon which Wana terminates its agreement with Indiva following the exercise by Canopy of its option to acquire Wana, following federal legalization of cannabis in the United States. Indiva and Wana may continue their licensing agreement beyond May 2025, if both parties mutually agree. In the event that Canopy exercises its option prior to May 2025 and causes Wana to terminate the current agreement, Indiva would be contractually entitled to receive a termination payment equivalent to four times the most recent three months of gross revenue, net of license payments, from the sale of Wana products in Canada. Indiva remains committed to supporting the growth of the Wana brand in Canada.

Outlook

• The Company expects sequential and year-over-year net revenue growth, as well as continued margin improvement in the fourth quarter of 2021, as a result of new SKU and product introductions, and improved operating efficiencies.
• In Q4 2021 and Q1 2022, Indiva will launch several new SKUs including new Wana gummie and Wana Quick SKUs, as well as chewable fruit tablets called “Jewels”. Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand. Artisan Batch brings Canadians the best dry flower from craft growers with special attention paid to high THC potency, robust terpene content, premium large buds and fresh harvest dates.

OPERATING AND FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

Operating Expenses

Quarterly Results

COVID-19

Government and private entities are still assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced health and safety protocols in place to protect its employees. The Company continues to assess the customer, supply chain, and staffing implications of COVID-19 and is committed to making continuous adjustments to minimize disruption and impact. Indiva will remain proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to protect Canadians.

CONFERENCE CALL

The Company will host a conference call to discuss its results on Tuesday, November 16, 2021 at 8:30am EST. Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID is 01162714.

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 162714#. The recording will remain available until Thursday December 23, 2021.

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, Slow Ride Bakery Cookies, Jewels Chewable Tablets, Ruby^® Cannabis Sugar, Sapphire Cannabis Salt, as well as capsules, pre-rolls and premium flower under the INDIVA 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

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 press release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
Certain statements contained in this press 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 release contains forward-looking information relating to the Company’s future operations, future product offerings and compliance with applicable regulations. 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 parties. The material factors and assumptions include the parties being able to maintain the necessary regulatory and other third parties’ approvals and licensing and other risks associated with regulated entities in the cannabis industry. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated 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 contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.

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

About Ryan Allway

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

BARRIE, Ontario, Nov. 15, 2021 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm” or the “Company”) a pharmaceutical company specialized in precision-based cannabinoids today announced its financial results for the three and nine months ended September 30, 2021, a period of transition in establishing itself as an international pharmaceutical company specializing in cannabis.

Q3 2021 Key Highlights

• Received North America’s sole Drug Establishment Licence (“DEL”) amongst cannabis companies, which will allow MediPharm to conduct pharmaceutical manufacturing and sale of Active Pharmaceutical Ingredients and Finished Dose Goods containing cannabis. MediPharm’s current and future domestic Canadian cannabis partners will benefit from the DEL as MediPharm can now provide them a conduit to pharmaceutical and international markets. The DEL is a key enabler of the Company’s future successes.
• International sales increased 16.5% sequentially to $2.9 million and represented 53% of sales in Q3.
• Announced new CEO, Mr. Bryan Howcroft to drive international and pharmaceutical sales growth.
• Strong balance sheet position, with $38 million in cash and cash equivalents as at September 30, 2021.
• Succeeded in the Ontario Cannabis Store product call adding SKUs in oil and vape formats, particularly a high demand CBD vape product that contains only CBD and naturally derived terpenes. This CBD vape is more shelf stable versus current Canadian competitors.
• Achieved Major Pharmaceutical Milestone for global distribution, including in the U.S.
• New product development innovation for new areas of growth in CBN and other cannabinoids.

Q3 Overview

“In Q3 2021, we were awarded one of the most important licences in our Company’s history related to North American GMP certifications, the DEL. The DEL establishes the Company as a true pharmaceutical partner while continuing to deliver on our international medical cannabis sales,” said Keith Strachan, President, MediPharm. “We increased our international medical presence and sales by 16.5% q/q, which is a testament to our efforts to lead in this area. We view the international medical cannabis market to be a key driver of our future revenue growth. We also continue to innovate in new product development, with minor cannabinoids such as CBN, as well as our clinical trial program.”

“Looking ahead, efforts are well underway to ensure MediPharm maintains a leading position in the projected multibillion-dollar global cannabinoid-derived pharmaceuticals and international medical markets. This is where our unique licenses and professional expertise will make us the go-to partner for pharmaceutical companies around the globe with potential for material revenue growth for years to come.” To this end, we are delighted to welcome our new CEO to MediPharm, effective today, Mr. Bryan Howcroft. Mr. Howcroft’s deep expertise in navigating complex regulated international markets will enable MediPharm’s transition towards pharmaceutical and medical markets to reach new heights.

Balance Sheet Stability Supports Strategic Execution

• Cash and cash equivalents totaled $38 million at September 30, 2021 and the cash balance outstanding under the convertible notes was under $1.9 million. As of today, the balance outstanding under the convertible notes is only $0.5 million. This strong cash balance is sufficient to support the Company’s long-term growth strategy.

Financial Results Summary Table

(1) Adjusted Gross Profit is a non-IFRS measure. See Non-IFRS Measures section of this news release.

(2) Adjusted EBITDA is a non-IFRS measure. See Non-IFRS Measures section of this news release.

Q3 2021 FINANCIAL RESULTS CONFERENCE CALL

MediPharm executive management team will host a conference call and audio webcast to discuss the results and outlook for the three and nine month period ended September 30, 2021 on Monday, November 15, 2021, at 8:30 a.m. eastern time.

Audio Conference Call Dial in Details:

NON-IFRS MEASURES

Adjusted EBITDA and adjusted Gross Profit are not recognized performance measures under IFRS, do not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA and adjusted Gross Profit are included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are non-recurring. Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization expense, interest income and expense, finance fees, gain in revaluation of derivative liabilities, taxes, impairment losses on inventory, write down of deposits and share-based compensation. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, taxes, share-based compensation and transaction fees. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). The above is a reconciliation of the Company’s operating loss to Adjusted EBITDA. See “Reconciliation of non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the period ended September 30, 2021 for additional information. Adjusted gross profit is defined as gross profit/(loss) excluding the adjustments for accelerated depreciation, write down of non-current deposits and write down of inventory. Adjusted gross profit is a useful measure as it represents gross profit for management purposes based on costs to manufacture, package and ship inventory sold, exclusive of any impairments due to changes in internal or external influences.

About MediPharm

Founded in 2015, MediPharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and completed commercialization of its Australian extraction facility which generated its first revenues in H1 2020. MediPharm Labs Australia was established in 2017.

In 2021, MediPharm Labs received a Pharmaceutical Drug Establishment Licence from Health Canada, becoming the only company in North America to hold a domestic Good Manufacturing License for the extraction of natural cannabinoids.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding: the Company establishing itself as an international pharmaceutical company; a leading position in the projected multibillion-dollar global cannabis pharmaceutical market; becoming the go-to partner for pharmaceutical companies around the globe; potential for material revenue growth for years to come; and the Company’s transition towards pharmaceutical and medical markets reaching new heights. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm’s filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

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.

WINNIPEG, Manitoba, Nov. 15, 2021 (GLOBE NEWSWIRE) — DELTA 9 CANNABIS INC. (TSX: DN) (OTCQX: DLTNF) (“Delta 9” or the “Company”), is pleased to announce financial and operating results for the three-month and nine-month period ending September 30, 2021.

Financial Highlights for the three-month period ending September 30, 2021

• Net revenue of $15.2 million for the third quarter of 2021, an increase of 16%, from $13.1 million for the same quarter last year.
• Gross profit of $4.8 million for the third quarter of 2021, an increase of 55%, from $3.1 million for the same quarter last year.
• Net loss from operations of $(55,031) for the third quarter of 2021 versus a loss from operations of $(4,578,729) for the same quarter last year.
• Adjusted EBITDA of $191,056 for the third quarter of 2021 versus an adjusted EBITDA of $210,756 million for the same quarter last year.

Financial Highlights for the nine-month period ending September 30, 2021

• Net revenue of $45.2 million for the first nine months of 2021, an increase of 19%, from $37.9 million for the same period last year.
• Gross profit of $13.4 million for the first nine months of 2021, an increase of 16%, from $11.6 million for the same period last year.
• Net loss from operations of $(4.1) million for the first nine months of 2021 versus a net income loss from operations of $(2.7) million for the same period last year.
• Adjusted EBITDA of $1.4 million for the first nine months of 2021 versus an adjusted EBITDA of $1.4 million for the same period last year.

“We were pleased to be recognized by the Globe and Mail’s annual survey as the 7th fastest growing company in Canada with a three-year revenue growth rate of 5,413%. Delta 9’s annual revenues have grown from less than $1 Million in 2017 to over $52 Million in 2020, and we continue to see growth trending in 2021,” said John Arbuthnot, CEO. “In the third quarter of 2021 we have seen a degree of seasonality and timing issues relating to provincial government’s purchasing patterns affecting our wholesale business and impacting sequential revenue growth. We remain bullish that the remainder of 2021 looks to outperform last year’s results.”

3^nd Quarter and Subsequent Operational Highlights

• Delta 9 renewed its normal course issuer bid (NCIB). Under the NCIB, the Company can purchase: (i) up to an aggregate of 6,827,032 common shares of the public float; and (ii) up to an aggregate of $1,180,000 principal amount of 8.5% unsecured convertible debentures of the Company. The Company sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares and Debentures may not fully reflect the value of the Common Shares and Debentures. The Company believes that, in such circumstances, the purchase of Common Shares and Debentures represents an accretive use of capital.

• Delta 9 placed 7th on the 2021 Globe and Mail’s Report on Business ranking of Canada’s Top Growing Companies. Delta 9 Cannabis earned its spot with a three-year revenue growth rate of 5,413% with revenues growing from under $1 million in 2017 to $52 million in 2020. The editorial ranking aims to celebrate entrepreneurial achievement in Canada by identifying and amplifying the success of growth-minded, independent businesses in Canada.

• Delta 9 opened four cannabis retail stores this quarter with two in Edmonton, Alberta, and two in Manitoba, (Winnipeg and Selkirk). Delta 9 now has 16 operating cannabis retail stores with eleven in Manitoba, four in Alberta and one in Saskatchewan. Delta 9 continues to make progress on its goal of having 20 stores open in the near term. Delta 9 will accomplish this through select strategic acquisition targets and a focus on retail store build-outs at convenient and high traffic shopping locations. This growth strategy has been a successful part of the Company’s overall vertical integration strategy.

• Delta 9 entered into a partnership with Cultivatd to compliment the Company’s B2B sales team by helping to target Grow Pod sales opportunities in Canada and the United States. Cultivatd is an indoor farming technology broker that connects people and businesses with the proper vertical farming technology for their needs. Cultivatd currently has $200 million of quotes in the pipeline with prospective clients in Canada, the United States and Australia.

Summary of Quarterly Results:

A comprehensive discussion of Delta 9’s financial position and results of operations is provided in the Company’s Management Discussion & Analysis for the three-month and nine-month period ending September 30, 2021 filed on SEDAR on November 15, 2021 and can be found at www.sedar.com.

2021 Third Quarter Results Conference Call

A conference call to discuss the above results is scheduled for November 15, 2021, pre-market. The conference call will be hosted that day at 9:00 a.m. Eastern Time by John Arbuthnot, Chief Executive Officer, and Jim Lawson, Chief Financial Officer, followed by a question-and-answer period.

For more information contact:

Investor & Media Contact:
Ian Chadsey VP Corporate Affairs
Mobile: 204-898-7722
E-mail: [email protected]

About Delta 9 Cannabis Inc.

Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9’s shares trade on the Toronto Stock Exchange under the symbol “DN” and on the OTCQX under the symbol “DLTNF”. For more information, please visit www.delta9.ca.

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company’s future business plans and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: (i) the Company’s plans to establish a chain of cannabis retail stores across Canada; and (ii) the anticipated production capacity of the Company’s planned cannabis processing center. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including all risk factors set forth in the annual information form of Delta 9 dated March 31, 2021 which has been filed on SEDAR. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

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

About Ryan Allway

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

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Highlights recent investments in Electric Vehicles, Cannabis, Tele-health & Innovative Sports Businesses with near term monetization and liquidity events forthcoming

NEW YORK, Nov. 11, 2021 /PRNewswire/ — AIkido Pharma Inc. (Nasdaq: AIKI) (“AIkido” or the “Company”) today announced its third quarter ending September 30, 2021, financial highlights and provided a corporate update.

Highlights

• Cash and investments exceeding $104 million reflecting very low cash burn over Q2
• Monetization and liquidity event in DatChat representing over 600% ROI
• Investment in Tevva Motors electric truck producer, a space with recent Rivian Automotive IPO, ticker symbol RIVN.
• Investment in Kerna Health, fast growth tele-health business with recurring revenue and large contract backlog with possible liquidity event in 2022
• New investment in Slinger Bag, displaying strong progress and potential near-term monetization
• New investment in Kaya Holdings, first U.S. publicly traded company to hold and operate state-issued “touch-the-plant” licenses for the retail, cultivation, and production of cannabis

Anthony Hayes, CEO of AIkido, noted, “We are excited about our current pipeline portfolio, upcoming milestones and pending catalysts. This past quarter showcased our monetization strategy exemplified by a 600% ROI liquidity event in DatChat which went public over the summer. Additionally, we actively invested in several exciting high growth industries such as Electric Vehicles and Tele-health and we continue to actively pursue additional high growth interests with near term monetization events to help enhance shareholder value. We are pleased to also announce today our recent investments in the Cannabis and innovative sports industries that have strong growth potential. We are also working diligently to grow our drug platform through additional licensing efforts and are currently working on partnerships with academic institutions and private enterprise to find, fund and advance new drug compounds that can be brought to commercialization. We continue to maintain an extremely low cash burn and note that our valuation does not currently reflect the value of our assets. With our strong balance sheet, we have pulled our registration statement and we look forward to continued shareholder value creation.”

Third Quarter Highlights

DatChat
On August 17, 2021, DatChat closed its initial public offering at an initial offering price to the public of $4.15 per share under the ticker DATS. On September 22, 2021, the Company sold 167,084 shares of DatChat common stock for net proceeds of approximately $0.9 million. As of September 30, 2021, the Company continued to hold 357,916 shares of DatChat valued at approximately $4.9 million.

Tevva Motors
On September 22, 2021, the Company agreed to purchase 29,004 Interests of Tevva Motors for approximately $1.0 million. Subsequently, on September 30, 2021, the Company entered into a second securities purchase agreement to purchase an additional 29,004 Interests of Tevva Motors for approximately $1.0 million. Tevva Motors Ltd is a UK-based, leading developer of modular electrification systems for medium duty commercial vehicles. This is an exciting space, with companies such as Rivian Automotive recently going public with very high valuations.

Kerna Health,
On September 15, 2021, the Company entered into a securities purchase agreement with Kerna Health Inc. Under Agreement, the Company agreed to purchase 1,333,334 shares of common stock of Kerna for $1.0 million. Kerna health is a fast-growing tele-health business with recurring revenue and large contract backlog and has the potential to lead to a liquidity event in 2022.

Slinger Bag
On August 6, 2021, the Company entered into a securities purchase agreement with Slinger Bag Inc. Under the Agreement, the Company agreed to pay $1.4 million to Slinger Bag for the issuance of a convertible promissory note in the principal amount of $1.4 million and a common stock purchase warrant. Slinger Bag which is currently listed on the OTC market under symbol SLBG, is a fast-growing leading connected sports company focused on delivering innovative, game improvement technologies and equipment across tennis and other ball sports.

Kaya Holding Corp
On September 29, 2021, the Company entered into a securities purchase agreement with Kaya Holding Corp. Under the Agreement, the Company agreed to purchase 8,325,000 shares of common stock of Kaya for approximately $0.7 million. Kaya Holding Corp is currently listed on the OTC market under the symbol KAYS and is the first U.S. publicly traded company to hold and operate state-issued “touch-the-plant” licenses for the retail, cultivation and production of cannabis.

Drug Development Pipeline Update
The Company’s pipeline consists of patented technology from leading universities and researchers and is currently in the process of developing its innovative therapeutic drug pipeline through strong partnerships with world renowned educational institutions, including the University of Texas at Austin, the University of Maryland, Baltimore and Wake Forest University.

• The Company is also developing a broad-spectrum antiviral platform, in which the lead compounds have activity in cell-based assays against multiple viruses including Influenza virus, Ebolavirus and Marburg virus, SARS-CoV, MERS-CoV, and SARS-CoV-2, the cause of COVID-19.

Convergent Therapeutics
In January 2021, the Company invested in Convergent Therapeutics, which has exclusive rights to technology related to next-generation dual-action peptide receptor radionuclide therapy (“PRRT”) for prostate cancer covered by multiple issued U.S. and foreign patents. Convergent is currently conducting advanced human trials relating to prostate cancer treatments utilizing PRRT that targets the prostate-specific membrane antigen (“PSMA”) present on prostate cancer cells. The technology was developed under the direction of Dr. Neil Bander, Professor of Urologic Oncology at Weill Cornell Medicine.

Silo Pharma
In January 2021, the Company entered into an exclusive patent license agreement with Silo Pharma where Silo Pharma granted the Company a worldwide exclusive, sublicensable, royalty-bearing license to certain Silo Pharma owned provisional patent applications directed to the use of psilocybin in cancer treatment. The license is for “Field of Use” of “treatment of cancer and symptoms caused by cancer, including but not limited to pain, nausea, neuroinflammation, brain and neural dysfunction, depression, seizures, confusion, dizziness, numbness/tingling, dysfunction of the senses and all other symptoms that are caused by cancer of any type.”

About AIkido Pharma Inc.

AIkido Pharma Inc. was initially formed in 1967 and is a biotechnology Company with a diverse portfolio of small-molecule anti-cancer therapeutics. The Company’s platform consists of patented technology from leading universities and researchers, and we are currently in the process of developing an innovative therapeutic drug platform through strong partnerships with world renowned educational institutions, including The University of Texas at Austin and University of Maryland at Baltimore. Our diverse pipeline of therapeutics includes therapies for pancreatic cancer and prostate cancer. We are constantly seeking to grow our pipeline to treat unmet medical needs in oncology. The Company is also developing a broad-spectrum antiviral platform that may potentially inhibit replication of multiple viruses including Influenza virus, SARS-CoV (coronavirus), MERS-CoV, Ebolavirus and Marburg virus.

Forward-Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company’s filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Investor Relations:

Hayden IR
Brett Maas, Managing Partner
Phone: (646) 536-7331
Email: [email protected]
www.haydenir.com

AIkido Pharma Inc.
Phone: 212-745-1373
Email: [email protected]
www.aikidopharma.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.

• $9.6 million net revenue with an improved sales mix focused on the high-growth adult-use and recurring medical cannabis sales channels
• 2,044% y/y increase in adult-use cannabis net revenue
• 31% y/y increase in medical cannabis net revenue
• Top 10 in national market share in pre-rolls achieved subsequent to the reporting period¹
• Top 10 in national adult-use market share in edibles and oils categories¹
• Outdoor harvest produced average yield on THC-dominant dried flower of 22%
• SG&A expenses declined 24% over the previous quarter
• Strengthened product portfolio with a total of 35 and 46 SKUs listed in Ontario and Alberta respectively by January 2022

TORONTO, Nov. 11, 2021 (GLOBE NEWSWIRE) — Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to report its financial results for the three and nine months ended September 30^th, 2021. The Company’s 2021 third quarter unaudited, consolidated financial statements and management discussion and analysis will be available in the Investors section of the Company’s website at aleafiahealth.com and will be filed on SEDAR and available at sedar.com.

“Our momentum in the adult-use cannabis sector has continued with our strongest quarter to date by a significant margin,” said Aleafia Health CEO Geoffrey Benic. “Consumer demand for our portfolio has been clearly demonstrated as we now begin to capture meaningful market share, entering the top 10 nationally in the pre-roll, edible, and oils categories. Most importantly, we’ve realized a five-fold sequential increase in dried flower market share during the quarter, in a category that is both Canada’s largest and one that leverages our low-cost cultivation advantage.

“The outdoor cultivation harvest, our third to date, has yielded a material improvement in potency, providing us with a high-quality THC-dominant dried flower for use in our milled and pre-roll product formats. This is expected to significantly improve our available supply of top-selling SKUs, which consistently sell-out in adult-use markets. In 2020, we undertook capital improvements to the outdoor facility while running a cultivar R&D testing program, which has resulted in new, high-potency strains that will enter our portfolio and provide strong momentum heading into the new year.

“Like many of our peers, we have enacted an impairment of goodwill and intangible assets which while negatively affecting net income, are a non-cash expense. We have also undertaken cost review initiatives which have resulted in a sequential decline in SG&A expenses, and we expect will result in additional cost savings in the near term.”

OPERATIONAL HIGHLIGHTS

• Net cannabis revenue was $9.5 million for the three months ended September 30, 2021 (“Q3 2021”), an increase of 123% over the prior year’s quarter. This was primarily due to an increase in the sale of cannabis in the adult-use and medical cannabis sales channels.
• Net adult-use cannabis revenue during the three months ended September 30, 2021 was $5.0 million, an increase of 57% over the previous quarter and 2,044% over the prior year’s quarter. The sequential increase was primarily due to greater product availability and the launch of new product formats and SKUs. Specifically, this was driven by increased sales of dried flower and pre-roll products, which make up the largest and third largest adult-use product categories in the Canadian market.
  • Adjusted gross margin in the adult-use cannabis segment before FV adjustments was 28%, compared to 21% in the prior year’s quarter. The sequential decline in gross margin percentage was primarily due to the increase in sales of value priced pre-rolls, which contribute a lower gross margin.
• Medical cannabis net revenue for Q3 2021 was $2.5 million, a 23% decrease over the previous quarter and a 31% increase over the prior year’s quarter. The sequential decline was due to seasonally lower prescriptions written and filled during the summer months and a decline in international medical cannabis sales during the quarter.
  • Adjusted gross margin in the medical cannabis segment was 47%, compared to 26% in the prior year’s quarter. The improvement was due to optimizations and economies of scale in the production of cannabis products, and from lower costs of input material due to the ramp-up of production at the Niagara Greenhouse and Port Perry outdoor cultivation facilities.
• Net bulk wholesale revenue received from sales to cannabis licensed producers, as defined in the Cannabis Act was $1.9 million, compared to $3.1 million and $2.1 million in the previous and prior year’s quarters, respectively.
  • The negative gross margin in the bulk wholesale segment during Q3 2021 of 169% is attributable to the Company recording of an inventory provision for slow moving inventory of $2.4 million expensed to cost of sales, and the opportunistic sale of aged CBD distillate, due to a greater focus by the Company on THC dominant SKUs.

PRODUCT LAUNCHES & KEY DEVELOPMENTS

Throughout the reporting period, the Company undertook an expansion of its cannabis brand and product portfolio, including differentiated formats and new SKUs in the important value flower and pre-roll categories.

High Potency Outdoor Cultivation: Subsequent to the reporting period, the Company completed the harvesting of its 2021 outdoor cannabis facility in Port Perry. Testing and weighing of CBD-dominant and CBD/THC balanced cultivars, which represent the vast majority of the total weight harvested, remains underway, and are not reflected in the results below.

Cannabinoid testing results of THC dominant dried flower indicate a significant improvement in potency and total kilograms harvested that can be made available to sell in the adult-use market in pre-roll and milled formats. A total of 11,600 kgs with an average THC potency of 22% will be allocated for sale in the adult-use market, primarily under Aleafia Health’s everyday cannabis brand Divvy. By contrast, in 2020, the Company harvested 7,200 kgs of THC dried flower, but only 7% of this harvest exceeded THC potency of 20%, a key threshold in the adult-use market. The material improvement in potency and yield is attributed to additional cultivars introduced in 2021, following R&D testing in 2020, along with improvements in site infrastructure.

Significant Increase in Dried Flower Market Share: The Company has undertaken an expansion of its dried flower portfolio, the largest product category in the Canadian cannabis market, with new large format SKUs and additional cultivars launched during the reporting period. Strong demand for the Company’s everyday cannabis brand Divvy resulted in an 81-basis point (BPS) increase in national adult-use market share¹ over Q2 2021.

Divvy Line Extensions: Following a successful launch of Divvy earlier in 2021, the Company has recently added to the brand portfolio, with additional large format milled and dried flower SKUs. These products lean on Aleafia Health’s low-cost outdoor and greenhouse cultivation advantage with low-cost input material allowing for competitive pricing while protecting gross margins. Additionally, the Company has also recently launched oils under the Divvy banner, which will be available in adult-use markets in Q4 2021.

Top 10 Market Share in Pre-Rolls: Buoyed by continued growth during Q3 2021 in the pre-roll category, the Company sequentially doubled national market share following the launch of larger format SKUs in the value segment under the Divvy brand. Since the close of the reporting period, the Company has entered the top 10 in national market share¹ in the category, estimated to be Canada’s third largest.

Top 10 Market Share in Edibles: Through the strength of its Kin Slips sublingual strips² brand and additional Bogart’s Kitchen confectionary edibles SKUs, the Company has maintained top 10 national market share¹ in the edibles category.

Launch of Premium Brand Nith & Grand: Featuring hang dried, hand trimmed, small batch dried flower, and premium concentrates, Nith & Grand appeals to experienced cannabis aficionados. The initial launch features TF Pink Kush Live Resin vape cartridges, which comprises a hydrocarbon extraction process utilizing fresh-frozen cannabis flower that preserves the strain’s natural flavour, aroma and terpene profile.

NET INCOME & ADJUSTED EBITDA

• Net loss for the three months ended September 30, 2021 was $82.9 million compared to a net loss of $19.8 million over the prior year’s quarter. The increase in net loss over the prior year’s quarter is primarily due non-cash items including a $53.1 million impairment of intangible assets and a $11.3 million impairment of goodwill.
• During Q3 2021, wages & benefits, and selling & administrative expenses were $7.0 million, a decline of 24% over the previous quarter. This follows cost review initiatives undertaken during the reporting period which remain ongoing.
• Adjusted EBITDA for the three months ended September 30, 2021 was a loss of $7.6 million, compared to a loss of $5.2 million in the prior year’s quarter. The decline over the prior year’s quarter was primarily due to an increase in cost of sales, which relates to the one-time sale of aged inventory in the bulk wholesale channel.

SELECTED BALANCE SHEET INFORMATION

CONFERENCE CALL & WEBCAST

Date:   November 11, 2021
Time:   9:30 a.m. ET
USA/Canada Toll-Free Participant Call-in: (866) 679-9046; Passcode: 5588397
International Toll-Free Participant Call-in: (409) 217-8323; Passcode: 5588397
WEBCAST LINK

This conference call will be webcast live over the internet and can be accessed through the link provided. Audio of the call will be available to participants through both the conference call line and webcast; however, the presentation may only be viewed via the webcast. Participants who miss the live call can view a replay at any time via the link provided.

1. According to retail sell-through data from Hifyre, inclusive of Ontario, Alberta, BC and Saskatchewan.
2. Hifyre data classifies Kin Slips in the edibles product category.

CAUTIONARY STATEMENT REGARDING NON-IFRS MEASURES

This press release contains non-IFRS financial performance measures which the Company believes provides users with relevant information regarding operation performance. These measures are not recognized or defined under IFRS, and as a result, they may not be comparable to the data presented by competitors. For term definitions and reconciliation to IFRS equivalent, please see the associated Q3 2021 MD&A.

For Investor & Media Relations:

Nicholas Bergamini, VP Investor Relations
1-833-879-2533
[email protected]
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada. The Company has developed an international footprint, with subsidiaries or investments in German and Australian medical cannabis companies and has products available in both markets. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners who have seen over 75,000 patients to date.

Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the medical and adult-use markets, and in select international jurisdictions.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, 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 involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

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.

SCOTTSDALE, Ariz., November 10, 2021–(BUSINESS WIRE)–Zoned Properties®, Inc. (the “Company” or “Zoned Properties”) (OTCQB: ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced its financial results for the three and nine months ended September 30, 2021.

Third Quarter 2021 & Nine Months Ended September 30, 2021 Financial Results

• Revenue increased 28% to $387,365 for the third quarter of 2021, compared to $302,772 for the third quarter of 2020. This increase in revenues was primarily attributable to an increase in rent revenues from the Significant Tenants of $29,780 and an increase in brokerage revenues of $69,500, offset by a decrease in advisory revenues of $14,687.
• Operating expenses increased 77.0% to $440,816 for the third quarter of 2021, compared to $249,021 for the third quarter of 2020, an increase primarily due to the payment of brokerage commission splits of $42,500 on brokerage revenues and increases in compensation and benefits and consulting fees.
• For the nine months ended September 30, 2021, revenue increased 41.6%, while operating expenses only increased 36.7% as compared to the nine months ended September 30, 2020.
• Loss from operations amounted to $(53,451) for the third quarter of 2021, compared to income from operations of $53,751 for the third quarter of 2020, a decrease of $107,202.
• Income from operations amounted to $42,834 for the nine months ended September 30, 2021, compared to a loss from operations of $(3,198) for the nine months ended September 30, 2020, a positive change of $46,032.
• Net loss was $(95,495), or $(0.01) per basic share and diluted share, for the third quarter of 2021, compared to net income of $25,089, or $0.00 per basic and diluted share, for the third quarter of 2020.
• For the nine months ended September 30, 2021, net cash provided by operating activities was $387,999, compared to $48,470 for the nine months ended September 30, 2020.
• As of September 30, 2021, Zoned Properties had cash of $1,090,682, compared to $699,335 as of December 31, 2020.

Third Quarter 2021 & Nine Months Ended September 30, 2021 Company Highlights

• Zoned Properties Leadership Team: The Company has been successfully expanding its team of national real estate professionals for regulated industries. In the third quarter of 2021, Zoned Properties appointed Berekk Blackwell as Chief Operating Officer, Patrick Moroney as Director of Real Estate, and Joseph Lewis as Designated Broker. Zoned Properties has been recruiting a team of Senior Advisors and Project Managers with national cannabis and real estate expertise, as well.

• Zoned Properties Services Verticals: The Company’s expanding leadership team is continuing to scale the Company’s commercial real estate service verticals: Advisory Services, Brokerage Services, Franchise Services, and Property Technology (“PropTech”) Services.
  • Zoned Properties Advisory Services: The Company has been expanding its team of Senior Advisors specializing in emerging and regulated industries, primarily focused on the national cannabis industry. The Company has been shifting its client engagement model away from smaller, one-time engagements, and moving to engagements as the client’s outsourced real estate brain trust synced for longer-term client relationships. The team anticipates a successful transition to this updated advisory structure, which should be positively reflected in upcoming quarters.
  • Zoned Properties Brokerage Services: Our Brokerage Team is currently engaged with national cannabis organizations, national buyers, investors, and exclusive client listings with over $500,000 in commission potential across dozens of commercial real estate projects. Our Brokerage Team anticipates revenue from these potential commissions to be realized in the coming quarters.
  • Zoned Properties Franchise Services: Zoned Properties and national cannabis retail franchisor, Open Dør Dispensaries, are in the process of vetting operational partners from across the country to target a number of existing and new state markets. As the commercial real estate partner, Zoned Properties will benefit both directly and indirectly from the relationship. As an investor, the Company will receive a percentage of initial franchise fees and renewal fees, and as a partner the Company is positioned to provide commercial real estate investments for prospective franchise locations. Zoned Properties also has the opportunity to convert its existing debt investment for up to a 33% equity stake in the franchisor organization.
  • Zoned Properties PropTech Services: Property Technology platform solutions have the opportunity for national scale and service to regulated markets such as cannabis. Over the past year, Zoned Properties and Zoneomics have teamed up to solve one of the biggest challenges in cannabis real estate: how to identify appropriately zoned properties that can be permitted for cannabis operations. In the coming weeks, the project team will be formally introducing our platform to the marketplace. Under the brand, “Rezone”, the PropTech platform has the opportunity to democratize commercial real estate intelligence, providing hundreds of thousands of service professionals and business operators with the information they need to successfully develop regulated real estate projects.

• Zoned Properties Property Portfolio: Over $8,000,000 of capital has been invested to-date by the Company’s Significant Tenant at the Chino Valley Cultivation Facility.
  • The Company’s Significant Tenant will maintain the master rights to the property and facilities through the remainder of the Lease Agreement. Effective September 1, 2021, operational square footage increased from 40,000 square feet to 67,512 square feet, and the new base rental payments at the facility increased 68% from $32,800 per month to $55,195 per month including three out of four new building structures in the phase one expansion that became fully completed and operational.
  • The fourth additional building site is in completion stages for technology and operational packages along with compliance inspections. The parties expect that, upon final completion, they will enter into another lease amendment reflecting the increased operational square footage and increased base rental payments. Operational square footage would increase from 67,512 square feet to 97,512 square feet, and base rental payments at the facility would increase an additional 69% from $55,195 per month to $79,795 per month reflecting the entirety of the phase one expansion.
  • Upon completion of the entirety of the phase one expansion, the annualized base rental payments will increase to $957,550 reflecting an increase of 143% from previous annualized base rental payments of $393,600.
  • The Chino Valley property also includes an approved master plan for a phase two expansion of operational and rentable square footage that is construction ready and may proceed at the Tenant’s election. If the Tenant elects to proceed with phase two, the additional square footage of operational and rentable building space could include another 60,000 square feet for a total of 157,512 square feet of operational and rentable building space at the facility, which would equate to an annualized rental rate of $1,549,918 plus additional rental payments under the triple-net lease.

“Our value proposition and business thesis at Zoned Properties, which is centrally focused on real estate development in the regulated cannabis space, has never been stronger. We continue to strengthen our team of subject-matter experts who know how to navigate the complexity of cannabis real estate and deliver tangible value for our company and our clients across the county,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “We have successfully positioned the Company with a debt-free, cash-flowing portfolio of expanding properties that can support innovative and scalable growth for the future of the Company. One of the final puzzle pieces that will shape the future of Zoned Properties will be confirming long-term capital partners who understand our mission, vision, and capital opportunities we’ve spent years creating to build value for investors, shareholders, and stakeholders.”

About Zoned Properties, Inc. (OTCQB: ZDPY):

Zoned Properties is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.

Headquartered in Scottsdale, Arizona, Zoned Properties has developed a full spectrum of integrated growth services to support its real estate development and investment model; Advisory Services, Brokerage Services, Franchise Services, and PropTech Data Services each cross-pollinate within the model to drive project value associated with complex real estate projects. With national experience and a team of experts devoted to the emerging cannabis industry, Zoned Properties is addressing the specific needs of a modern market in highly regulated industries.

Zoned Properties is an accredited member of the Better Business Bureau, the U.S. Green Building Council, and the Forbes Real Estate Council. Zoned Properties does not grow, harvest, sell or distribute cannabis or any substances regulated under United States law such as the Controlled Substance Act of 1970, as amended (the “CSA”). Zoned Properties corporate headquarters are located at 14269 N. 87th Street, Suite 205, Scottsdale, Arizona. For more information, call 877-360-8839 or visit www.ZonedProperties.com.

Twitter: @ZonedProperties
LinkedIn: @ZonedProperties

Safe Harbor Statement

This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

COVID-19 Statement

In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. We are monitoring this closely, and although operations have not been materially affected by the COVID-19 outbreak to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is uncertain. Currently, all of the properties in our portfolio are open to our Significant Tenants pursuant to state and local government requirements. We did not experience in 2020, and to date have not experienced in 2021, any material changes to our operations from COVID-19. We do not anticipate any such material changes for the remainder of 2021. Our tenants are continuing to generate revenue at these properties and they have continued to make rental payments in full and on time and we believe the tenants’ liquidity position is sufficient to cover its expected rental obligations. Accordingly, while we do not anticipate an impact on our operations, we cannot estimate the duration of the pandemic and potential impact on our business if the properties must close or if the tenants are otherwise unable or unwilling to make rental payments. In addition, a severe or prolonged economic downturn could result in a variety of risks to our business, including weakened demand for our properties and a decreased ability to raise additional capital when needed on acceptable terms, if at all. At this time, the Company is unable to estimate the impact of this event on its operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110005852/en/

Contacts

Media Relations
Proven Media
Neko Catanzaro
Tel (401) 484-4980
[email protected]

Investor Relations
Zoned Properties, Inc.
Bryan McLaren
Tel (877) 360-8839
[email protected]
www.zonedproperties.com

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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.