The Company has also signed an LOI with Berlin-based health and life science company Sanity Group to better take advantage of potential German adult-use cannabis legalization

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated December 3, 2021, to its short form base shelf prospectus dated April 22, 2021.

• Current annual revenue run rate exceeds $450 million, maintaining High Tide’s position as Canada’s top revenue-generating cannabis company¹
• The Company celebrated its 11th consecutive quarter of positive adjusted EBITDA²
• The Company now counts approximately 4.5 million total customers globally across all platforms³
• The Company’s bricks-and-mortar locations generated same store sales growth of 50% year-over-year and 9% sequentially in the fourth fiscal quarter of 2022
• Largest non-franchised retailer in Canada with 151 locations and approximately 950,000 Cabana Club members, making it the largest bricks-and-mortar cannabis loyalty program in Canada
• Paid ELITE membership upgrades already exceed 6,000 members since launching this first-of-its-kind initiative in Canada at the end of November 2022

Calgary, AB, January 30, 2023 / CNW / − High Tide Inc. (“High Tide” or the “Company”) (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, filed its year-end audited 2022 financial results on January 30, 2023, the highlights of which are included in this news release. The full set of audited consolidated financial statements for the fiscal years ended October 31, 2022, and 2021 (the “Financial Statements”) and accompanying management’s discussion and analysis can be accessed by visiting High Tide’s website at https://www.hightideinc.com/www.hightideinc.com, and its profile pages on SEDAR at http://www.sedar.com/www.sedar.com, and EDGAR at http://www.sec.gov/www.sec.gov.

2022 Fiscal Year – Financial Highlights

• Revenue increased by 97% to $356.9 million for the year ended October 31, 2022, and increased sequentially by 14% to $108.2 million in the fourth quarter of 2022
• Gross profit increased by 58% to $101.0 million for the year ended October 31, 2022, and increased sequentially by 15% to $29.5 million in the fourth quarter of 2022
• Gross profit margin was 28% for the year ended October 31, 2022, and was 27% in the fourth quarter of 2022, which was consistent with each of the prior two quarters
• Salaries, wages and benefits represented 12% of revenue in the fourth fiscal quarter of 2022 which compared to 15% in the fourth fiscal quarter of 2021 and was consistent with the prior quarter. General and administration expenses represented 7% of revenue in the fourth fiscal quarter of 2022, which compared to 8% in the fourth fiscal quarter of 2021 and was consistent with the prior quarter
• Adjusted EBITDA⁴ was a record $14.6 million for the year ended October 31, 2022, up 17% versus the prior year, and was $5.0 million for the fourth quarter of 2022, up 18% sequentially, and up 206% versus the fourth quarter of 2021
• Geographically, for the year ended October 31, 2022, $290.4 million of revenue was earned in Canada (an increase of 93%), $59.3 million in the United States (an increase of 100%), and $7.1 million internationally (an increase of 671%). In the fourth quarter of fiscal 2022, revenue was $93.9 million in Canada (an increase of 16% sequentially), $13.2 million in the United States (an increase of 4% sequentially), and $1.2 million internationally (a decrease of 37% sequentially). This decrease is related to a global slowdown in sales of CBD products
• Cabanalytics data sales from the entire retail ecosystem, including bricks and mortar and e-commerce platforms, were $21.7 million for the fiscal year that ended October 31, 2022, compared to $12.2 million for the fiscal year ended October 31, 2021. Sequentially, Cabanalytics data sales increased to $6.4 million from $5.5 million in the third fiscal quarter
• The Company’s bricks-and-mortar locations generated same-store sales growth of 50% year-over-year and 9% sequentially in the fourth fiscal quarter of 2022. Given the success of our innovative discount club model, as well as the optional membership upgrade to ELITE, the Company anticipates same-store sales to continue to be strong compared to the industry average in the first fiscal quarter of 2023
• During the fourth fiscal quarter of 2022, the Company completed its annual impairment testing. As a result of this testing, driven primarily by a slowdown in the global CBD sector as seen amongst our major United States CBD competitors, the Company recorded impairment charges of $48.6 million, primarily relating to goodwill. The Company notes that these are non-cash charges, with no impact on its ability to raise debt capital from its senior lender, and that online CBD sales represented only 6% of consolidated revenue for the fourth fiscal quarter of 2022
• Cash on hand as of October 31, 2022, totalled $25.1 million, compared to $14.0 million as of October 31, 2021

“I am thrilled to share these results, which, once again, deliver record-breaking revenue and adjusted EBITDA which further solidifies High Tide’s position as the largest revenue-generating cannabis company in Canada with a current annual run rate of over $450 million. While these numbers demonstrate exponential revenue growth, it’s also important to note that we have maintained adjusted EBITDA level profitability for 11 consecutive quarters and that we were cash flow positive from operations during the last fiscal year. In our opinion, this is because we have the strongest retail concept in Canadian cannabis, something that is backed up by the fact that our Cabana Club loyalty program now has approximately 950,000 members across 151 Canadian stores. I am also excited to report that we have already upgraded over 6,000 members into ELITE. As we continue to introduce more ELITE offerings, we anticipate upgrades to continue throughout 2023, providing us with an additional high-margin recurring revenue stream to further boost our bottom line.

On top of all this, our same-store sales increased by 50 percent year-over-year, something that is an anomaly amongst North American cannabis companies. Our bricks-and-mortar margins have slowly but steadily ticked higher over the last two quarters, and we expect this to continue, which will help amplify the impact of our anticipated same-store sales increases. Our growing customer loyalty and value-focused strategy have resulted in the rapid conversion of illicit market consumers and have helped to increase our market share by approximately 1% per quarter for the last four quarters. With these increases, Canna Cabana now serves roughly 13% of Canadian cannabis consumers outside of Quebec. We also continue to be a global player in the retail sale of consumption accessories through our world-leading e-commerce platforms and our Canadian bricks and mortar stores.” said Raj Grover, President and Chief Executive Officer of High Tide.

“Considering the challenging macro environment and where our equity value stands today, we have meaningfully slowed down our M&A activity and are primarily looking at smaller, highly accretive bricks-and-mortar opportunities to focus on free cash flow generation from our existing business lines. I want to sincerely thank our customers, team members, and shareholders for another stellar year as the retail market leader in Canada, and I look forward to delivering more of the same in 2023, with continued market share gains and further improved cash flow generation. I also want to acknowledge our industry and government partners who worked tirelessly to ensure that we, as an industry, continue to make progress toward greater sustainability within the cannabis sector.” added Mr. Grover.

Letter of Intent with Sanity Group

High Tide also announced that it has entered into a non-binding letter of intent (the “LOI”) with the Berlin-based health and life science company, Sanity Group (the “Sanity Transaction”). With big progress on legislation expected this spring, the LOI is designed to leverage synergies between both complementary companies and position each to take advantage of potential German adult use legalization within their respective supply chain verticals. With a well-established track record in Germany with respect to medical cannabis, finished pharmaceuticals, and cannabinoid-based consumer goods, High Tide believes that Sanity Group is the best-positioned potential partner in its home market of Germany.

Sanity Group and High Tide intend to work together on go-to-market strategies, identification of quality M&A opportunities, sourcing of high-quality real estate, expansion within European markets, and regulatory compliance topics such as licensing and government outreach. Subject to relevant laws and regulations, High Tide, aims to support Sanity Group in building a retail consumer brand strategy using its decade-long experience serving cannabis consumers in Canada, the United States and Europe, as well as providing targeted assistance in product display and advertising opportunities (product and brand promotion) across High Tide’s assets in Germany and other European markets in due course.

“We want to be well positioned to bring this success to the German market, should the government proceed with its publicly stated goal to legalize cannabis adult use. This is why we are proud to partner with a top player in the German medical cannabis space like Sanity Group, particularly since our business models are complementary in nature,” said Mr. Grover.

“We are very excited and proud to lay the foundation for a strong and trustful partnership in case of recreational cannabis legalization in Germany with a top player like High Tide through this letter of intent. High Tide stands for great experience and expertise in building retail cannabis brand strategies like no other player. We strongly believe in the mutual value of this partnership, added Finn Hänsel,” Chief Executive Officer of Sanity Group.

Fiscal Fourth Quarter 2022 – Operational Highlights

• The Company closed on its acquisition of assets from Choom Holdings Inc. through the Companies’ Creditors Arrangement Act Proceedings, adding 9 operating retail cannabis stores to the Company’s bricks-and-mortar portfolio across British Columbia, Alberta and Ontario for $5.3 million
• The Company entered into and closed a binding commitment letter with Connect First Credit Union Ltd. (“connectFirst”) for a $19 million credit facility with an initial 5-year term, at connectFirst’s floor interest rate
• The Globe and Mail’s Report on Business magazine recognized the Company for a second year in a row as one of Canada’s top-growing companies for 2022, ranking 21st out of 430 Canadian companies, with an audited growth rate of 1,970% over three years
• The Company entered into a definitive agreement to add two retail cannabis stores in British Columbia via the acquisition of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC
• The Company announced that its Colorado-based subsidiary, NuLeaf Naturals, launched its groundbreaking Full Spectrum Multi Cannabinoid oil and plant-based softgels for sale in Manitoba through the Manitoba Liquor & Lotteries Corporation and in Ontario through the Ontario Cannabis Store
• Membership in the Cabana Club loyalty program increased to over 827,000 members as of October 31,2022
• The Company added 13 new stores: 3 in British Columbia, 9 in Alberta and 1 in Ontario

Subsequent Events

• The Company was declared the highest revenue-generating cannabis company in Canada⁵
• The Company reached its communicated goal of 150 bricks-and-mortar stores across the country
• The Company launched ELITE, the first-of-its-kind cannabis paid membership loyalty program in Canada converting over 6,000 members to ELITE status and generating over $180,000 in high margin revenue
• The Company opened 10 new stores: 3 in British Columbia, 1 in Manitoba and 6 in Ontario
• The Company initially launched cannabis seed sales through its subsidiaries GrassCity and Smoke Cartel and has now commenced sales on its Daily High Club and Dankstop e-commerce platforms
• The Company completed the roll out of its proprietary Fastendr technology across 120 Canna Cabana locations
• The Company now sponsors 302 children internationally through World Vision, after having committed to sponsoring two additional children for every new store that opens in Canada
• Canna Cabana membership numbers as of today stands at approximately 950,000 members

Selected financial information for the fourth quarter and year ended October 31, 2022:

(Expressed in thousands of Canadian Dollars)

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

(Expressed in thousands of Canadian Dollars)

⁶ Loss from operations, excluding non-cash impairment charges was $5.3 million for the three months ended October 31, 2022 which compared to a loss of $2.1 million for the three months ended October 31, 2021. Excluding these charges, the Company generated a loss from operations of $23.6 million for the year ended October 31, 2022 which compares to a loss from operations of $15.9 million for the year ended October 31, 2021.

⁷ Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and therefore highlight trends in Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

Outlook:

High Tide is the market leader in Canadian bricks and mortar cannabis retail, with 151 locations across the country and a loyalty base of approximately 950,000 Cabana Club members. The Company’s target is to add 40-50 new retail locations in calendar 2023, with Ontario representing the lion’s share of the increase. At the end of November, The Company launched Cabana ELITE, its premium paid membership offering and has already onboarded over 6,000 members. The Company expects this number to steadily increase over the coming quarters.

With the continued increase in same-store sales and a wider retail footprint, High Tide is currently on an annual revenue run rate of over $450 million.

Throughout 2022, High Tide deployed its customized Fastendr technology in 120 locations across Canada, with this rollout continuing throughout 2023, including an opportunity to start licensing this technology towards the end of 2023.

Since mid-2022, High Tide has been launching white-label products through its Cabana Cannabis Co and NuLeaf Naturals brands in Ontario, Manitoba and Saskatchewan. The Company is actively rolling out more SKUs through the course of the year and in conjunction with other higher-margin revenue streams, such as the sale of cannabis seeds in the United States and ELITE membership fees, which should result in consolidated gross margins remaining steady and ticking higher in the quarters ahead.

Webcast and Conference Call

The Company will host a webcast and conference call to discuss its audited results and outlook at 11:30 AM (Eastern Time) tomorrow, Tuesday, January 31, 2023.

Webcast Link for High Tide Earnings Event:

https://events.q4inc.com/attendee/917199613

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

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

Participant Details

Joining by Telephone:

Canada dial-in number (Toll-Free):                1 833 950 0062

Canada dial-in number (Local):                      1 226 828 7575

United States:                                                 1 844 200 6205

United States (Local):                                     1 646 904 5544

All other locations:                                          +1 929 526 1599

Access code:                                                  817464

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

ATM Program Quarterly Update

Pursuant to the Company’s at-the-market equity offering program (the “ATM Program”) that allows the Company to issue up to $40 million (or the equivalent in U.S. dollars) of common shares (“Common Shares”) from treasury to the public from time to time, at the Company’s discretion and subject to regulatory requirements, as required pursuant to National Instrument 44-102 – Shelf Distributions and the policies of the TSX Venture Exchange (the “TSXV”), the Company announces that, during its fourth quarter ended October 31, 2022, the Company has issued an aggregate of 256,757 Common Shares over the TSXV and Nasdaq Capital Market (“Nasdaq”), for aggregate gross proceeds to the Company of $0.5 million.

Pursuant to an equity distribution agreement dated December 3, 2021, entered into among the Company, ATB Capital Markets Inc. and ATB Capital Markets USA Inc. (the “Agents”), associated with the ATM Program (the “Equity Distribution Agreement”), a cash commission of less than $0.01 million on the aggregate gross proceeds raised was paid to the Agents in connection with their services under the Equity Distribution Agreement during the fourth quarter ended October 31, 2022.

The Company intends to use the net proceeds of the ATM Program if any, and at the discretion of the Company, to fund strategic initiatives, it is currently developing, to support the growth and development of the Company’s existing operations, funding future acquisitions as well as working capital and general corporate purposes.

Common Shares issued pursuant to the ATM Program will be issued pursuant to a prospectus supplement dated December 3, 2021 (the “Canadian Prospectus Supplement”) to the Company’s final base shelf prospectus dated April 22, 2021, filed with the securities commissions or similar regulatory authorities in each of the provinces and territories of Canada (the “Canadian Shelf Prospectus”) and pursuant to a prospectus supplement dated December 3, 2021 (the “U.S. Prospectus Supplement”) to the Company’s U.S. base prospectus dated September 17, 2021 (the “U.S. Base Prospectus”) included in its registration statement on Form F-10 (the “Registration Statement”) and filed with the U.S. Securities and Exchange Commission (the “SEC”). The Canadian Prospectus Supplement and Canadian Shelf Prospectus are available for download from SEDAR at http://www.sedar.com/www.sedar.com, and the U.S. Prospectus Supplement, the U.S. Base Prospectus and Registration Statement are accessible via EDGAR on the SEC’s website at http://www.sec.gov/www.sec.gov.

The ATM Program is effective until the earlier of (i) the date that all Common Shares available for issue under the ATM Program have been sold, (ii) the date the Canadian Prospectus Supplement in respect of the ATM Program or Canadian Shelf Prospectus is withdrawn and (iii) the date that the ATM Program is terminated by the Company or Agents.

ABOUT HIGH TIDE

High Tide is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. The Company is also North America’s first cannabis discount club retailer, under the Canna Cabana banner, which is the single-largest cannabis retail brand in Canada, with additional locations under development across the country. High Tide’s portfolio also includes retail kiosks and smart locker technology – Fastendr. High Tide has been serving consumers for over a decade through its established e-commerce platforms, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more recently in the hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, BlessedCBD.de, and Amazon United Kingdom, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide was featured in the Report on Business Magazine’s ranking of Canada’s Top Growing Companies in both 2021 and 2022 and was named as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain while providing a complete customer experience and maximizing shareholder value.

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

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 release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, proposed acquisitions, with a focus on smaller, highly accretive bricks-and-mortar opportunities to focus on free cash flow generation from existing business lines); the Company improving cash flow generation; the Company’s future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company’s business and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the market for the Company’s current and proposed product offerings, as well as the Company’s ability to capture market share; the Company’s strategic investments and capital expenditures, and related benefits; the distribution methods expected to be used by the Company to deliver its product offerings; the competitive landscape within which the Company operates and the Company’s market share or reach; the performance of the Company’s business and the operations and activities of the Company; the Company adding the number of additional cannabis retail store locations the Company proposes to add to the Company’s business, with Ontario representing the lion’s share of the increase, upon the timelines indicated herein, and the Company remaining on a positive growth trajectory; same-store sales and consolidated gross margins (including, without limitation, from ELITE and bricks-and-mortar) continuing to increase in the first fiscal quarter of 2023 and beyond; the Company making meaningful increases to its revenue profile; the Company expanding in the German market; the Company deploying Fastendr technology across the Company’s retail stores upon the timelines disclosed herein, including licensing this technology towards the end of 2023; the Company continuing to increase its revenue through the first fiscal quarter of 2023, and the remainder of the year; the Company continuing to integrate and expand its CBD brands; the Company completing the development of its cannabis retail stores; the Company’s ability to generate cash flow from operations and from financing activities; the realization of cost savings, synergies or benefits from the Company’s recent and proposed acquisitions, and the Company’s ability to successfully integrate the operations of any business acquired within the Company’s business; the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2023; Cabana Club and ELITE loyalty programs membership continuing to increase; the anticipated changes to and effects of the ELITE program on the business and operations of the Company; the Company hitting its forecasted revenue and sales projections for the first fiscal quarter of 2023; the Company’s expectations from its Cabana Cannabis Co. and Nuleaf Naturals white label products; the Company launching Cabana Cannabis Co. and Nuleaf Naturals white label products in the jurisdictions and on the timelines outlined herein; the intention of the Company to complete the ATM Program and any additional offering of securities of the Company; the aggregate amount of the total proceeds that the Company will receive pursuant to the ATM Program, connectFirst credit facility and/or any future offering; the Company’s expected use of the net proceeds from the ATM Program, connectFirst credit facility and/or any future offering; the listing of Common Shares offered in the ATM Program and/or any future offering; the anticipated effects of the ATM Program, connectFirst credit facility and/or any future offering on the business and operations of the Company; legislative changes occurring in Germany with respect to adult use cannabis; the Company completing the Sanity Transaction; the intended effects of the Sanity Transaction and synergies created by its completion as outlined herein; the intended effects of adult use cannabis becoming legalized in German; and the Company continuing to grow its online retail portfolio through further strategic and accretive acquisitions.

Forward-looking information in this press release are based on certain assumptions and expected future events, namely: current and future members of management will abide by the Company’s business objectives and strategies from time to time established by the Company; the Company will retain and supplement its board of directors and management, or otherwise engage consultants and advisors having knowledge of the industries (or segments thereof) within which the Company may from time to time participate; the Company will have sufficient working capital and the ability to obtain the financing required in order to develop and continue its business and operations; the Company will continue to attract, develop, motivate and retain highly qualified and skilled consultants and/or employees, as the case may be; no adverse changes will be made to the regulatory framework governing cannabis, taxes and all other applicable matters in the jurisdictions in which the Company conducts business and any other jurisdiction in which the Company may conduct business in the future; the Company will be able to generate cash flow from operations, including, where applicable, the distribution and sale of cannabis and cannabis products; the Company will be able to execute on its business strategy as anticipated; the Company will be able to meet the requirements necessary to obtain and/or maintain authorizations required to conduct the business; general economic, financial, market, regulatory, and political conditions, including the impact of the COVID-19 pandemic, will not negatively affect the Company or its business; the Company will be able to successfully compete in the cannabis industry; cannabis prices will not decline materially; the Company will be able to effectively manage anticipated and unanticipated costs; the Company will be able to maintain internal controls over financial reporting and disclosure, and procedures in order to ensure compliance with applicable laws; the Company will be able to conduct its operations in a safe, efficient and effective manner; general market conditions will be favourable with respect to the Company’s future plans and goals; the Company will reach the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2023; the Company will complete its proposed acquisitions and transactions; the Company will hit its forecasted revenue and sales projections for the first fiscal quarter of 2023; Cabana Club and ELITE loyalty programs membership will continue to increase; the Company will make changes to the ELITE program and it will have the anticipated effects on the business and operations of the Company as outlined here; the Company will deploy Fastendr technology across the Company’s retail stores upon the timelines disclosed herein and license this technology; the Company will launch Cabana Cannabis Co. and Nuleaf Naturals white label products in the jurisdictions and on the timelines outlined herein and such products will achieved the results and have the anticipated effects as disclosed herein; same-store sales and consolidated gross margins (including, without limitation, from ELITE and bricks-and-mortar) will continue to increase in the first fiscal quarter of 2023 and beyond; the Company will make meaningful increases to its revenue profile; the Company will expand in the German market; the Company will continue to increase its revenue through the first fiscal quarter of 2023, and the remainder of the year; the Company will continue to integrate and expand its CBD brands; the Company will add the additional cannabis retail store locations to the Company’s business, with Ontario representing the lion’s share of the increase, and remain on a positive growth trajectory; the Company will complete the development of its cannabis retail stores; the Company will complete the ATM Program; the Company’s will use of the net proceeds from the ATM Program, connectFirst credit facility and/or any future offering as outlined herein; the Company will list the Common Shares offered in the ATM Program and/or any future offering; the ATM Program, connectFirst credit facility, and any future offering will have the anticipated effects on the business and operations of the Company; Germany will make legislative changes and/or legalize adult use cannabis; the Company will complete the Sanity Transaction and it will have the intended effects of the Company and create synergies between the parties as more particularly outlined herein; German adult use cannabis will have the intended effects as more particularly outlined herein; and the Company will continue to grow its online retail portfolio through further strategic and accretive acquisitions.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company’s inability to attract and retain qualified members of management to grow the Company’s business and its operations; unanticipated changes in economic and market conditions (including changes resulting from the COVID-19 pandemic) or in applicable laws; the impact of the publications of inaccurate or unfavourable research by securities analysts or other third parties; the Company’s failure to complete future acquisitions or enter into strategic business relationships; interruptions or shortages in the supply of cannabis from time to time available to support the Company’s operations from time to time; unanticipated changes in the cannabis industry in the jurisdictions within which the Company may from time to time conduct its business and operations, including the Company’s inability to respond or adapt to such changes; the Company’s inability to secure or maintain favourable lease arrangements or the required authorizations necessary to conduct the business and operations and meet its targets; the Company’s inability to secure desirable retail cannabis store locations on favourable terms; risks relating to projections of the Company’s operations; the Company’s inability to effectively manage unanticipated costs and expenses, including costs and expenses associated with product recalls and judicial or administrative proceedings against the Company; risk that the Company will not reach the anticipated sales from continuing operations for the financial year of the Company ending October 31, 2023; risk that the Company will not hit its forecasted revenue and sales projections for the first fiscal quarter of 2023; risk that Cabana Club and/or ELITE loyalty programs memberships will decrease and/or plateau; risks that the Company will not make changes to the ELITE program and/or it may not have the intended effects on the business and operations of the Company; risk that the Company will be unable to deploy Fastendr technology across the Company’s retail stores and/or license this technology or on the timelines disclosed herein or at all; risk that the Company will be unable to launch Cabana Cannabis Co. and/or Nuleaf Naturals white label products in the jurisdictions and on the timelines outlined herein and/or that such products will be unable to achieve the results and/or have the intended effects as disclosed herein; risk that same-store sales and/or consolidated gross margins (including, without limitation, from ELITE and bricks-and-mortar) will not increase, but decease and/or plateau; risk that the Company will be unable to increase its revenue profile; risk that the Company will be unable to increase its revenue through the first fiscal quarter of 2023, and the remainder of the year, but that it will decease and/or plateau; risk that the Company will be unable to expand in the German market; risk that the Company will be unable to continue to integrate and expand its CBD brands; risk that the Company will be unable to grow its online retail portfolio through further strategic and accretive acquisitions; risk that the Company will be unable to add additional cannabis retail store locations to the Company’s business, with Ontario representing the lion’s share of the increase and remain on a positive growth trajectory; risks that the Company will be unable to complete the development of any or all of its cannabis retail stores; risk the Company will not complete the ATM Program; risks surrounding the Company’s inability to list the Common Shares offered in the ATM Program and/or any future offering; risks surrounding the Company’s failure to utilize the use of proceeds from the ATM Program, connectFirst credit facility and/or any future offering as expected; risks surrounding the ATM Program, connectFirst credit facility and/or any future offering not have its anticipated effects on the business and operations of the Company; risks that there will not be legislative changes in Germany; risks that the Company will be unable to close the Sanity Transaction and/or that the transaction will not have its intended effects on the Company; risks that the legalization of adult use cannabis will not have the intended effects on the Company’s business and operations; risks surrounding the sale of hemp seeds; risks surrounding the legality of delta-8 tetrahydrocannabinol (“Delta-8”) derived from hemp; risks surrounding the uncertainty and legality of Delta-8 and delta-9 tetrahydrocannabinol (“Delta-9”) state to state; risk that the United States Drug Enforcement Administration could consider the Company’s Delta-8 products an illegal controlled substance under the Controlled Substances Act (the “CSA”) or Federal Analogue Act in the United States; risk that that state or federal regulators or law enforcement could take the position that the Delta-8 and Delta-9 products and/or in-process hemp extract are/is a Schedule I controlled substance in violation of the CSA and similar state laws; risk that the Company’s Delta-9 products could be considered by state law enforcement and state regulators to be marijuana illegal under state laws criminalizing the possession, distribution, trafficking and sale of marijuana; risk that should the Company become subject to enforcement action by federal or state agencies, the Company could: (i) be forced to stop offering some or all of it Delta-8 and Delta-9 products or stop all business operations, (ii) be subject to other civil or criminal sanctions, (iii) be required to defend against such enforcement and if unsuccessful could cause the Company to cease its operations; and risk that enforcement or regulatory action at the United States federal and/or state level could adversely impact the listings of the Common Shares on the TSXV and Nasdaq.

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

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

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

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

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

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

CONTACT INFORMATION

Media Inquiries

Omar Khan

Chief Communications and Public Affairs Officer

[email protected]

Investor Inquiries

Vahan Ajamian

Capital Markets Advisor

[email protected]

¹Based on reporting by New Cannabis Ventures as of November 14, 2022. For the New Cannabis Ventures’ senior listing, segmented cannabis-only sales must generate more than US$25 million per quarter (CAD$31 million) – for full details, see: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/

²Adjusted EBITDA is a non-IFRS financial measure

³This number includes all customers in High Tide’s global database across Cabana Club, Grasscity.com, SmokeCartel.com, DailyHighClub.com, Dankstop.com, NuLeafNaturals.com, FABCBD.com, BlessedCBD.co.uk, and BlessedCBD.de

⁴Adjusted EBITDA is a non-IFRS financial measure

⁵Based on reporting by New Cannabis Ventures as of November 14, 2022. For the New Cannabis Ventures’ senior listing, segmented cannabis-only sales must generate more than US$25 million per quarter (CAD$31 million) – for full details, see: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/

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.

Full Year 2021 Revenue of $21.3 Million, up 172%

Raises Full Year 2022 Revenue Guidance to $37 to $40 Million

TORONTO & SEATTLE, April 28, 2022–(BUSINESS WIRE)–POSaBIT Systems Corporation (“POSaBIT” or the “Company”) (CSE: PBIT, OTC:POSAF), a leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three and 12-months ended December 31, 2021.

“We exited 2021 with record revenue and accelerating momentum towards another year of growth and expansion,” said Ryan Hamlin, CEO and Co-founder of POSaBIT. “We exceeded the high end of our revenue guidance with $21.3 million in annual revenue and extended our record of doubling revenue each year since 2017. Transactional sales volume increased by more than 174% in 2021, a strong indication of our expanding geographic footprint as well as the accelerating adoption of electronic payment solutions across the industry. We have grown our business with limited investment delivering exponential growth and positive adjusted EBITDA in four of the last six quarters. Increasingly, cannabis merchants are gravitating towards electronic payment solutions for increased security and convenience for their customers, and our open platform gives merchants choice on how they want to build their processing infrastructure. In addition, there are a number of emerging opportunities in the cannabis market that we are eager to explore and further develop our business.”

Hamlin continued, “Looking ahead, we anticipate continued strong growth of our payments business as well as rapid expansion of our POS footprint into new states. Based on our current installed base and merchants under contract, we are raising our full year 2022 revenue guidance to between $37 and $40 million, which represents growth of more than 80% at the midpoint compared to 2021.”

Recent Operational Highlights

• Entered three new markets, Georgia, Texas and West Virginia, expanding geographic presence to 18 U.S. states across CBD and cannabis markets
• Entered CBD market with point-of-sale solution; now live in more than 20 brick and mortar CBD locations nationwide
• Entered into an agreement with dispensary chain Lume, with 32 locations in Michigan that the Company expects to be fully onboarded with POSaBIT by the end of Q2 2022
• Entered into agreements with additional large Multi-State Operators
• Completed the Company’s largest processing day in its history on 4/20/2022 with 100% uptime for the sixth 4/20 in a row
• Shipped several safety related enhancements on the POSaBIT Point of Sale to help promote a safer work environment for all store employees

Fourth Quarter 2021 Financial Highlights

• Transactional sales for Card Services totaled $102.6 million, up 96% compared with $52.4 million in the fourth quarter of 2020
• Total revenue was $6.4 million, up 110% compared with $3.1 million in the fourth quarter of 2020
• Gross profit was $1.5 million, or 23.0% of revenue, up 86% on a dollar basis compared with $797,000, or 26.1% of revenue in the fourth quarter of 2020
• Net loss was $(2.3) million, inclusive of a $(519,000) non-cash change in the fair value of derivative liabilities, compared with a loss of $(116,000), inclusive of a $(78,000) non-cash change in the fair value of derivative liabilities in the fourth quarter of 2020.
• Adjusted net loss was $(1.8) million, which excludes a $(519,000) non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(38,000), which excludes a $(78,000) non-cash change in fair value of derivative liabilities in the fourth quarter of 2020.
• Adjusted EBITDA was $(1.1) million, or (17%) of revenue, compared with $134,000, or 4% of revenue, in the fourth quarter of 2020

Full Year 2021 Financial Highlights

• Transactional sales for Card Services totaled $362 million, up 174% compared with $132 million in 2020
• Total revenue was $21.3 million, up 172% compared with $7.8 million in 2020
• Gross profit was $5.8 million, or 27.0% of revenue, up 232% on a dollar basis compared with $1.7 million, or 22.2% of revenue in 2020
• Net loss was $(10.6) million, inclusive of a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with a net loss of $(1.3) million, inclusive of a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
• Adjusted net loss was $(0.8) million, which excludes a $(9.7) million, non-cash change in fair value of derivative liabilities, compared with an Adjusted net loss of $(1.2) million, which excludes a $(78,000) non-cash change in fair value of derivative liabilities in 2020.
• Adjusted EBITDA was $(1.2) million, or (6%) of revenue, compared with $(558,000), or (7%) of revenue, in 2020

Warrants and Cash Update

As of December 31, 2021, the Company had cash of approximately $4.4 million compared to approximately $1.0 million as of December 31, 2020. This increase was partially driven by approximately $3.9 million of cash received from the exercise of 20,466,927 outstanding warrants during 2021.

Financial Results

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

2022 Outlook

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

Conference Call Information

Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.

Financial Reports

Full details of the financial and operating results are described in the Company’s consolidated financial statements with accompanying notes and related management’s discussion and analysis for the three and twelve months ended December 31, 2021 (collectively, the “FY 2021 Financial Statements and MD&A”). The FY 2021 Financial Statements and MD&A and additional information about POSaBIT are available on the Company’s website at www.posabit.com/investor-relations or on SEDAR at www.sedar.com .

Non-IFRS Measures

Adjusted EBITDA and Adjusted net loss are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and that may not be comparable to similar measures presented by other companies. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and is further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains and/or losses, impairments. The Company defines Adjusted net loss as net loss generated for the period as reported adjusted to remove changes in the fair values of derivative liabilities. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.

Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and ability to achieve goals. Although we believe that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel. POSaBIT is an early stage company with a short operating history; it may not achieve profitability; and it may not actually achieve its plans, projections, or expectations.

Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products and blockchain/cryptocurrency exchange technology generally, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.

Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.

Financial Outlook

This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s forecasted revenue, transaction sales for card services and gross profit for the 12 months to be ended December 31, 2022 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward-Looking Statements” herein. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward-Looking Statements” herein, it should not be relied on as necessarily indicative of future results.

ABOUT POSABIT

POSaBIT (CSE: PBIT) is a financial technology company that delivers unique and innovative, blockchain-enabled payment processing and point-of-sale systems for cash-only businesses. POSaBIT specializes in resolving pain points for complex, high-risk, emerging industries like cannabis with an all-in-one solution that is compliant, user-friendly and utilizes top-of-the-line hardware. POSaBIT’s unique solution provides a safer and transparent environment for merchants while creating a better overall experience for the consumer. For additional information, visit: www.posabit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428005353/en/

Contacts

Investor Relations:
[email protected]

Media Relations:
Oscar Dahl
855-767-2248
[email protected]

Management:
Ryan Hamlin
Co-founder and CEO of POSaBIT
855-767-2248
[email protected]

Hayden IR
James Carbonara
(646) 755-7412
[email protected]

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

About Ryan Allway

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

CALGARY, AB, April 22, 2022 /PRNewswire/ – Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce its year-end audited financial results for the three and twelve month periods ending December 31, 2021.

“Decibel continues to execute on its strategy to accelerate revenue growth and deliver new, unique and innovative choices to cannabis consumers. The success achieved through 2021 with record market share demonstrates the strength we’ve created in our brands, and our dedication towards our customers”, said Paul Wilson, CEO of Decibel. “Our momentum has accelerated into 2022, and we are gaining great traction across our products and brands, particularly with our recent infused product launches over late Q4 and first quarter of 2022.”

Key Financial Highlights – Fiscal Year 2021

• Net revenue of $52 million in 2021, an increase of 75% from 2020.
• Gross profit of $18 million in 2021, an increase of 53% from 2020.
• Positive adjusted EBITDA of $7.4 million in 2021, an increase of 386% from 2020.

Key Financial Highlights – Fourth Quarter

• Net Revenue: Net revenue was $14 million in Q4, a 5% increase over the prior quarter, driven by the launch of Decibel’s new infused pre-roll lines and continued growth in demand for flower, vape and concentrate products. This was partially impacted by price compression in the flower segment and slower retail sales from increased competition. Net revenue grew by 23% over the comparative 2020 quarter.
• Gross Margin: Gross margin was 26% in Q4, compared to 31% in the prior quarter. The decrease in gross margin is attributable to a combination of permanent and transitory impacts.
• Positive Adj. EBITDA: The Company achieved $1.5 million of adjusted EBITDA in Q4, its sixth consecutive quarter of positive adjusted EBITDA and an improvement of 32% from the prior year.
• Flower Sales: 808 kilograms sold in Q4, with an average wholesale net price per gram of $5.70, an increase 64% and a decrease of 25%, respectively, over the prior quarter. The decline in price per gram is due to increased competition in the premium segment to which the Company reduced Qwest Family of Brands pricing by approximately 25% to remain in line with other premium cannabis products. Additionally, overall price per gram declined due to a higher contribution from Qwest and General Admission products that have a lower price per unit as the Company continued to broaden its product offerings to its consumers.
• Derivative Sales: $6.9 million of net sales of vape, infused, and concentrate products in Q4, a 5% increase from the prior quarter. Sales growth was driven by increased demand for vape and concentrate products, as well as the launch of a new infused pre-roll line in late Q4.
• Retail Sales: $2.5 million of retail sales, a 17% decline over the prior quarter, primarily driven by new entrants into the Saskatchewan retail market, partially offset by Alberta retail sales growth.
• Harvests & Yields: Decibel harvested 1,059 kilograms of dried flower material in Q4, representing substantial growth over prior periods as Thunderchild achieved run rate harvests. Yields from the Thunderchild Cultivation Facility fell below management estimates, with a facility upgrade necessary to further enhance product quality and contribute to higher yields, to better meet growing demand for Decibel products. To reinforce the Company’s commitment to quality products, it accelerated the implementation of the planned infrastructure optimization at its Thunderchild Cultivation Facility, which are expected to be completed by end of April.
• Working Capital: Cash used in operations was $5.1 million in the fourth quarter. The Company has made significant investments in working capital to meet the growing demand for Decibel brands and products, helping the Company achieve its aggressive sales growth and preparing for strong launches of infused products in the first quarter of 2022. Additionally, the Company identified certain supply chain risks related to inventory procurement for packaging and vape carts from overseas manufacturers. As a result, the Company invested in the fourth quarter to air freight inventory and hold more inventory than historical levels to mitigate against these risks.
• Debt Financing in Place to Repay Convertible Debentures: On February 1, 2022, the Company closed a debt financing with connectFirst Credit Union in respect of $54 million of debt capital over a 5-year term. The Company has two facilities that remain undrawn:

Q1 2022 Preliminary Results

The Company anticipates for the three-month period ending March 31, 2022:

• Net revenue between $16.5 and $17.5 million, compared to $12.6 million in Q1 2021
• Exiting Q1 2022 with a record 4.0% recreational national market share

Year End and Quarterly Financial Highlights

Link to Decibel’s Investor Presentation

Decibel’s audited financial statements for the year ending December 31, 2021 (“Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) for the three and twelve months ending December 31, 2021, are available under the Company’s profile at www.sedar.com. As of December 31, 2021, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.

About Decibel

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

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

Cautionary Statements

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a “Non-GAAP Measure”). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and twelve months ended December 31, 2021. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.

The Company calculates Adjusted EBITDA as net loss and comprehensive loss excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. Non-GAAP Measures should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate the Decibel’s operating results, underlying performance and prospects in a manner similar to Decibel’s management.

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

Forward Looking Information

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

In this news release, forward-looking statements relate to, among other things, the Company’s ability to meet consumer demand, that the additional capital will accelerate Decibel’s sales growth through the Thunderchild facility and new vape and concentrate launch; the Company’s ability to grow Qwest, Qwest Reserve and Blendcraft brands into new and innovative product formats, variations and its other business plans and expectations. 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: risks relating to delays, regulatory changes and impacts, capital requirements, construction impacts, displacement requirements and unforeseen requirements resulting from the COVID-19 pandemic, the ability to obtain and maintain licences to retail cannabis products; review of the Company’s production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under the Company’s credit facilities; timing and completion of construction and expansion of the Company’s production facilities and retail locations; and the delay or failure to receive board, regulatory or other approvals, including any approvals of the TSX Venture Exchange, as applicable. 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, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than 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.

• Net revenue for Q4 2021 was $6.9 million; Net revenue for 2021 was $25 million.
  
• In February 2021, closed a $7.2 million equity raise to help fund VIVO’s growth
  
• In July 2021, the Company elected a new Board of Directors, announced the appointment of Ray Laflamme as CEO and Chairman of the Board and later welcomed the Former President of McCain Foods Canada and CEO of Zenabis Global, and Former CFO of Cronos Group, to the Board of Directors.
  
• In July 2021, announced that its EU-GMP licensed subsidiary, Beacon Medical Germany GmbH, received its first import permit from Germany’s BfArM, the Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte), allowing for the import of Canadian grown dried flower medical cannabis from the Company’s EU-GMP-certified Napanee, Ontario site, into Europe.
  
• In December 2021, recorded first significant revenues of Canadian produced EU-GMP product by VIVO’s German business
  
• In mid 2021 the Company refined its strategy and is now focused primarily on medical cannabis
  
• The Company continues to have market leadership in Australia and leveraged its Canadian knowledge base to accelerate product efficacy, cannabis medical information sharing, and sales growth
  
• With the Company’s EU-GMP certification, it is now in a position to repeat its Australian success in Germany and in other global markets, all of which are exclusively medically focused
  
• Over 350% year-over-year sales growth in Australia

Toronto, Ontario–(Newsfile Corp. – March 31, 2022) – VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) (“VIVO” or the “Company“) today released its fourth quarter 2021 financial and operating results.

Management Commentary

“We continue to be laser focused on growth, profitability, and the medical cannabis channels in Canada and Internationally,” said Ray Laflamme, CEO of VIVO. “The Board recently approved our 2022 Business Plan in which we are targeting significant international growth along with continued success in domestic markets. We look forward to striving to achieve industry leading metrics as we track our progress towards meeting our objectives. We are confident that VIVO will continue to strengthen its core businesses in 2022.”

Financial Summary

Net revenue for the fourth quarter of 2021 was $6.9 million which represents an 11% increase quarter-over-quarter as compared to Q3 2021. This increase is primarily due to increased sales to Australia balanced by modest decreases in adult-use sales reflecting the Company’s change in focus away from the adult-use recreational market.

Net revenue for 2021 was $25 million, a decrease of about 24% compared with the same period last year, driven largely by a decrease in adult-use sales and a shift in focus to domestic and international medical channels.

General and administrative expenses decreased to $14.3 million for the year ended December 31, 2021, compared to $18.7 million for 2020. The decrease was primarily driven by a reduction in salaries and wages of $3.2 million and a reduction in consulting and professional fees of $1 million.

The Company’s Adjusted EBITDA increased by $1.1 million to a loss of $11.1 million during the year ended December 31, 2021 compared with the same prior year period, mainly due to lower operating expenses.

During the year-end audit, an annual asset impairment test was performed, and the Company determined an impairment charge of $71.5 million was required as Canna Farms’ carrying value was found to exceed its recoverable amount. This was offset by a reduction in the Company’s deferred tax liability of $18.2 million.

Key Performance Indicators

⁽¹⁾ Adjusted EBITDA is not a measure of financial performance under IFRS. For the Company’s definition of Adjusted EBITDA, see the Company’s management’s discussion and analysis for the year-ended December 31, 2021, available under the Company’s profile at www.sedar.com.

Business Update

General and administrative expenses decreased by 24% for the year ended December 31, 2021, compared to 2020. Sales and marketing expenses decreased by 15% in 2021, reflecting the reallocation of external sales agency costs internally and focusing on medical cannabis growth. Finance expenses decreased during the year ended December 31, 2021, by 75% compared to the same period in 2020 driven by the Company eliminating its $5.3 million of convertible debentures, resulting in a decrease in accretion and interest expenses on the debt.

The Company had gains (losses) on other financial assets, comprised of marketable securities of other issuers held by the Company. In 2021 the Company realized gains of $1.0 million on these assets and proceeds from the sale of these financial assets of $8.2 million. During the year, the Company raised $7.2 million of equity (net of listing fees). In 2021, the Company also generated proceeds of $1.0 million from the sale of property. As of December 31, 2021, the Company had working capital of $18.3 million including cash and cash equivalents of $11.3 million.

In July 2021, at the Annual General Meeting, the shareholders elected Holly Workman and Eric Shipman as new Directors to the Board, announced the appointment of Ray Laflamme, founder of Canna Farms, as CEO and Chairman of the Board and in December 2021, appointed Glen A. Huber, former CFO of Cronos Group and Shai Altman, former President of McCain Foods and former CEO of Zenabis Global, to the Board of Directors.

Strategic Priorities

VIVO remains focused on executing against its strategic priorities and focusing on the medical cannabis market in Canada and internationally. The Company has made significant progress in enhancing supply and production capabilities, expanding its customer network, increasing its focus on providing patient focused medical cannabis products and services, and accelerating its international medical business. VIVO believes focusing on its core priorities will generate long-term shareholder value and accelerate the path to profitability.

Patient Care Expertise

The Company has provided educational consultants and medical cannabis care in over 150,000 patient interactions through its HMED clinics (as defined below) since 2017. Canna Farms’ best-in-class, award-winning, Patient Care Team has been providing patient services since 2014 and has firsthand expertise in product ordering, and patient support. With patient-centricity at its core, in 2021 the Company widened its product offerings and enhanced its best-in-class support programs including Compassionate Care, Veterans, and First Responders, so that all patients have access to affordable quality cannabis as medicine.

Quality Production

Canna Farms and ABcann Medicinals together have more than fifteen years of experience supporting cannabis medical patients with a wide range of conditions and symptoms and together have amassed a deep understanding of patient motivations and needs.

Canna Farms was established in 2013, as the first licensed producer in British Columbia, and since that time has established deep roots in the medical cannabis community. It is now a respected and recognized cannabis brand with thousands of positive patient self-reported outcomes. Today Canna Farms is one of the top medical brands in Canada. Canna Farms was BC’s first licensed producer and proudly holds itself to the highest cultivation standards. In 2020, it was recognized by Brightfield Group as the brand with the 4th highest Brand Awareness.

Canna Farm has many thousands of patients who have tracked themselves and self-reported their outcomes using the Strainprint app in over 650,000 sessions. Due to this, Canna Farm has the largest data set within the mobile app and the efficacy of specific strains used for various conditions have been published in several independent academic peer-reviewed articles. Canna Farms operates an industry-leading online medical cannabis platform, (https://www.cannafarms.ca/product-medical) that combines the Company’s brands with products from third-party cultivators in one on-line medical store. There are currently over 10 brands and 100 curated products offered on the Canna Farms medical store.

Canna Farms operations focus on indoor cannabis cultivation, packaging, solventless extraction and concentrate production.

ABcann Medicinals’ operations in Napanee Ontario focus on ethanol extraction, product formulation, and EU-GMP related processes. This operation’s ethanol extraction suite produces high quality cannabis extracts and distillates for use in many of VIVO’s products including quality oils, distillates, concentrates and more advanced formulations of VIVO’s current and anticipated portfolio of medical products, as well as edibles and topicals.

With all operating facility expansion projects completed, VIVO anticipates capital expenditures for 2022 to be minimal. Disciplined investments in product development, facility optimization and international market commercialization are expected to continue to facilitate future profitable growth.

International Markets

VIVO continues to pursue its international expansion strategy, leveraging its experience and leadership to enter new high-growth markets. The Company’s initial focus is on the German and Australian markets, which, combined, have a population of over 100 million people.

The Company has a strong medical cannabis market leadership established in Australia and leverages its Canadian knowledge base to accelerate product efficacy, cannabis medical information sharing, and sales growth in that market. Australia’s Therapeutics Goods Administrator (“TGA”) continues to report a record number of new patient approvals and the growth in the market has been matched by the growth in VIVO’s Beacon Medical Australia business. VIVO currently sells five products under the Beacon Medical brand in Australia.

On March 11, 2021, VIVO’s Vanluven facility in Napanee, Ontario received EU-GMP (European Union Good Manufacturing Practices) certification from Germany’s Brandenburg health authority, the Landesamt für Arbeitsschutz, Verbraucherschutz und Gesundheit (“LAVG”). The certification enables VIVO, through its ABcann Medicinals subsidiary, to export product for sale into European and other markets requiring products to be manufactured under EU-GMP standards.

On July 29, 2021, the Company announced that its EU-GMP licensed subsidiary, Beacon Medical Germany GmbH, received its first import permit from Germany’s BfArM, the Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte), allowing for the import of Canadian grown dried flower medical cannabis from the Company’s GMP-certified Napanee, Ontario site, into Europe.

Starting October 2021, the Company, through its ABcann Medicinals subsidiary, exported EU-GMP dry flower to Germany. This was an enormous milestone for the Company.

With the Company’s recent EU-GMP certification, it is now in a position to repeat its Australian success in Germany and in other global markets, all of which are exclusively medically focused. The Company’s products and brands prove their value in Canada first, and this success is then replicated in international markets, as regulations allow.

Clinical Care

The Company purchased its Harvest Medicine (“HMED”) operations in 2018 and since the acquisition has leveraged clinical insights from tens of thousands of HMED patients to research patient outcomes, to publish observational clinical studies, to educate and increase health care prescriber adoption, to improve market access, and to direct future product development within its medical channels. Harvest Medicine utilizes a virtual platform, “HMED Connect” and has recently added pharmacy consultations as a service for patients as part of their medical cannabis care offering.

The portfolio consists of four education-focused, patient-centric, cannabis discovery clinics, including two clinics located in Alberta and two additional clinics in the provinces of New Brunswick and Nova Scotia. HMED has conducted more than 150,000 registered patient visits through its clinics, clinic-in-clinic partnerships and via its telemedicine platform, making it one of the top clinic networks in Canada. In the first half of 2021, Harvest Medicine began offering pharmacy consultations as an additional service offering for patients as part of their medical cannabis care.

VIVO is committed to pursuing innovation throughout its value chain. The Company uses data insights gained from Harvest Medicine’s clinics and from Canna Farms’ medical cannabis platform as a foundation for the development of products that more effectively meet patients’ needs.

During 2021 the Company had to temporarily suspend in-clinic visits at its Harvest Medicine clinics (the majority of these have been reopened). The Company’s HMED Connect telemedicine platform proved to be of increased service to the medical cannabis market with patients preferring to conduct appointments online during the pandemic. HMED’s telemedicine platform brings medical cannabis information and services to patients across Canada, allowing them to access the same patient-centric services they would receive in HMED clinics, online.

About VIVO Cannabis®

VIVO Cannabis® is recognized for trusted, premium cannabis products and services. It holds production and sales licences from Health Canada and operates world-class indoor and seasonal airhouse cultivation facilities. VIVO has a collection of premium brands, each targeting different customer segments, including Canna Farms, Beacon Medical®, Fireside, and Lumina. Harvest Medicine, VIVO’s patient-centric, scalable network of medical cannabis clinics, has serviced over 150,000 patient visits. VIVO is pursuing several partnership and product development opportunities and is focusing its international efforts on Germany and Australia. For more information visit: www.vivocannabis.com

For further information:

VIVO Investor Relations
Michael Bumby, Chief Financial Officer
[email protected]

Instagram: https://www.instagram.com/vivo_cannabis/
LinkedIn: https://www.linkedin.com/company/vivo-cannabis-inc/
Facebook: https://www.facebook.com/vivocanna/
Twitter: https://twitter.com/vivo_cannabis

Disclaimer for Forward-Looking Information

All dollar amounts in this news release are in Canadian dollars. Certain statements in this news release are forward-looking statements, which are statements that are not purely historical, including statements regarding the beliefs, plans, expectations or intentions of VIVO and its management regarding the future. Forward-looking statements in this news release include statements regarding: the Company’s expected catalysts to deliver profitable growth, including entry into domestic and international markets; the development and launch of innovative products and services and the financial impact thereof; the integration of its facilities; redefining the Company’s strategy; accelerating its path to profitability; the Company’s expectation that focusing on the medical cannabis segment will generate long-term shareholder value and accelerate the path to profitability; the factors that VIVO believes will drive significant growth in medical cannabis utilization; and the ability of the Company’s growth initiatives to drive future profitable sales beyond 2021. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward‐looking statements, including: that the medical cannabis market may not grow to the extent, within the time, or for the reasons expected by the Company; changes to the recreational market; that the COVID‐19 pandemic may last longer and have a more significant impact on the Company’s operations, the Canadian cannabis industry, or the global economy generally, than currently expected; that the Company faces competition against new market entrants and participants; that the Company may not be able to launch new products in the time expected or at all and that patients may not receive the expected benefits therefrom; that the Company may not be able to achieve competitive margins; that new products, if launched, may not be accepted by the market or may become subject to product liability claims; that the Company may not be able to obtain necessary licences; that demand for the Company’s products may not meet management’s expectations; that the Company may be unable to retain its key talent; that the Company may not be able to execute on its strategic partnerships; that the Company may not obtain any other necessary regulatory approvals as required from time to time; that the Company may be unable to protect its intellectual property; and other factors beyond the Company’s control. 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, and the more extensive risk factors included in the Company’s management’s discussion and analysis for the year-ended December 31, 2021, which is available on SEDAR, 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. The forward‐looking statements in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such 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.

50% Revenue Growth Year-over-Year and 188% Increase in Cash Provided by Operations in 2021

National Advisory & Brokerage Clients in New State Markets Set the Stage for Company Expansion

SCOTTSDALE, Ariz., March 24, 2022–(BUSINESS WIRE)–Zoned Properties®, Inc. (the “Company”) (OTCQB: ZDPY), a leading real estate development firm for emerging and highly regulated industries including legalized cannabis, today announced its financial results for the fourth quarter and year ended December 31, 2021.

Full-Year 2021 Financial Results

• Revenues were $1.82 million for the year ended December 31, 2021, compared to $1.22 million for the year ended December 31, 2020, representing an increase of 49.8%.
• Operating expenses were $1.78 million for the year ended December 31, 2021, compared to $1.18 million for the year ended December 31, 2020.
• Cash provided by operating activities was $489,257 for the year ended December 31, 2021, compared to $170,040 for the year ended December 31, 2020, representing an increase of 188%. that was primarily attributable to cash generated from advisory and brokerage revenues.
• The Company had cash of $1,191,940 as of December 31, 2021, compared to $699,335 as of December 31, 2020, continuing positive cash-flow.

Fourth Quarter 2021 Financial Results

• Revenues were $537,211 for the quarter ended December 31, 2021, compared to $308,977 for the quarter ended December 31, 2020.
• Operating expenses were $535,345 for the quarter ended December 31, 2021, compared to $268,046 for the quarter ended December 31, 2020.
• For the quarter ended December 31, 2021, the Company reported net loss of $111,583, as compared to net income of $12,270 for the quarter ended December 31, 2020.
• The Company had cash of $1,191,940 as of December 31, 2021, compared to $1,090,682 as of September 30, 2021, continuing positive cash-flow.

Management Discussion and Company Highlights

• Zoned Properties Property Portfolio: Zoned Properties has achieved a stabilized, debt-free, property portfolio in Arizona that now produces $1.83 million annually in triple-net rental revenue, as of March 2022. We believe the Company is now positioned to explore healthy debt financing opportunities that could help fund the national expansion of the Company’s property portfolio.
  • Portfolio expansion in 2021 and subsequent to year-end included more than $8 million of capital investment by the Company’s significant tenant at the Chino Valley Cultivation Facility, significantly increasing operational size and rental revenue for Zoned Properties.
  • Subsequent to year-end 2021, effective March 1, 2022, Zoned Properties provided the Company’s significant tenant with an initial tenant improvement allowance of $500,000 to advance the Chino Valley project toward the next phase of expansion. In exchange, the base rent rate under the Chino Valley lease agreement increased from $0.82 per square foot monthly to $0.90 per square foot monthly.
  • Subsequent to year-end, effective March 1, 2022, Chino Valley’s operational square footage increased from 67,312 square feet to 97,312 square feet, and the new base rental payments at the facility increased 59% from $55,195 per month to $87,580 per month, reflecting both the increase in operational square footage and the increase to the base rent rate. The increase represents a year-over-year annualized base rental revenue increase from $393,600 in March 2020 to $1,050,970 in March 2021, reflecting a 167% increase.
  • The Chino Valley Cultivation Facility sits on over 47 acres of land, and also includes an approved master plan for additional future expansion. If currently permitted and construction-ready expansion were to be completed in its entirety, the additional square footage of operational and rentable building space would increase another 60,000 square feet, for a total of 157,312 square feet of operational and rentable space at the facility. This change would effect an increase in annualized base rental revenue to $1,698,970 for the Chino Valley Cultivation Facility plus additional rental payments under the triple-net lease.

• Zoned Properties Commercial Real Estate Services: The Company’s expanding leadership team is continuing to scale the Company’s commercial real estate services divisions: Advisory Services, Brokerage Services, Franchise Services, and Property Technology (“PropTech”) Services.
  • Zoned Properties Advisory Services: The Company has been expanding its advisory services team nationally, specializing in commercial real estate for emerging and regulated industries, including the regulated cannabis industry. The team has successfully identified hundreds of cannabis zoned properties nationally and has recently helped clients close cannabis real estate transactions in Arizona, New Mexico, Ohio, and New Jersey.
  • Zoned Properties Brokerage Services: Since inception of the Company’s in-house licensed brokerage in June 2021, the Zoned Properties team has closed over $50 million worth of real estate transactions for brokerage clients and has engaged with clients to list over 300,000 square feet of commercial real estate for cannabis dispensaries, cultivation, processing, and warehouse facilities. The brokerage team is currently engaged with national cannabis organizations, buyers, investors, and exclusive client listings with over $500,000 in future commission potential across dozens of commercial real estate projects.
  • Zoned Properties Franchise Services: Zoned Properties and national cannabis retail franchisor, Open Dør Dispensaries, have been vetting prospective investment partners and franchisees from across the country to target new franchise locations for existing and upcoming regulated cannabis markets. Zoned Properties will benefit both directly and indirectly from any growth achieved by Open Dør Dispensaries. As an investor, the Company will receive a percentage of initial franchise fees and renewal fees, and as the commercial real estate partner, the Company is positioned to provide commercial real estate services and investments for franchise real estate locations.
  • Zoned Properties PropTech Services: PropTech data solutions have the opportunity at national scale to bring service and data solutions to complex markets such as regulated cannabis. Zoned Properties has partnered with premier real estate zoning experts at Zoneomics to solve one of the biggest challenges in cannabis real estate: how to identify zoned properties that can be permitted and authorized for cannabis operations. The project team expects to officially launch the platform into the marketplace in 2022. Under the brand, “Rezone”, the PropTech data platform will focus on democratizing commercial real estate intelligence, providing hundreds of thousands of service professionals, business operators, and real estate investors with the data and information they need to successfully develop regulated real estate projects.

“The Zoned Properties mission and value proposition has never been stronger than it is today, empowering regulated industry stakeholders with commercial real estate solutions. We are helping cannabis operators and entrepreneurs enter the regulated marketplace with legitimacy. During 2021, we successfully recruited a sophisticated team of experts onto our team and formalized service partnerships across the nation,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “With stabilized, passive revenue from our portfolio and a clear pathway to expand into state-cannabis markets nationally, we believe that Zoned Properties is positioned for tremendous growth and scalability. These growth opportunities are the result of our team’s direct involvement in hundreds of regulated projects across the nation, leveraging our full-spectrum of commercial real estate services. We thank our shareholders, stakeholders, clients and partners for their trust in Zoned Properties and will continue working hard to bring them value.”

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 8360 E. Raintree Dr., Suite 230, 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 and their customers and will remain open pursuant to state and local government requirements. We did not experience in 2021, and to date have not experienced in 2022, any material changes to our operations from COVID-19. We do not anticipate any such material changes for the remainder of 2022. 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/20220324005166/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

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.

2021 Net Revenue Increased 44% Year-over-Year

All Licenses for Phase I Retrofit of SoCal Cultivation Facility Received, with First Harvest Expected During Q3 2022

Conference Call to be Held March 17, 2022 at 8:00 a.m. ET

LONG BEACH, Calif. and TORONTO, March 17, 2022 /CNW/ – Glass House Brands Inc. (“Glass House” or the “Company”) (NEO: GLAS.A.U) (GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF), one of the fastest-growing, vertically integrated cannabis companies in the U.S., today reported financial results for its fourth quarter and year ending December 31, 2021.

Fourth Quarter 2021 and 2021 Full Year Highlights
(Unaudited results, unless otherwise stated, all results are in U.S. dollars)

• Net Sales increased 7% to $18.4 million in Q4 2021, compared to $17.2 million in Q3 2021. In 2021, net sales increased 44% to $69.4 million from $48.3 million in 2020.
• Equivalent Dry Pound Production in Q4 was a record high of 29,738 pounds compared to 28,268 pounds in Q3 2021.
• Cash balance was $51.1 million at year-end 2021, compared to $28.9 million in Q3 2021 and $4.5 million at year-end 2020.
• Gross Profit decreased 116% to $(0.4) million in Q4 2021 compared to $2.3 million in Q3 2021. In 2021, gross profit was $16.0 million compared to $18.7 million in 2020.
• Gross Margin in Q4 2021 was (2)% compared to 14% in Q3 2021. Gross margin in 2021 was 23% compared to 39% in 2020.
• Adjusted EBITDA¹ decreased 71% to $(9.1) million in Q4 2021 compared to $(5.4) million in Q3 2021. In 2021, Adjusted EBITDA was $(11.8) million, compared to $(0.3) million in 2020.
• Adjusted EBITDA Margin¹ was (50)% in Q4 2021, compared to (31)% in Q3 2021. In 2021, Adjusted EBITDA Margin was (17)%, compared to (1)% in 2020.
• Cost per Equivalent Dry Pound of Production¹ fell 7% sequentially to $166 in Q4 2021.

Management Commentary

“With the first phase of our SoCal cultivation facility operational; and its construction on time and on budget; and the receipt of our nursery, cultivation and processing licenses, we are well on our way to becoming the top vertically integrated operator in California,” stated Kyle Kazan, Glass House Chairman and CEO. “I am delighted with our progress and thrilled to have started cultivation, with the first product sales expected in the third quarter, ahead of our initial projections.”

Mr. Kazan added, “Looking at the quarter, despite a destructive wholesale pricing environment in California, we exceeded our original projections for top line revenue growth driven by a 31% increase in wholesale biomass sales versus Q3. Demand for our high-quality products has remained robust; and as our new facility gets up and running, we will be ready to meet it. We expect our Phase I retrofit at our SoCal facility to increase our annual production capacity by 180,000 pounds, bringing our overall total capacity to 270,000 pounds.”

Mr. Kazan continued, “We have been expecting the commoditization of cannabis and related pricing pressure since we founded the Company. Consolidation has always been our thesis, and the distress in the market is what consolidation looks like. Wholesale flower prices are unsustainably low in California, and the other states which have experienced similar pressure bottomed before rising to a level which supports efficient cultivators. Growers of all sizes will be forced to discontinue operations unless they can find a way to decrease their costs. For this reason, I am particularly thankful that we leaned into the SoCal Facility, which should do exactly that. We expect our margins and top line growth to be directly and positively affected as we expand cultivation.”

Mr. Kazan concluded, “This is a tremendous time for Glass House, and I am incredibly proud of the efforts of our team and all the successes we have accomplished together. Looking ahead, we are more ready than ever to meet the opportunities of 2022. We are focused on building exceptional brands, growing the breadth and depth of our product portfolio and retail store network, and we remain confident in our ability to be a best-in-class and influential market leader in the maturing California market. Our commitment to innovation and high-quality, sustainably grown craft cannabis sets us apart from every other operator, and we are excited by the opportunity ahead as we strengthen our footprint and drive value for our shareholders.”

Q4 2021 Financial and Operational Metrics

Fourth Quarter 2021 Operational Highlights

Subsequent Events

Participation in Broker and Industry Conferences

• March 13^th to 15^th – 34^th Annual Roth Conference 2022
• March 15^th to 19^th – South by Southwest
• April 6^th – 7^th – BTIG Global Cannabis Conference
• June 2^nd – Jefferies Cannabis Summit

Q4 2021 Financial Results Discussion

Revenue was $18.4 million, an 8% increase compared to Q4 2020 and a 7% increase compared to Q3 2021. The sequential revenue growth was driven by wholesale biomass sales, which increased 31% over Q3 2021. Performance by business line was:

• Retail: $5.1 million, down 2% quarter-over-quarter and up 38% year-over-year. The year-over-year increase was due to the addition of the Farmacy Berkeley in early 2021, which generated $1.7 million in net retail revenues in Q4 2021.
• Wholesale CPG: $6.7 million, down 4% quarter-over-quarter and up 5% year-over-year. CPG’s decline was lower than the overall market decline for flower of 11%, based on Headset data.
• Wholesale Biomass: $6.5 million, up 31% quarter-over-quarter and down 5% year-over-year. The sequential revenue growth was enabled by a 27% increase in dry weight sold versus the prior quarter.

Cost of goods sold was $18.7 million in Q4 2021, a 26% increase from $14.8 million in Q3 2021 and an 85% increase from $10.1 million in Q4 2020. The quarter included $3.0 million of non-cash expenses related to inventory reserves for obsolete or slow-moving product as well inventory revaluation of our biomass live plants to lower values to reflect current production costs. The aforementioned 27% sequential increase in dry weight sold also contributed to the quarter-over-quarter increase in COGS.

Gross profit for Q4 2021 was $(0.4) million, a 116% decrease from $2.3 million in Q3 2021. Gross margin was (2)%, compared to 14% in Q3 2021. The $3.0 million non-cash expenses described above reduced gross margin by 16 percentage points. In addition, average pricing for our flower fell 27% versus Q3 2021 while smalls dropped 59%. Had Q3 2021 prices held into Q4, revenues and gross margin would have been $3.2 million higher, increasing margins by an additional 15 percentage points in Q4 2021.

Total operating expenses for Q4 2021 were $19.3 million, compared to total operating expenses of $11.9 million for Q3 2021 and $6.9 million in Q4 2020.

G&A expenses were $13.5 million in Q4 2021, compared to $8.5 million in Q3 2021 and $5.2 million in Q4 2020. The current quarter included $3.2 million of non-operational notes receivables charged to bad debt reserve. Of this reserve, $2.2 million is related to the Element 7 transaction and an additional $1.0 million is related to a note issued to our Pottery venture. There is an additional $1.0 million G&A expense related to startup costs associated with our SoCal facility and expansion of our retail footprint during the quarter.

Q4 2021 sales and marketing expenses were $1.2 million, a $0.3 million increase over Q3 2021 and a $0.8 million increase over Q4 2020. The sequential increase in sales and marketing expenses compared to Q3 2021 were primarily due to seasonal promotions, digital marketing, and trade marketing.

Professional fees were $2.1 million in Q4 2021, compared to $1.7 million in Q3 2021 and $0.5 million in Q4 2020. The sequential increase in professional fees was due to spending to support various expansion initiatives.

Q4 2021 depreciation was $2.5 million, compared to $0.8 million in Q3 2021 and $0.7 million in Q4 2020. The sequential increase in depreciation is primarily due to capital expenditures at the SoCal Facility.

Adjusted EBITDA¹ was a loss of $9.1 million in Q4 2021 compared to a loss of $5.4 million in Q3 2021 and $1.3 million gain in Q4 2020. The sequential decrease of $3.8 million was primarily caused by lower wholesale pricing and inventory reserves in Q4 2021 that negatively impacted gross margin.

Cash and cash equivalents were $51.1 million as of December 31, 2021, compared to $28.9 million as of September 30, 2021 and $4.5 million as of December 31, 2020.

Year End 2021 Financial Results Discussion

Revenue for 2021 was $69.4 million, an increase of $21.2 million, or 44%, from $48.3 million in 2020, primarily due to an increase in the Company’s CPG business and retail operations. The increase was driven primarily by the Company’s CPG business which increased 93% as a result of the strong growth in Glass House Farms branded sales. Retail sales increased by 50%, driven mainly by the full year impact of the Company’s Berkeley store, which opened in January of 2021 and produced $6.8 million in revenue during the year. Wholesale biomass revenue increased 8% but was negatively impacted by large declines in wholesale prices, particularly during the second half of 2021. On average for the fiscal year, the Company experienced a 38% decrease in flower prices and 45% decrease in smalls between 2020 and 2021. Had 2020 prices held throughout 2021, revenues would have been $12.1 million higher.

Gross margin for fiscal 2021 was 23% compared to 39% for the 2020 fiscal year 2020. The decrease in average biomass pricing in fiscal 2021 vs. 2020, most of which occurred in the second half of 2021, accounted for the majority of the 16 point decrease in gross margin during the year. Gross margin was also negatively impacted by the earlier referenced inventory reserves and revaluations.

Total operating expenses for 2021 were $51.1 million, an increase of $26.4 million, or 107%, compared to total operating expenses of $24.7 million for 2020. G&A expenses for 2021 and 2020 were $33.7 million and $18.6 million, respectively, an increase of $15.1 million, or 81%. The increase in G&A expenses is primarily attributed to the Company’s initiatives in connection with operational expansion, including corporate, cultivation and retail operations, which resulted in an increase of $8.3 million across salaries and wages, stock-based compensation and IT consulting fees.

Sales and marketing expenses for 2021 and 2020 were $3.5 million and $1.5 million, respectively, an increase of $2.0 million, or 137%. The increase in sales and marketing expenses is primarily attributed to the increase in the Company’s efforts related to digital media, marketing research and royalty expenses of $0.6 million.

Professional fees for the year ended December 31, 2021 and 2020 were $9.1 million and $2.0 million, respectively, an increase of $7.0 million, or 345%. The Company recognized increased legal fees of $2.4 million coupled with increased accounting and consulting professional fees of $4.9 million, primarily related to the business combination transaction, SoCal asset acquisition and other initiatives that occurred during 2021.

Adjusted EBITDA¹ was a loss of $11.8 million for 2021, compared to a loss of $0.3 million for 2020. The increase is due to a lower gross profit coupled with higher non-excludable operating expenses.

Financial results and management’s discussion and analyses are available on the Company’s investor relations website (https://ir.glasshousegroup.com/) and SEDAR (www.sedar.com).

SoCal Cultivation Facility Update

The Company received the necessary licenses to operate Phase I of the SoCal facility on March 11th, including all California State licenses for nursery, cultivation, and processing operations; and the local cannabis business license from Ventura County. Glass House has already commenced nursery activities, and projects the first harvest and sale will occur in the third quarter of this year.

Phase 1 includes approximately 500,000 square feet of nursery facilities, an approximately 900,000 square-foot Kubo ultra-clima high-efficiency greenhouse, a processing center and a new distribution center. The Phase 1 retrofit is expected to enable the Company to produce an additional 180,000 dry pounds of craft cannabis. The Company expects that the SoCal facility will allow it to significantly reduce cost of production, and eventually achieve $100 per pound.

Retail Rollout Update

The Company expects to open three dispensaries in the second half of this year. The Eureka location is expected to open in the third quarter; and Isla Vista and Santa Ynez are expected to open in the fourth quarter. This is later than projected in the Company’s Q3 2021 results press release and is due to delays in the construction permitting process. The Eureka location extends Glass House’s retail reach into the heart of the Emerald Triangle. Isla Vista and Santa Ynez are in prime areas that are both limited to a single license, and these dispensaries will offer the same award-winning customer experience as the Company’s existing stores. All three of these properties will be branded as Farmacy locations. Glass House previously expressed its intention to open a Farmacy location in Dunsmuir, however, after additional due diligence, it decided not to pursue the Dunsmuir license.

PLUS Acquisition Update

Late last year, the Company announced a definitive agreement to acquire the business of Plus Products Inc. (“PLUS”), through the acquisition of 100% of the outstanding securities of its subsidiary Plus Products Holdings Inc. PLUS is one of the state’s top ranked brands in the edibles segment, such that the Company’s acquisition of the PLUS business would be expected to place Glass House in a top 5 position in both the flower and edible categories. Glass House expects the transaction will close in April 2022.

2022 Outlook

With cultivation already started in our SoCal facility, Glass House is even more focused on the cash flow potential of the Company. Assuming wholesale and CPG pricing remain stable throughout this year and next, the Company is able to fully utilize the Phase 1 capacity of the SoCal Facility and that production will be commensurate with current production metrics, Glass House believes this will put the Company on a path to begin generating positive cash flow from operations by early 2023.

Sales Metrics

Operational Results

Conference Call

The Company will host a conference call to discuss the results on Thursday, March 17, 2022 at 8:00 a.m. Eastern Time.

About Glass House
Glass House is one of the fastest-growing, vertically integrated cannabis companies in the U.S., with a dedicated focus on the California market and building leading, lasting brands to serve consumers across all segments. From its greenhouse cultivation operations to its manufacturing practices, from brand-building to retailing, the company’s efforts are rooted in the respect for people, the environment, and the community that co-founders Kyle Kazan, Chairman and CEO, and Graham Farrar, President, instilled at the outset. Through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers, and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence: outstanding cannabis products, produced sustainably, for the benefit of all. For more information and company updates, please visit www.glasshousebrands.com and https://ir.glasshousebrands.com/contact/email-alerts/.

Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, within the meaning of applicable securities laws (collectively referred to herein as “forward-looking statements”). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements, and are qualified in their entirety by this cautionary statement. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements contained herein include, but are not limited to, the Company’s expectation that it will be become the top vertically integrated operator in California; that the first product sales will occur in the third quarter, ahead of our initial projections; that as our new facility gets up and running, we will be ready to meet demand for our products; that our Phase I retrofit at our SoCal facility will increase our annual production capacity by 180,000 pounds, bringing our overall total capacity to 270,000 pounds; that growers of all sizes will be forced to discontinue operations unless they can find a way to decrease their costs; that the SoCal Facility, should decrease costs; that our margins and top line growth will be directly and positively affected as we expand cultivation; that we will be able to be a best-in-class business and influential market leader in the maturing California market; that opportunity lies ahead as we strengthen our footprint and drive value for our shareholders; that our first harvest and sale from our SoCal Facility will occur in the third quarter of this year; that the Phase 1 retrofit at the SoCal Facility will enable the Company to produce an additional 180,000 dry pounds of craft cannabis; that the SoCal facility will allow us to significantly reduce our cost of production and eventually lower production costs to $100 per pound; that the Company will open 3 dispensaries in the second half of this year; that the Eureka location will open in the 3rd quarter and Isla Vista and Santa Ynez locations are expected to open in the 4th quarter; that our proposed acquisition of PLUS’s business would be expected to place us in a top 5 position in both the flower and edible categories; that the PLUS transaction will close in April; that we will begin generating positive cash flow from operations by early next year.

Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, that the Company will not become the top vertically integrated operator in California; that the expected timing for first product sales, the opening of new dispensaries and the generation of positive cash flow from operations will not occur on the timeline expected, or at all; that the retrofit being completed at our SoCal Facility will increase production capacity as expected or decrease costs as stated; that the Plus transaction will close in April; and such other risks as are set out in the Company’s public filings available under the Company’s profile on SEDAR at www.sedar.com.e. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE Glass House Brands 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.

Fourth Quarter 2021 Revenue Totaled $9.0 Million, an Increase of 12% Sequentially and 122% YoY

FY2021 Revenue of $28.2 Million, an Increase of 142% YoY

Fourth Quarter 2021 Net Income Attributable to Common Stockholders totaled $4.3 Million, FFO of $6.8 Million, and AFFO of $7.0 Million

NEW CANAAN, Conn., March 17, 2022 (GLOBE NEWSWIRE) — NewLake Capital Partners, Inc. (OCTQX: NLCP) (“The Company” or “NewLake”), a leading provider of real estate capital to state-licensed cannabis operators, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

“2021 was a transformative year for our company,” said David Weinstein, Chief Executive Officer of NewLake Capital Partners. “After closing a merger in March and our IPO in August, we have been deploying capital strategically and with the upmost discipline. Our portfolio today has a 14.5 year weighted average lease term, 12.5% weighted average yield and 2.5% average annual rent escalations. Additionally, we have increased our quarterly dividend in each of the last four quarters, to $0.33 per share in the first quarter of 2022 or $1.32 annually.”

Anthony Coniglio, President and Chief Investment Officer of NewLake Capital Partners commented, “Our pipeline in the fourth quarter of 2021 continued to be robust, providing meaningful opportunities to invest our capital into high-quality transactions. As the industry continues its rapid growth trajectory, we expect our pipeline to deliver further growth and diversification from both new and existing tenant relationships. We will continue to maintain our disciplined underwriting approach allowing us to maximize returns as we deploy capital and capture duration and yield for our shareholders.”

Fourth Quarter 2021 Financial Highlights and Subsequent Events (comparison to fourth quarter 2020):

• Revenue more than doubled totaling $9.0 million, as compared to $4.1 million.
• Net income attributable to common stockholders totaled $4.3 million, as compared to net income attributable to common stockholders of $2.9 million.
• Funds from operations (“FFO”) totaled $6.8 million.
• Adjusted funds from operations (“AFFO”) totaled $7.0 million.
• Cash and cash equivalents as of December 31, 2021 was $127.1 million. As of December 31, 2021, $24.0 million was committed to funding tenant improvements.
• Subsequent to December 31, 2021, funded $3.4 million of tenant improvements.
• Subsequent to December 31, 2021, the board of directors declared a first quarter 2022 dividend of $0.33 per common share, equivalent to an annualized dividend of $1.32 per common share. The dividend is for the period beginning January 1, 2022 through March 31, 2022 and is payable on April 14, 2022 to stockholders of record at the close of business on March 31, 2022.

Full Year 2021 Financial Highlights (comparison to full year 2020)

• Revenue totaled $28.2 million, as compared to $11.7 million.
• Net income attributable to common stockholders totaled $11.2 million, as compared to a net loss of $10.7 million.
• FFO totaled $19.1 million.
• AFFO totaled $21.0 million.

Fourth Quarter 2021 Financial Highlights (comparison to third quarter 2021):

• Revenue totaled $9.0 million, as compared to $8.1 million.
• Net income attributable to common stockholders totaled $4.3 million, as compared to net income attributable to common stockholders of $2.7 million.
• FFO totaled $6.8 million, as compared to FFO of $5.1 million.
• AFFO totaled $7.0 million, as compared to AFFO of $5.9 million.

Portfolio Update:
During the fourth quarter, we funded $6.7 million of previously committed tenant improvement allowances and invested and committed over $50 million into two new properties creating new relationships and further diversification in our portfolio.

In December, we acquired a 70,000-square-foot industrial property in Missouri and entered into a long-term, triple-net lease with Organic Remedies of Missouri (“Organic Remedies”). NewLake’s total investment in the property will be $21.1 million, which includes $16.1 million funded at December 31, 2021 and a commitment to fund $5.0 million of tenant improvement allowances, $3.2 million of which has already been funded subsequent to year end. Organic Remedies operates the property as a cultivation and processing facility.

In October, we provided a $30 million nine-month senior secured loan that is structured to convert to a twenty-year sale leaseback, unless a specific provision in the loan agreement is satisfied prior to July 29, 2022. Hero Diversified Associates, Inc. (“HDAI”), which owns a state-licensed grower and processor of medical marijuana in Pennsylvania, operates the property as a cultivation and processing facility. Collateral for the loan includes a first-lien mortgage on the facility located in Erie, Pennsylvania, as well as other assets of HDAI.

Financial Results:
Rental income for the three months ended December 31, 2021, increased by approximately $4.3 million, to approximately $8.4 million, compared to approximately $4.1 million for the three months ended December 31, 2020. The increase in rental revenue was primarily attributable to:

• The nineteen properties acquired in March 2021 in connection with the Merger, which generated approximately $2.8 million of rental revenue for the three months ended December 31, 2021.
• The pre-merger properties which generated an increase of approximately $69,000 for the three months ended December 31, 2021.
• The three properties acquired during the second quarter of 2021and one property acquired during the fourth quarter 2021 which generated approximately $1.5 million of rental income in 2021.

Rental income for the year ended December 31, 2021, increased by approximately $15.9 million, to approximately $27.6 million, compared to approximately $11.7 million for the year ended December 31, 2020. The increase in rental revenue was primarily attributable to:

• The nineteen properties acquired in March 2021 in connection with the Merger, which generated approximately $8.5 million of rental revenue in 2021, representing the period from Merger closing on March 17, 2021 to December 31, 2021.
• The three properties we acquired during the second quarter of 2021 and the one property we acquired during the fourth quarter of 2021 generated approximately $3.0 million of rental revenue during the year ended December 31, 2021.
• Rental income from the pre-merger properties generated an increase of approximately $4.9 million of rental income during the year ended December 31, 2021.

Interest Income from the mortgage loan for the year ended December 31, 2021 was approximately $0.6 million, compared to $0 for the year ended December 31, 2020. The increase in Interest Income from the mortgage loan was attributable to the nine-month mortgage loan we entered into during the fourth quarter of 2021.

Net income attributable to common shareholders for the three months ended December 31, 2021, increased to $4.3 million, compared to a net income attributable to common shareholders of $2.9 million for the same period in 2020. Net income attributable to common shareholders for the year ended December 31, 2021, increased to $11.2 million, compared to a net loss attributable to common shareholders of $10.7 million for the same period in 2020. The 2020 net loss was attributable to the internalization of our external manager in July 2020.

On March 15, 2022, the Company declared a first quarter 2022 cash dividend of $0.33 per share of common stock, equivalent to an annualized dividend of $1.32. The dividend is for the period beginning on January 1, 2022 through the end of the first quarter, March 31, 2022 and is payable on April 14, 2022 to stockholders of record at the close of business on March 31, 2022.

FFO and AFFO are supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income attributable to common stockholders to FFO and AFFO and definitions of terms are included at the end of this release.

The following information is provided to assist stockholders with tax reporting requirements related to the tax treatment of common stock distributions declared in 2021.

Stockholders should review the 2021 tax statements received from their brokerage firms or other institutions to ensure that the statements substantially agree with the information provided below. Also, as each stockholder’s tax situation may be different, stockholders are encouraged to consult with their own professional tax advisor with respect to their specific tax treatment of the Company’s dividend distributions.

The Company’s dividend distributions per share of common stock are to be classified for income tax purposes as follows:

Conference Call and Webcast Details:
Management will host a conference call and webcast at 8:30am Eastern Time to discuss its quarterly financial results and answer questions about the Company’s operational and financial highlights for the fourth quarter and full year 2021.

For interested individuals unable to join the conference call, a dial-in replay of the call will be available until March 31, 2022 and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13727566.

About NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 28 cultivation facilities and dispensaries that are leased to single tenants on a triple-net basis, and has provided one loan collateralized by a cultivation facility structured to convert to a sale-leaseback unless specific provisions are met by July 29, 2022. For more information, please visit www.newlake.com.

Forward-Looking Statements
This press release contains “forward-looking statements.” Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “project,” “continue” and similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs and expectations. Forward-looking statements, including statements regarding the timing of settlement and the use of proceeds of the initial public offering, are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, changes in the condition of the U.S. economy and, in particular, the U.S. real estate market.

NEWLAKE CAPITAL PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)

The table below is a reconciliation of net income attributable to common stockholders to FFO and AFFO for the year and three months ended December 31, 2021 and 2020 (in thousands, except share and per share amounts):

We calculate FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”) definition. NAREIT currently defines FFO as follows: net income (loss) (computed in accordance with GAAP) excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by an entity. Other REITs may not define FFO in accordance with the NAREIT definition or may interpret the current NAREIT definition differently than we do and therefore our computation of FFO may not be comparable to such other REITs.

We calculate AFFO by starting with FFO and adding back non-cash and certain non-recurring transactions, including non-cash components of compensation expense and our internalization costs. Other REITs may not define AFFO in the same manner as we do and therefore our calculation of AFFO may not be comparable to such other REITs. You should not consider FFO and AFFO to be alternatives to net income as a reliable measure of our operating performance; nor should you consider FFO and AFFO to be alternatives to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

Contact Information:
Anthony Coniglio
President and Chief Investment Officer
NewLake Capital Partners, Inc.
[email protected]

Investor Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

Media Contact:
McKenna Miller
KCSA Strategic Communications
[email protected]
PH: (212) 896-1254

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.

onsolidated revenue grew 84% to $58.1 million in the fourth quarter and 65% to $188.9 million for the full year

Full year gross margin increased to 51%

Achieved positive Adjusted EBITDA through fiscal 2021, an improvement of $54.1 million over 2020

Secured $150 million credit facility to accelerate optimized strategy

NEW YORK, March 10, 2022 (GLOBE NEWSWIRE) — Acreage Holdings, Inc. (“Acreage”) (CSE:ACRG.A.U, ACRG.B.U), (OTCQX: ACRHF, ACRDF), a vertically integrated, multi-state operator of cannabis cultivation and retailing facilities in the U.S., today reported its financial results for the fourth quarter and full year ended December 31, 2021 (“Q4 2021”).

Fourth Quarter 2021 Financial Highlights

• Consolidated revenue was $58.1 million for Q4 2021, an increase of 84% year-over-year and 21% sequentially.
• Gross margin increased to 48% in Q4 2021 from 46% in Q4 2020.
• Adjusted EBITDA* was $8.5 million in Q4 2021, compared to a loss of $(3.5) million in Q4 2020. Adjusted EBITDA* as a percentage of consolidated revenue was 14.6% for the fourth quarter of 2021.

Full Year 2021 Financial Highlights

• Full year consolidated revenue increased 65% to $188.9 million in 2021 compared to $114.5 million in full year 2020.
• Full year gross margin increased to 51% in 2021 compared to 43% in full year 2020.
• Full year adjusted EBITDA* was $24.6 million in 2021, a $54.1 million improvement compared to a loss of $(29.5) million in full year 2020. Adjusted EBITDA* as a percentage of consolidated revenue was 13.0% for the full year 2021.

Fourth Quarter 2021 Operational Highlights

• Expanded the Company’s strategic footprint with the acquisition of market-leading operations in the state of Ohio, including a 70,000 sq. foot cultivation and processing facility and five operating retail stores.
• Increased cultivation capacity output nearly fourfold at the Egg Harbor facility in New Jersey to support the Company’s own retail network and the rapidly growing wholesale market ahead of the launch of adult-use sales.
• Secured a $150 million long-term debt agreement (“Credit Facility”) on attractive terms to repay existing debt, and fund working capital and future capital projects.

Management Commentary

“Throughout 2021 we focused on transforming our business and I am thrilled with the immense progress and success we achieved,” said Peter Caldini, CEO of Acreage. “Our positive results throughout 2021 were the culmination of our focused efforts to drive profitability, strengthen our balance sheet, and accelerate our growth in our core markets. We have accomplished many key priorities in a short period and are well-positioned to build on this momentum throughout 2022.”

Mr. Caldini continued, “Acreage made significant improvements in profitability during 2021, achieving its first quarter of positive EBITDA and then continuing the trajectory of positive EBITDA each subsequent quarter. In addition to the profitability improvements, Acreage strengthened its balance sheet through the sale of operations in Florida, repaid near-term debt obligations, and secured a $150 million credit facility. Lastly, Acreage accelerated growth in our core markets with the opening of a new retail location in New Jersey, the completion of cultivation expansion projects in Pennsylvania, Illinois, and New Jersey, the opening of an edibles kitchen in Massachusetts, and the acquisition of high-quality operations in California, Maine, and Ohio.”

Mr. Caldini concluded, “Over these last twelve months, we have built a solid foundation on which to scale our business in 2022. We will have a full year of operations in Ohio, California, and Maine, and we are very well established in New Jersey, New York, and Connecticut, which have pending adult-use sales that should drive significant growth in 2022 and beyond. 2021 was a great year for Acreage and we have set the stage to extend this success with the right footprint, operations, and team to continue to grow our business and further drive value for our shareholders.”

Q4 2021 Financial Summary

(in thousands)

Total revenue for Q4 2021 was $58.1 million, an increase of $26.6 million or 84% compared to Q4 2020. The year-over-year growth was primarily driven by the acquisitions of Ohio, California, and Maine operations over the past 12 months, the additional revenue available from the completion of expansions at several of our cultivation facilities, coupled with increased demand and production across various states. This revenue growth was somewhat offset by revenue declines due to divestitures and declines within our operations that are being held for sale. Additionally, total revenue for Q4 2021 improved sequentially by $9.9 million or 21% compared to the third quarter of 2021.

Total gross profit for Q4 2021 was $27.6 million, an increase of $13.1 million or 90% compared to Q4 2020. Growth in revenue and efficiencies achieved at Acreage’s production facilities drove the increase in gross profit. Total gross margin increased to 48% in Q4 2021 compared to 46% in the fourth quarter of 2020.

Total operating expenses for Q4 2021 increased by $13.1 million, or 26% to $63.2 million, from Q4 2020. Excluding equity-based compensation expenses, losses and write-downs, impairments, and depreciation and amortization expenses, all of which are non-cash in nature, total operating expenses for Q4 2021 decreased $0.4 million or 2.0% compared to the corresponding period of fiscal 2020. The rate of increase in operating expenditures was significantly lower than the rate of increase in revenues and is due to Acreage’s expanded operations through growth and acquisitions.

Consolidated EBITDA* for the fourth quarter of 2021 was a loss of $(32.9) million, which was an improvement compared to a consolidated EBITDA* loss of $(36.7) million in the previous year’s comparable period. Adjusted EBITDA* for the fourth quarter of 2021 was $8.5 million, which was a significant improvement compared to Adjusted EBITDA* loss of $(3.5) million in the fourth quarter of 2020 and a sequential improvement from Adjusted EBITDA* of $6.5 million in the third quarter of 2021. Adjusted EBITDA from core operations*, which excludes markets where Acreage has entered into definitive agreements to exit and start-up ventures such as beverages and CBD, was $9.8 million, indicating the Company’s core markets are still being negatively impacted by its non-core operations.

Net loss attributable to Acreage for Q4 2021 was $(40.4) million, compared to $(36.9) million in the fourth quarter of 2020. Revenue growth, gross margin improvements, operating expense reductions, and net gains on disposal of assets all contributed to the net income improvements and were offset by increases in depreciation and amortization expenses and interest charges.

Balance Sheet and Liquidity

Acreage ended the year with $44.3 million in cash and cash equivalents and restricted cash. During Q4 2021, the Company secured a $150 million Credit Facility with a syndicate of lenders. Under the terms of the Credit Facility, $100 million was available for immediate use and a further $50 million is available in future periods under a committed accordion option once certain, predetermined milestones are achieved. Acreage intends to use the proceeds of the Credit Facility to fund expansion initiatives, repay existing debt, and provide additional working capital. As of December 31, 2021, $75 million was drawn under this facility. The remaining current availability under this facility of $25 million, together with cash and cash equivalents and restricted cash on hand of $44.3 million, provides funding of $69.3 million until December 31, 2022, at which time the Company expects the $50 million committed accordion to also be available.

Earnings Call

Management will host a conference call on Friday, March 11, 2022, at 10:00 a.m. ET to discuss the results in detail.

The webcast will be archived and can be accessed via Acreage’s website at investors.acreageholdings.com.

About Acreage Holdings, Inc.

Acreage is a multi-state operator of cannabis ‎cultivation and retailing facilities in the U.S., including the company’s national retail store ‎brand, The Botanist. With its principal address in New York City, Acreage’s wide range of national and regionally available cannabis products include the award-winning The Botanist brand, the premium brand Superflux in Illinois, Massachusetts, and Ohio, the Tweed brand, the Prime medical brand in Pennsylvania, the Innocent brand in Illinois, and others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing, and sale of CBD products throughout the U.S. Since its founding in 2011, Acreage has focused on building and scaling operations to create a seamless, consumer-focused, branded experience. Learn more at www.acreageholdings.com and follow us on Twitter, LinkedIn, Instagram, and Facebook.

Forward Looking Statements

This news release and each of the documents referred to herein contains “forward-looking information” and ‎‎“forward-looking statements” within the meaning of applicable Canadian and United States securities legislation, ‎respectively. All statements, other than statements of historical fact, included herein are forward-looking ‎information, including, for greater certainty, statements regarding the Amended Arrangement, including the likelihood of completion thereof, the ‎occurrence or waiver of the Triggering Event, the satisfaction or waiver of the closing conditions set out in the Arrangement Agreement and other statements with respect to the proposed transactions with Canopy Growth. ‎Often, but not always, forward-looking statements and information can be identified by the use of words such as ‎‎“plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, ‎or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, ‎‎‎“would”, “might” or “will” be taken, occur or be achieved. ‎

Forward-looking statements or information involve known and unknown risks, uncertainties, and other ‎factors which may cause the actual results, performance or achievements of Acreage or its ‎subsidiaries to be materially different from any future results, performance or achievements expressed or ‎implied by the forward-looking statements or 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, but not ‎limited to financing and liquidity risks, and the risks disclosed in the Company’s Annual Report on Form 10-K for the year ended ‎December 31, 2020, ‎dated March 25, 2021 and the Company’s other public filings, in each case filed with the SEC on the EDGAR website at www.sec.gov and with ‎Canadian securities regulators ‎and available on the issuer profile of Acreage on SEDAR at www.sedar.com. Although Acreage has attempted to identify ‎important factors that could cause actual results to differ materially from those contained in forward-looking ‎information, there may be other factors that cause results not to be as anticipated, estimated or intended. ‎

Although Acreage believes that the ‎assumptions and factors used in preparing the forward-looking information or forward-looking ‎statements 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 and forward-looking statements included in this news release are made as of ‎the date of this news release and Acreage does not undertake any obligation to publicly update such ‎forward-looking information or forward-looking statements to reflect new information, subsequent events ‎or otherwise unless required by applicable securities laws.

Neither the Canadian Securities Exchange nor its Regulation Service Provider has reviewed and does not accept ‎responsibility for the adequacy or accuracy of the content of this news release.‎

For more information, contact:

Steve Goertz
Chief Financial Officer
[email protected]

Courtney Van Alstyne
MATTIO Communications
[email protected]

US GAAP FINANCIAL HIGHLIGHTS (UNAUDITED)

⁽¹⁾ Includes a revision to correct net loss per share attributable to Acreage Holdings, Inc. and weighted average shares outstanding related to Q4’20 and FY’20.

*NON-GAAP MEASURES, RECONCILIATION AND DISCUSSION (UNAUDITED)

This release includes Adjusted EBITDA, which is a non-GAAP performance measure that we use to supplement our results presented in accordance with U.S. GAAP. The Company uses Adjusted EBITDA to evaluate its actual operating performance and for planning and forecasting future periods. The Company believes that the adjusted results presented provide relevant and useful information for investors because they clarify the Company’s actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management. Since these measures are not calculated in accordance with U.S. GAAP, they should not be considered in isolation of, or as a substitute for, net loss or our other reported results of operations as reported under U.S. GAAP as indicators of our performance, and they may not be comparable to similarly named measures from other companies.

The Company defines Adjusted EBITDA as net income before interest, income taxes and, depreciation and amortization and excluding the following: (i) income from investments, net (the majority of the Company’s investment income relates to remeasurement to fair value of previously-held interests in connection with our roll-up of affiliates, and the Company expects income from investments to be a non-recurring item as its legacy investment holdings diminish), (ii) equity-based compensation expense, (iii) non-cash impairment losses, (iv) transaction costs and (v) other non-recurring expenses (other expenses and income not expected to recur).

⁽¹⁾ Adjusting items have been reduced by the respective non-controlling interest percentage for the period.

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.

– Continues to Execute on Turnaround Strategy, Reports Sixth Consecutive Quarter of Revenue Growth –

– Completes Strategic Entry into Cannabis Sector; Expects to Launch Portfolio by End of First Quarter 

SEATTLE, March 10, 2022 (GLOBE NEWSWIRE) — Jones Soda Co. (CSE: JSDA, OTCQB: JSDA) (“Jones Soda” or the “Company”), the original craft soda company known for its unconventional flavors and user-designed label artwork, announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Financial Highlights vs. Year-Ago Quarter

• Revenue increased 18% to $2.9 million compared to $2.5 million.
• Gross profit as a percentage of revenue increased 260 basis points to 26.5% compared to 23.9%.
• Net loss was $1.3 million, or $(0.02) per share, compared to a net loss of $0.9 million, or $(0.01) per share.
• Adjusted EBITDA¹ was $(1.2) million compared to $(0.8) million. Adjusted EBITDA included approximately $0.4 million in cannabis-related expenses during the fourth quarter of 2021.

Full Year 2021 Financial Highlights vs. Prior Year

• Revenue increased 24% to $14.8 million compared to $11.9 million.
• Gross profit as a percentage of revenue increased 720 basis points to 29.7% compared to 22.5%.
• Net loss improved to $1.8 million or $(0.03) per share, compared to a net loss of $3.0 million, or $(0.05) per share.
• Adjusted EBITDA¹ improved to $(1.3) million compared to $(2.6) million. Adjusted EBITDA included approximately $0.4 million in cannabis-related expenses during the fourth quarter of 2021.

Management Commentary

“2021 was a transformative year spearheaded by strategic partnerships and increased sales across all channels,” said Mark Murray, President and CEO of Jones Soda. “We made great progress expanding our base business across multiple channels, while continuing to focus on our unique labels to increase consumer awareness. We exceeded internal expectations and completed the first year of our three-year turnaround plan with 24% year-over-year revenue growth, a gross profit margin improvement of 720 basis points, and heightened national awareness.

“From a marketing standpoint, the revival of our Turkey and Gravy soda after a ten-year hiatus was an enormous success during the fourth quarter garnering $7.5 million in ad value and over 1.3 billion online impressions. We believe these engagement levels are a testament to the power and community of the Jones Soda brand. Jones has always been known for thinking outside of the box, creating engaging labels, and experimenting with flavors. During the quarter we also announced a key retail expansion with Meijer. It had been five years since Jones products had been in Meijer stores and we are proud of our achievement to have Jones Soda reintroduced to the large retailer across 210 stores in six Midwest states.

“Subsequent to the end of the year, we announced multiple partnerships with celebrities and companies, including professional boxer Mike Tyson and Wesana Health to launch a line of Nootropic supplements, UFC Women’s Bantamweight Champion Julianna Peña to raise our brand profile, and The ICEE Company as part of our Special Release Program. Additionally, we are planning to launch our cannabis portfolio by the end of Q1 and expect it will be an immediate hit with consumers as we leverage the strength and community of the Jones Soda brand.

“Looking at where we sit today, 2022 has started off strong. In conjunction with our expected strategic entry into the cannabis sector, we recently listed on the Canadian Securities Exchange as we look to increase the liquidity of our shares and appeal to a broader investor base. We are also making strides expanding distribution within the club channel, foodservice channel, and alternative channels. Operationally, we continue to work with our supply chain partners to navigate the challenging business environment and we’ve been able to increase prices to offset some of the cost impacts. With our solid foundation in place, we believe we are just getting started on our turnaround. In fact, we expect for this momentum of revenue growth to continue into 2022.”

Fourth Quarter 2021 Financial Results

Revenue in the fourth quarter of 2021 increased 18% to $2.9 million compared to $2.5 million in the prior year period. The revenue growth was primarily attributable to the continued sales momentum of Jones’ core bottled soda products.

Gross profit as a percentage of revenue increased 260 basis points to 26.5% for the fourth quarter of 2021 compared to 23.9% in the year-ago period. The improvement in gross profit margin reflects the Company’s continued shift to a more favorable product mix.

Net loss for the fourth quarter of 2021 was $1.3 million, or $(0.02) per share, compared to a net loss of $0.9 million, or $(0.01) per share, in the fourth quarter of 2020. The increase in net loss was primarily attributable to the added operating expenses related to the Company’s expected strategic entry into the cannabis sector, which were approximately $0.4 million in the fourth quarter of 2021.

Adjusted EBITDA¹ in the fourth quarter of 2021 was $(1.2) million compared to $(0.8) million the prior year period.

Full Year 2021 Financial Results

Revenue in 2021 increased 24% to $14.8 million compared to $11.9 million in 2020. The revenue growth was primarily driven by the Company’s continued execution of its turnaround plan and increased sales of its core bottled soda products.

Gross profit as a percentage of sales increased 720 basis points to 29.7% in 2021 compared to 22.5% in 2020. The improvement was driven mostly by the favorable product mix shift and cost optimization efforts throughout the year.

Net loss improved to $1.8 million, or $(0.03) per share, in 2021 compared to a net loss of $3.0 million, or $(0.05) per share, in 2020.

Adjusted EBITDA¹ in 2021 improved to $(1.3) million compared to $(2.6) million in 2020.

At December 31, 2021, cash and cash equivalents totaled $4.7 million compared to $5.9 million at September 30, 2021, and $4.6 million at December 31, 2020. Apart from the $3 million in aggregate principal amount of its currently outstanding convertible debt instruments issued in February 2022, the Company does not have any substantial debt and continues to actively evaluate a new line of credit. Subsequent to year-end, the Company raised $11.0 million in concurrent financials in connection with its acquisition of Pinestar Gold as part of the Company’s planned strategic entry into the cannabis sector.

________________
¹ Adjusted EBITDA is defined as net income (loss) from operations before interest expense, interest income, taxes, depreciation, amortization and stock-based compensation and is a non-GAAP measure (reconciliation provided below).

Conference Call

Jones Soda will hold a conference call today at 4:30 p.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2021.

Date: March 10, 2022
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-888-204-4368
International dial-in number: 1-323-994-2093
Conference ID: 1913157

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 Gateway Investor Relations at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the Company’s website at www.jonessoda.com.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through March 17, 2022.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1913157

Presentation of Non-GAAP Information

This press release contains disclosure of the Company’s Adjusted EBITDA and Adjusted EBITDA for core soda business, which are not United States Generally Accepted Accounting Principle (“GAAP”) financial measures. The difference between Adjusted EBITDA (a non-GAAP measure) and Net Loss (the most comparable GAAP financial measure) is the exclusion of interest expense and income, income tax expense, depreciation and amortization expense and stock-based compensation. We have included a reconciliation of Adjusted EBITDA to Net Loss in our Non-GAAP Reconciliation in this press release. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. These Adjusted EBITDA measures have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. In addition, because Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. We believe that these Adjusted EBITDA measures provide useful information to investors about the Company’s results attributable to operations, in particular by eliminating the impact of non-cash charges related to stock-based compensation, amortization and depreciation that is consistent with the manner in which we evaluate the Company’s performance. These adjustments to the Company’s GAAP results are made with the intent of providing a more complete understanding of the Company’s underlying operational results and provide supplemental information regarding our current ability to generate cash flow. These non-GAAP financial measures are not intended to be considered in isolation or as a replacement for, or superior to net loss as an indicator of the Company’s operating performance, or cash flow, as a measure of its liquidity. These Adjusted EBITDA measures should be reviewed in conjunction with Net Loss as calculated in accordance with GAAP.

About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co.® (CSE: JSDA, OTCQB: JSDA) markets and distributes premium beverages under the Jones® Soda and Lemoncocco® brands. A leader in the premium soda category, Jones Soda is made with pure cane sugar and other high-quality ingredients, and is known for packaging that incorporates ever-changing photos sent in from its consumers. Jones’ diverse product line offers something for everyone – pure cane sugar soda, zero-calorie soda and Lemoncocco non-carbonated premium refreshment. Jones is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts. For more information, visit www.jonessoda.com or www.myjones.com or www.drinklemoncocco.com.

Forward-Looking Statements Disclosure

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing words such as “will,” “aims,” “anticipates,” “becoming,” “believes,” “continue,” “estimates,” “expects,” “future,” “intends,” “plans,” “predicts,” “projects,” “targets,” or “upcoming.” Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could affect the Company’s actual results, including its financial condition and results of operations and its ability to continue as a going concern, include, among others: its ability to successfully execute on its growth strategies and operating plans for the future; the Company’s ability to continue to effectively utilize the proceeds from its recent financings, including its recent debenture financings, and from the Company’s recently completed plan of arrangement; the Company’s ability to recognize the anticipated benefits of the transactions contemplated by its plan of arrangement; the Company’s ability to execute its plans to develop and market THC/CBD-infused and/or cannabis-infused beverages and edibles, and comply with the laws and regulations governing cannabis, hemp or related products, and the timing and costs of the development of these new product lines; the Company’s ability to manage operating expenses and generate sufficient cash flow from operations; the Company’s ability to create and maintain brand name recognition and acceptance of its products; the Company’s ability to adapt and execute its marketing strategies, especially in light of the restrictions caused by the COVID-19 pandemic; the Company’s ability to compete successfully against much larger, well-funded, established companies currently operating in the beverage industry generally and in the craft beverage segment specifically; the Company’s ability to respond to changes in the consumer beverage marketplace, including potential reduced consumer demand due to health concerns (including obesity) and legislative initiatives against sweetened beverages (including the imposition of taxes); its ability to develop and launch new products and to maintain brand image and product quality; the Company’s ability to maintain and expand distribution arrangements with distributors, independent accounts, retailers or national retail accounts; its ability to manage inventory levels and maintain relationships with manufacturers of its products; its ability to maintain a consistent and cost-effective supply of raw materials and flavors and manage the impact of the COVID-19 pandemic and other factors on its supply chain; its ability to attract, retain and motivate key personnel; its ability to protect its intellectual property; the impact of future litigation and the Company’s ability to comply with applicable regulations; its ability to maintain an effective information technology infrastructure, fluctuations in freight and fuel costs; the impact of currency rate fluctuations; its ability to access the capital markets for any future equity financing and to manage the impact that the COVID-19 pandemic may have on the Company’s ability to access capital; the Company’s ability to maintain disclosure controls and procedures and internal control over financial reporting; dilutive and other adverse effects from future potential securities issuances; and any actual or perceived limitations by being traded on the OTCQB Marketplace. More information about factors that potentially could affect the Company’s operations or financial results is included in its most recent annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on March 24, 2021 and in the other reports filed with the SEC since that that date. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, the Company undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

Company Contact:

Mark Murray
President and CEO
1-206-624-3357

Investor Relations Contact

Cody Cree
Gateway Group
1-949-574-3860
[email protected]

JONES SODA CO.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)

JONES SODA CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED

JONES SODA CO.
NON-GAAP RECONCILIATION
(Unaudited, in thousands)

Adjusted EBITDA

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.

• Positive Net Income of $0.43M, before fair value adjustments
• Q4 2021 Revenue of $3.76M versus $3.03M in Q3 2021, an increase of 24%
• Q4 2021 aEBITDA¹ margin of 30% ($1.14M), versus 25% ($0.77M) in Q3 2021, an increase of 48% ($0.37M)
• Michigan operations (through Golden Harvests, LLC) report industry leading gross margin of 72% and aEBITDA¹ margin of 52%, before fair value adjustments
• Top performing Oregon brand in both August and October, according to LeafLink

MEDFORD, Ore., January 05, 2022–(BUSINESS WIRE)–Grown Rogue International Inc. (“Grown Rogue” or the “Company”) (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, reports unaudited fourth quarter results. All financial information is provided in U.S. dollars unless otherwise indicated.

Fourth Quarter 2021 Financial Summary

• Eighth consecutive quarter, including pro-forma results, of positive aEBITDA¹
• Revenue of $3.76M compared to $3.03M in the Q3 2021, an increase of 24%
• Gross margin, before fair value adjustments, of 62.4% compared to 59.1% in the third quarter, an increase of >300 basis points
• aEBITDA margin of 30.4% ($1.14M) compared to 25.5% ($0.77M) in Q3 2021, an increase of 48% ($0.37M)
• Operating income, before fair value adjustments, of $0.73M compared to $0.26M in the Q3 2021, an increase of 177%
• Operating margin of 19.5% compared to 8.7% in the third quarter, an increase of >1000 basis points compared to Q3 2021
• Net income, before fair value adjustments, of $0.43M
• Working capital of $2.94M compared to $1.85M in Q3 2021
• Net assets (excluding intangibles and goodwill) of $6.82M compared to $5.55M in Q3 2021
• Subsequent to quarter-end, Grown Rogue closed a private placement for gross proceeds of $1.3M USD including $0.3M from the Company’s chief executive officer, Obie Strickler

“Grown Rogue continues to execute on our growth plan, increasing revenue by 24% and aEBITDA by 48% sequentially. The company gained market share in both Oregon and Michigan as our customers and retail partners value our quality, consistency, and service. Our 24% revenue growth vs market headwinds on the west coast (Oregon sales down 7%) validates the strength in our products and our team” said Obie Strickler, CEO of Grown Rogue. “Even with the significant pricing pressure being experienced across the sector affecting many of our peers, Grown Rogue’s continued industry leading metrics speak to our efficiency and discipline with managing costs. We are excited to enter 2022 where we expect to continue building our low-cost, high-quality flower business and launch some new products into our markets.”

Highlights by State

Oregon Operations

• Revenue of $1.62M compared to $1.28M in the Q3 2021, an increase of 27%
• Indoor revenue of $1.57M compared to $1.06M in Q3 2021, an increase of 48%
• Gross margin, before fair value adjustments, of 49.4% compared to 40.2% in Q3 2021, an increase of >900 basis points
• Segmented aEBITDA¹ margin of 44.7% compared to 7.9% in the third quarter
• Average selling price of indoor whole flower of $858/pound compared to $1,079/pound in Q3 2021, a decrease of 20%
• Indoor production run rate expected to increase from 700 pounds/month in Q4 2021 to 1000 pounds/month in the Q2 2022
• Harvested ~3% of Oregon’s total indoor wet weight with only ~0.3% of producer licenses in the state

Michigan Operations

• Revenue of $2.14M compared to $1.75M in the Q3 2021, an increase of 22%
• Gross margin, before fair value adjustments, of 72.3% compared to 73.0% in Q3 2021
• Segmented aEBITDA ¹ margin of 52.1% compared to 54.8% in the Q3 2021
• Average selling price of indoor whole flower of $1740/pound compared to $2077/pound in Q3 2021, a decrease of 16%
• Indoor production run rate expected to increase from 550 pounds/month in Q4 2021 quarter to 750 pounds/month in Q2 2022
• Improved wholesale position in bulk flower sales in 2021 from 20^th in the Q2 2021 to 16^th in the Q3 2021 to 10^th in Q4 2021, according to LeafLink’s MarketScape data
• Expect state market share to increase in fiscal 2022 as additional cultivation capacity comes online and the Company enters new product categories

The financial information in this release is preliminary and subject to completion of Grown Rogue’s year-end financial reporting processes and audit. Grown Rogue expects to file its fiscal year 2021 in February 2022.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight-based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown and indoor premium flower, along with nitro sealed indoor and sungrown pre-rolls and jars.

NOTES:

1. The Company’s “aEBITDA” is a non-IFRS measure used by management that does not have any prescribed meaning by IFRS and that may not be comparable to similar measures presented by other companies. The Company defines aEBITDA as the Company’s net income (loss) for a period, as reported, before interest, taxes, depreciation and amortization, and is further adjusted to remove transaction costs, stock-based compensation expense, accretion expense, gain (loss) on derecognition of derivative liabilities and the effects of fair-value accounting for biological assets and inventory. The Company believes that this is a useful metric to evaluate its operating performance.

2. The Company has provided Cash Margin Analysis to demonstrate the methodology for calculating its non-IFRS production cost and margin metrics. Cash production costs of Grown Rogue products is calculated by taking the cost of finished cannabis inventory sold and deducting non-cash production costs, packaging and distribution costs, inventory write-offs and adjustments, and cost of products purchased from other Licensed Producers that were sold. Cash cost of sales per gram of dried cannabis sold is calculated by taking cash production costs of Grown Rogue products by total grams of dried cannabis sold in the period. Management believes these measures provide useful information as they remove noncash amortization and packaging costs and provide a benchmark of the Company against its competitors.

3. The Company has provided unaudited pro-forma revenue information, which assumes that closed and pending mergers and acquisitions in 2020 are included in the Company’s financial results as of the beginning of the quarterly and annual periods in 2020 for the Company and target companies.

NON-IFRS FINANCIAL MEASURES

Cash production costs of Grown Rogue products, EBITDA and aEBITDA are non-IFRS measures and do not have standardized definitions under IFRS. The Company has also provided unaudited pro-forma financial information, which assumes that closed and pending mergers and acquisitions in 2020 are included in the Company’s financial results as of the beginning of the quarterly and annual periods in 2020. The Company has provided the non-IFRS financial measures, which are not calculated or presented in accordance with IFRS, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. These supplemental non-IFRS financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-IFRS financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein. Accordingly, the following information provides reconciliations of the supplemental non-IFRS financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS.

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight-based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown and indoor premium flower, along with nitro sealed indoor and sungrown pre-rolls and jars.

FORWARD-LOOKING STATEMENTS

This press release contains statements which constitute “forward‐looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities. Forward‐ looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) statements regarding the future direction of the Company (ii) the ability of the Company to successfully achieve its business and financial objectives, (iii) plans for expansion of the Company into Michigan and securing applicable regulatory approvals, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward‐looking information is not based on historical facts but instead reflect the Company’s management’s expectations, estimates or projections concerning the business of the Company’s future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward‐looking information are the following: changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that the Company operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws; compliance with extensive government regulation and related costs, and other risks described in the Company’s public disclosure documents filed on www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward‐looking information except as otherwise required by applicable law.

SAFE HARBOR STATEMENT

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements publicly, 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. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the Company’s Form 20-F and 6-K filings with the Securities and Exchange Commission.

The Company is indirectly involved in the manufacture, possession, use, sale and distribution of cannabis in the recreational cannabis marketplace in the United States through its indirect operating subsidiaries. Local state laws where its subsidiaries operate permit such activities however, these activities are currently illegal under United States federal law. Additional information regarding this and other risks and uncertainties relating to the Company’s business are disclosed in the Company’s Listing Statement filed on its issuer profile on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

For further information on Grown Rogue International please visit www.grownrogue.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220105005280/en/

Contacts

Obie Strickler
Chief Executive Officer
[email protected]

Investor Relations Desk Inquiries
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(458) 226-2100

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.