Revenue growth – MJ Shareholders https://mjshareholders.com The Ultimate Marijuana Business Directory Tue, 30 May 2023 17:51:39 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 Adastra Holdings Reports First Quarter Results; Demonstrating Record Quarterly Gross Revenues of $9.5M https://mjshareholders.com/adastra-holdings-reports-first-quarter-results-demonstrating-record-quarterly-gross-revenues-of-9-5m/ Tue, 30 May 2023 17:51:39 +0000 https://cannabisfn.com/?p=2973449

Ryan Allway

May 30th, 2023

News, Top News


  • Record Q1 2023 gross revenues of $9.5M, increase of 315% from Q1 2022
  • Record Q1 2023 cash provided by operations of $1.5M, compared to $104K in Q1 2022
  • Q1 2023 gross profit of $1.7M, increase of 102% from Q1 2022

LANGLEY, BC / ACCESSWIRE / May 30, 2023 / Adastra Holdings Ltd. (CSE:XTRX) (FRA:D2EP) (“Adastra” or the “Company“), a leading cannabis processor and producer of two top Canadian concentrates brands, with a focus on product innovation and commercialization for adult-use and medical markets, is pleased to report financial results for the three months ended March 31, 2023.

“Our triple-digit revenue growth from Q1 2022 as compared to Q1 2023 is a testament to the robust market demand for our exceptional products and our strong presence across Canada,” said Michael Forbes, Chief Executive Officer. “Our ownership of both the legendary legacy brand, Phyto Extractions, and the dynamic in-house brand, Endgame Extracts, has solidified our position in the Canadian concentrate market with numerous top-selling products.”

“I am immensely proud of our team’s innovative mindset and unwavering dedication, which have been instrumental in our accomplishments. Their hard work and creativity have been the driving force behind our remarkable results,” added Forbes. “Together, we are poised to continue pushing boundaries and fueling future growth, all with the ultimate goal of creating long-term value for our customers, partners, and shareholders.”

Key Q1 2023 Financial Highlights

  • Gross revenues of $9.5M in Q1 2023, compared to $2.3M in Q1 2022, representing an increase of 315%, demonstrating strong demand for Adastra’s cannabis concentrate brands and products.
  • Gross revenues experienced a 39% increase from Q4 2022 to Q1 2023.
  • Operating expenses as a percentage of gross revenues decreased from 74% in Q1 2022 to 20% in Q1 2023.
  • Q1 2023 cash position increased to $1.9M from operations, an increase of $922K from Q4 2022.
  • Inventory levels increased to $4.3M at March 31, 2023, due to the recent buyback of Phyto Extractions inventory. These elevated inventory levels are expected to translate to revenue in future periods.
  • Operating expenses increased only 11% from $1.7M during Q1 2022 to $1.9M during Q1 2023 which reflects the Company’s ability to maintain consistent operation costs while experiencing triple digit revenue growth.

Key Q1 2023 Corporate and Business Highlights

  • In-house brand, Endgame Extracts ranks 3rd, 4th & 5th of the best-selling concentrates in British Columbia, according to Headset1.
  • In-house brand, Endgame Extracts ranks 2nd, 3rd, 4th, & 5th of the best-selling concentrates in Alberta, according to Headset1.
  • In Q1 2023, new SKUs for in-house brands were accepted for listing in: Ontario – 19; Alberta – 20; Nova Scotia – 1; and Newfoundland – 1.

“With another quarter of record gross revenues, we are more excited than ever with what our team is capable of,” said Lachlan McLeod, Chief Financial Officer. “During the quarter, we incurred higher costs to fuel the record gross revenues and we will continue to work on streamlining the growth as we drive Adastra to future profitability.”

Financial Statements & Management’s Discussion and Analysis

This news release should be read in conjunction with Adastra’s interim financial statements and corresponding MD&A for the three months ended March 31, 2023, which can be found on Adastra’s issuer profile on SEDAR at www.sedar.com.

1 Source: Headset Data, May 30, 2023

About Adastra Holdings Ltd.

Adastra has become one of Canada’s leaders in the supply and manufacturing of ethnobotanical and cannabis products for lawful adult-use. It serves medical markets and engages in forward-looking therapeutic applications. With cannabis concentrate products sold through retailers at more than 1,600 locations across Canada, Adastra’s Phyto Extractions and Endgame Extracts brands are now well established with a solid distribution presence. As a Health Canada licensed facility, it specializes in extraction, distillation and manufacturing of a range of cannabis-derived products. Adastra partners with healthcare professionals and practitioners within the regulated environment to create products suitable for the medical cannabis market, with the ultimate aim of addressing the needs of patients. For more information, visit: www.adastraholdings.ca.

Contacts

Michael Forbes, CEO, Corporate Secretary & Director
(778) 715-5011
michael@adastraholdings.ca

Investor Relations
ir@adastraholdings.ca

Forward-Looking Information

This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to the expectation for future growth, the anticipation of creating long-term value for customers, partners and shareholders, the expectation that increased inventory levels will translate into revenue in future periods and the intention to work on streamlining growth as the Company drives toward future profitability. There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in regulations or licensing affecting the Company’s business; reduced demand for cannabis and cannabis related products; reductions in the Company’s retail space and store locations; changes in consumer brand preferences; and other factors beyond the control of the Company. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

SOURCE: Adastra Holdings Ltd.

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

About Ryan Allway

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


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Flora Growth Reports 2022 Year-End Financial Results: $37.2M in Revenue, 314% Growth Year-Over-Year https://mjshareholders.com/flora-growth-reports-2022-year-end-financial-results-37-2m-in-revenue-314-growth-year-over-year/ Fri, 31 Mar 2023 17:05:48 +0000 https://cannabisfn.com/?p=2972935

Ryan Allway

March 31st, 2023

News, Top News, Top Story


  • Flora generated $37.2 million in revenue in FY2022, a 314% increase YoY
  • Record Q4 2022 revenue increased to $11.5 million, a 7% sequential increase from Q3 2022
  • Gross profit for FY2022 increased by 494%, from $2.4 million to $14.4 million YoY
  • Company reaffirms its 2023 revenue guidance to range between $90 million – $105 million
  • Flora management to host a webcast Monday, April 3, at 8:00 am ET

FORT LAUDERDALE, Fla., March 31, 2023–(BUSINESS WIRE)–Flora Growth Corp. (NASDAQ: FLGC) (“Flora” or the “Company”), a leading cultivator, manufacturer and distributor of global cannabis products and brands, reported today its financial and operating results for the fiscal year ended December 31, 2022. All financial information is provided in U.S. dollars unless indicated otherwise.

“In 2022, we not only met our revenue guidance but reported both quarterly and annual record revenue. This accomplishment was thanks to the successful completion and integration of our M&A transactions, the compelling value proposition of our products in our House of Brands and the operational milestones we achieved throughout the year,” said Luis Merchan, Chairman and CEO of Flora. “It is important to note that we have accomplished all this despite having to navigate one of the most hostile business environments to date, especially for the cannabis industry. Nonetheless, we achieved both quarterly and annual record revenue, improved margins and increased our gross profits – all while cutting costs and improving operational efficiencies.”

“Today, I remain more confident than ever in Flora’s opportunity to not only be one of the largest players in the international cannabis industry but to change the global landscape of cannabis. I am proud to reaffirm the 2023 revenue guidance we shared earlier in the year of between $90 million and $105 million,” Merchan added.

FY2022 Financial Highlights

  • For the FY2022, Flora generated $37.2 million in revenue, a 314% increase year-over-year. This was primarily driven by the House of Brands businesses. Additionally, in Q4 2022, revenue was $11.5 million, a 7% sequential increase from Q3 2022, driven primarily by organic growth.
  • Gross profit for FY2022 increased by 494% year-over-year to $14.4 million.
  • Gross margin improved year-over-year from 27% in FY2021 to 39% FY2022.
  • Adjusted EBITDA loss for FY2022 was $18.3 million, up from $16.5 million in FY2021.
  • Adjusted EBITDA margin for FY2022 improved to -49.3% from -184.2% in FY2021.
  • Net loss for FY2022 was $52.6 million as compared to $21.4 million for FY2021 and net loss margin for FY2022 improved to -141.6% from -237.9% in FY2021.
  • FY2022 capex decreased to $1.3 million from $4 million in the prior year. This decrease was primarily driven by the completion of larger projects in 2021, such as the build-out of the Company’s Colombian cannabis production facility, Cosechemos, while 2022 capital expenditures included smaller-scale projects focused on realizing operations at Cosechemos and Flora’s labs.
  • Operating expenses for FY2022 were $67.7 million, of which almost half were due to non-cash charges, including an impairment charge of $26.2 million as well as depreciation and amortization, purchase price allocation, and share-based compensation charges.
  • As a percentage of sales, operating expenses for 2022 decreased from 239% in FY2021 to 182% in FY2022.
  • As of December 31, 2022, the Company had approximately $9.5 million in cash and cash equivalents as compared to $37.6 million as of December 31, 2021.

Adjusted EBITDA loss and Adjusted EBITDA margin are non-U.S. GAAP figures. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures has been provided in the section titled “About Non-GAAP Financial Measures”. Important disclosures regarding the use of non-U.S. GAAP supplemental financial measures are also included below.

2023 Outlook

  • Flora’s 2023 revenue guidance of $90 million to $105 million reflects expected organic growth in the House of Brands division and expansion of the Commercial and Wholesale division’s capabilities.
  • House of Brands and Commercial and Wholesale divisions expect roughly equal contributions to total revenue, while the Pharmaceutical division is expected to contribute up to 10% of total revenue.
  • Flora continues to evaluate future M&A transactions that align with the goal of creating one of the world’s largest end-to-end cannabis supply chains.
  • The Company furthered its commitment to organizational and financial efficiencies, implementing internal cost controls and focusing on high-margin revenue generation.

Recent Operational Highlights

  • Acquired Franchise Global Health (FGH), an international cannabis company with primary operations in Germany.
  • Flora’s House of Brands saw an increase in customer base to approximately 500,000 consumers and expanded distribution to over 14,000 doors.
  • Became a domestic reporter with respect to Securities and Exchange Commission (the “SEC”) filings under the Exchange Act of 1934, as amended (the “Exchange Act”) and transitioned to financial reporting under U.S. Generally Accepted Accounting Principles (“U.S. GAAP”).
  • JustCBD achieved record-breaking sales during the Black Friday Sales Event in 2022, making it the most successful sales event in the Company’s history.
  • Completed construction of Bogota, Colombia-based Flora Lab 4, a laboratory specializing in prescription cannabis formulations.
  • As a result of the FGH acquisition, Flora appointed former FGH CEO Clifford Starke as President of Flora and member of the Board of Directors and former FGH Chief Operating Officer Edward Woo as a member of the Board of Directors.
  • Completed its first extraction of CBD isolate through Flora Lab 1, and successful importation to the United States.
  • Received 2022 export quota from the Colombian government for 43,600kg of high-THC cannabis.
  • Colombian government released regulations allowing for THC export, with export to partners beginning in Q4 2022 – broadening the Company’s opportunity for international export.
  • Awarded best M&A transaction at Benzinga Capital Conference for the acquisition of JustBrands.

Earnings Call: April 3, 2023, at 8:00AM ET

Live Webcast Details

Date: Monday, April 3, 2023

Time: 8:00 a.m. ET

Online Participant Link: https://us02web.zoom.us/webinar/register/WN_Y0I1RwIISN6Y2sn8I5QEYQ

After registering, you will receive a confirmation email containing information about joining the webinar.

The live webcast will be available online through the above participant link and will be archived and available on the investor page of the Company’s website within approximately 24 hours, until April 2024.

About Flora Growth Corp.

Flora Growth Corp. is a global cannabis company dedicated to bringing the benefits of cannabis to people worldwide. Our commitment is to create, master and connect the international cannabis supply chain by setting the standard for world-class cultivation and manufacturing, thoughtful brand development, and rigorous research and development of medical-grade cannabis products that meet the highest standards of quality, safety, and efficacy. Our mission is to create a world where the benefits of cannabis are accessible to everyone, and we are working toward that goal by becoming a leading importer and exporter of cannabis to meet demand in every corner of the market. Visit www.floragrowth.com or follow @floragrowthcorp on social media for more information.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains ‘‘forward-looking statements,’’ as defined by federal securities laws. Forward-looking statements reflect Flora’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in Flora’s Annual Report on Form 10-K for year ended December 31, 2022 filed with the SEC on March 31, 2023, as such factors may be updated from time to time in Flora’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and under the Company’s SEDAR profile at www.sedar.com. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora’s filings with the SEC. While forward-looking statements reflect Flora’s good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Flora (or to third parties making the forward-looking statements).

About NonU.S. GAAP Measures

Adjusted EBITDA is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA as total net loss, plus (minus) income taxes (benefit), plus (minus) interest expense (income), plus depreciation and amortization, plus (minus) non-operating expense (income), plus share based compensation expense, plus goodwill and other asset impairment charges, plus (minus) unrealized loss (gains) from changes in fair value, plus charges related to the flow-through of inventory step-up on business combinations, plus other acquisition and transaction costs. Management believes that Adjusted EBTIDA provides meaningful and useful financial information as this measure demonstrates the operating performance of the business.

Adjusted EBITDA margin % is a non-U.S. GAAP financial measure that does not have any standardized meaning prescribed by U.S. GAAP and may not be comparable to similar measures presented by other companies. We calculate Adjusted EBITDA margin % as Adjusted EBITDA, as described above, divided by revenue for the period.

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below:

Management believes that this non-U.S. GAAP financial information is useful as a supplement to comparable U.S. GAAP financial information. Management reviews these non-U.S. GAAP financial measures on a regular basis and uses them, together with financial measures included in the Company’s financial statements, to evaluate and manage the performance of the Company’s operations. These measures should be evaluated in conjunction with the comparable U.S. GAAP financial numbers reported by the Company.

Table 1. Consolidated Statements of Financial Position

Consolidated Statements of Financial Position
(in thousands of United States dollars, except share amounts which are in thousands of shares)
As at: December 31, 2022 December 31, 2021
ASSETS
Current
Cash $ 9,537 $ 37,614
Restricted cash 2
Trade and amounts receivable, net of $2,988 allowance ($1,252 at 2021) 6,851 5,324
Loans receivable and advances 271 273
Prepaid expenses and other current assets 978 1,700
Indemnification receivables 3,429
Inventory 10,089 3,030
Total current assets 31,155 47,943
Non-current
Property, plant and equipment 4,810 3,750
Operating lease right of use assets 2,537 1,229
Intangible assets 18,096 9,736
Goodwill 23,372 20,054
Investments 730 2,670
Other Assets 287 97
Total assets $ 80,987 $ 85,479
LIABILITIES
Current
Trade payables $ 7,748 $ 2,415
Contingencies 5,044 2,033
Current portion of debt 1,086 18
Current portion of operating lease liability 1,188 412
Other accrued liabilities 2,381 1,241
Total current liabilities 17,447 6,119
Non-current
Non-current operating lease liability 1,869 908
Deferred tax 1,712 1,511
Contingent purchase considerations 3,547
Total liabilities 24,575 8,538
SHAREHOLDERS’ EQUITY
Share capital, no par value, unlimited authorized, 135,573 issued and outstanding (65,517 at 2021)
Additional paid-in capital 150,420 116,810
Accumulated other comprehensive loss (2,732) (1,108)
Deficit (90,865) (38,536)
Total Flora Growth Corp. shareholders’ equity 56,823 77,166
Non-controlling interest in subsidiaries (411) (225)
Total Shareholders’ equity 56,412 76,941
Total liabilities and shareholders’ equity $ 80,987 $ 85,479

Table 2. Consolidated Statements of Loss and Comprehensive Loss

Consolidated Statements of Loss and Comprehensive Loss
(in thousands of United States dollars, except per share amounts which are in thousands of shares)
For the year ended December 31, 2022 For the year ended December 31, 2021
Revenue $37,171 $8,980
Cost of sales 22,757 6,555
Gross profit 14,414 2,425
Operating expenses
Consulting and management fees 11,342 7,324
Professional fees 4,398 4,269
General and administrative 4,495 922
Promotion and communication 8,416 3,585
Travel expenses 1,055 603
Share based compensation 3,404 1,340
Research and development 430 132
Operating lease expense 1,221 316
Depreciation and amortization 2,629 501
Bad debt expense 1,607 1,335
Goodwill impairment 25,452 51
Other asset impairments 783
Other expenses (income), net 2,489 1,050
Total operating expenses 67,721 21,428
Operating loss (53,307) (19,003)
Interest (income) expense (56) 32
Foreign exchange loss 323 79
Unrealized loss from changes in fair value 593 2,345
Net loss before income taxes (54,167) (21,459)
Income tax benefit (1,538) (98)
Net loss for the period $(52,629) $(21,361)
Other comprehensive loss
Exchange differences on foreign operations, net of income taxes of $nil ($nil in 2021) $(1,624) $(1,147)
Total comprehensive loss for the period $(54,253) $(22,508)
Net loss attributable to:
Flora Growth Corp. $(52,415) $(21,249)
Non-controlling interests in subsidiaries (214) (112)
Comprehensive loss attributable to:
Flora Growth Corp. $(54,039) $(22,396)
Non-controlling interests in subsidiaries (214) (112)
Basic and diluted loss per share attributable to Flora Growth Corp. $(0.68) $(0.48)
Weighted average number of common shares outstanding – basic and diluted 76,655 43,954

Table 3. Statement of Cash Flows

Consolidated Statement of Cash Flows
(in thousands of United States dollars)
For the year ended December 31, 2022 For the year ended December 31, 2021
Cash flows from operating activities:
Net loss $ (52,629 ) $ (21,361 )
Adjustments to net loss:
Depreciation and amortization 2,629 501
Stock-based compensation 3,404 1,340
Goodwill impairment 25,452 51
Other asset impairments 783
Changes in fair value of investments and liabilities 593 2,345
Bad debt expense 1,607 1,335
Interest (income) expense (56 ) 84
Interest paid (4 ) (78 )
Income tax expense (benefit) (1,538 ) (98 )
(19,759 ) (15,881 )
Net change in non-cash working capital:
Trade and other receivables 143 (5,688 )
Inventory 1,219 (1,213 )
Prepaid expenses and other assets 1,372 (1,204 )
Trade payables and accrued liabilities 1,090 3,047
Net cash used in operating activities (15,935 ) (20,939 )
Cash flows from financing activities:
Common shares issued 4,551 42,617
Warrants issued 449 8,706
Equity issue costs (520 ) (5,475 )
Exercise of warrants and options 187 12,851
Common shares repurchased (255 )
Loan borrowings 197
Loan repayments (196 ) (302 )
Net cash provided by financing activities 4,413 58,397
Cash flows from investing activities:
Loans Provided (273 )
Loan repayments received 302
Purchases of property, plant and equipment and intangible assets (1,294 ) (3,983 )
Purchase of investments (2,509 )
Business and asset acquisitions, net of cash acquired (14,508 ) (8,087 )
Net cash used in investing activities (15,802 ) (14,550 )
Effect of exchange rate on changes on cash (755 ) (815 )
Change in cash during the period (28,079 ) 22,093
Cash and restricted cash at beginning of period 37,616 15,523
Cash and restricted cash at end of period $ 9,537 $ 37,616
Supplemental disclosure of non-cash investing and financing activities
Common shares issued for business combinations $ 24,712 $ 20,654
Common shares issued for other agreements 1,470 2,507
Operating lease additions to right of use assets 2,919 1,233

Table 4. Reconciliation of GAAP to non-U.S.GAAP financial results

Table 4

Reconciliation of GAAP to non-U.S.GAAP financial results

(In thousands of United States dollars) For the year ended December 31, 2022 For the year ended December 31, 2021
Net loss for the period $ (52,629 ) $ (21,361 )
Income tax expense (benefit) (1,538 ) (98 )
Interest (income) expense (56 ) 32
Depreciation and amortization 2,629 501
Non-operating expense (1) 323 79
Share based compensation 3,404 1,340
Goodwill and asset impairments 26,235 51
Unrealized loss from changes in fair value (2) 593 2,345
Charges related to the flow-through of inventory step-up on business combinations 1,676 342
Other acquisition and transaction costs 1,055 229
Adjusted EBITDA $ (18,308 ) $ (16,540 )
Adjusted EBITDA Margin % -49.3 % -184.2 %
(1) Non-operating expense includes foreign exchange gain (loss).
(2) Unrealized loss from changes in fair value includes changes in the value of the Company’s long-term investment in an early-stage European cannabis company and the value of the Company’s contingent consideration associated with its acquisition of JustCBD.

The reconciliation of the Company’s Adjusted EBITDA, a non-U.S. GAAP financial measure, to net loss, the most directly comparable U.S. GAAP financial measure, for the year ended December 31, 2022 and 2021 is presented in the table below: For a reconciliation of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP financial measures, please see Table 4 under “Reconciliation of GAAP to non-U.S. GAAP financial results” included at the end of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230331005404/en/

Contacts

Investor Relations:
Investor Relations
ir@floragrowth.com

Public Relations:
Cassandra Dowell
+1 (858) 221-8001
flora@cmwmedia.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.


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Marijuana Company of America, Inc. Reports Record First Quarter Revenue and Substantial Quarter-over-Quarter Revenue Growth https://mjshareholders.com/marijuana-company-of-america-inc-reports-record-first-quarter-revenue-and-substantial-quarter-over-quarter-revenue-growth/ Tue, 24 May 2022 16:22:37 +0000 https://www.cannabisfn.com/?p=2948665

Ryan Allway

May 24th, 2022

News, Top News


LOS ANGELES, CA / ACCESSWIRE / May 24, 2022 / Marijuana Company of America, Inc. (OTC PINK:MCOA) (“the Company”), operates, invests, and acquires companies exclusively in the cannabis sector, today announced the financial results for the first quarter ended March 31, 2022.

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

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

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

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

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

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

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

About Marijuana Company of America, Inc.

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

Forward-Looking Statements

This news release contains “forward-looking statements,” which are not purely historical and may include statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs, and results of new business opportunities and words such as “anticipate,” “seek,” “intend,” “believe,” “estimate,” “expect,” “project,” “plan,” or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s” reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic reports filed from time to time with the Securities and Exchange Commission.

For more information, please visit www.marijuanacompanyofamerica.com or visit www.sec.gov.

CONTACT:
[email protected]
[email protected]
888-777-4362

SOURCE: Marijuana Company of America, Inc.

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

About Ryan Allway

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


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Halo Collective Reports 63% Revenue Growth and 345% Cannabis Sales Volume Growth in the Fourth Quarter of 2021 https://mjshareholders.com/halo-collective-reports-63-revenue-growth-and-345-cannabis-sales-volume-growth-in-the-fourth-quarter-of-2021/ Fri, 01 Apr 2022 16:22:38 +0000 https://www.cannabisfn.com/?p=2942548

Ryan Allway

April 1st, 2022

News, Top News


TORONTOApril 1, 2022 /CNW/ – Halo Collective Inc. (“Halo” or the “Company”) (NEO: HALO) (OTCQB: HCANF) (Germany: A9KN) today announced its financial and operational results for the fourth quarter (“Q4 2021”) and full year ended December 31, 2021 (“FYE 2021”).

www.haloco.com (CNW Group/Halo Collective Inc.)
www.haloco.com (CNW Group/Halo Collective Inc.)

Fourth Quarter 2021 Financial Highlights:

  • Revenue of $8.4 million, up $3.2 million, or 63%, compared to $5.1 million in Q4 2020.
  • Sales of nearly 13 million grams of cannabis products principally to dispensaries in Oregon and California, a 345% year-over-year increase compared to Q4 2020.
  • Adjusted gross margin1 was $0.8 million, or 9.6% gross margin, compared to $0.5 million, or 10.5% gross margin, in Q4 2020.
  • Adjusted EBITDA1 loss of $7.1 million compared to a loss of $3.7 million in Q4 2020.

Full Year 2021 Financial Highlights:

  • Revenue of $36.2 million, up $14.5 million, or 67%, compared to $21.6 million in 2020.
  • Sales of over 32 million grams of cannabis products principally to dispensaries in Oregon and California, a 381% year-over-year increase compared to 2020.
  • Adjusted gross profit1 was $7.3 million, or 20.1% gross margin, compared to gross profit of $5.2 million, or 24.0% gross margin, in 2020.
  • Adjusted EBITDA1 loss of $23.6 million compared to a loss of $6.9 million in 2020.

“Halo’s team is actively building significant shareholder value, even while the operating conditions remain difficult in the California and Oregon markets and pressuring our near-term financial performance,” said CEO Kiran Sidhu. “In our growing wholesale businesses, volumes are trending upward due to higher sales velocity and expanded market penetration, offsetting much of the downward pressure on prices and positioning us well for when pricing stabilizes. In our retail business, we’ve opened our first Budega™ dispensary in North Hollywood, California, and are seeing solid preliminary results in the first weeks of operation. Meanwhile, we have taken the necessary steps to rationalize the business to accelerate our path to profitability.”

Added Sidhu, “What’s less apparent in the financials is the significant value that we are creating through our incubation efforts within our collective of assets. Take Akanda Corp. as an example. In 2020 we purchased two disparate international cannabis assets, Bophelo Bioscience & Wellness and CanMart and, after completing a reorganization of these assets and putting in place a team, strategy and structure, Halo is now the largest shareholder in this rapidly scaling international medical cannabis company with a stake worth over $100 million based on Akanda’s current market capitalization. We are now assessing other opportunities with respect to Halo’s investments in cannabis businesses ancillary to our West Coast operations, including our investments in CBD and functional beverages, two of the fastest-growing categories in the consumer space that can be widely distributed.”

________________________________

1 See “Non-IFRS Financial Matters” below for more information regarding the non-IFRS financial measures referred to herein.

Incubation Strategy Outlook

In fiscal 2022, Halo is planning to execute a strategy of incubating promising companies within the cannabis industry and the broader wellness space. Akanda Corp. (“Akanda”) is the most advanced in its execution but there are other initiatives at earlier stages underway with the Company’s interests in software, California cultivation, and CBD and functional beverages, that collectively the Company expects will enhance its financial strength.

  • International Cannabis: On November 4, 2021, Halo sold its stake in Bophelo Bioscience & Wellness Pty. Ltd. (“Bophelo”), a Lesotho-based cultivation and processing campus located in the world’s first Special Economic Zone (SEZ) containing a cannabis cultivation operation, and CanMart Ltd. (“CanMart”), a UK-based fully approved pharmaceutical importer, and distributor that supplies pharmacies and clinics within the UK, to Akanda for 13,123,212 common shares of Akanda and a secured convertible debenture in favor of Halo in the principal amount of $6.6 million. As of December 31, 2021, Halo’s financial statements recorded a long-term investment of $10.5 million for its investment in Akanda. Akanda subsequently went public on The Nasdaq Capital Market on March 14, 2022, through an underwritten public offering of four million common shares at a public offering price of $4.00 per share. Halo currently holds 12,674,957 shares of Akanda, which, based on a closing price for Akanda shares of $7.94 on March 31, 2022, values Halo’s stake in Akanda at approximately $101 million.
  • Software: Halo has acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. The Company intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc. (“Halo Tek”) and to complete the distribution of the shares of Halo Tek Inc. to shareholders on record at a date to be determined.
  • California Cultivation: Halo maintains a 44% equity stake in Triangle Canna Corp. (“Triangle Canna”), the holder of 271 provisional licenses from the California Department of Cannabis Control, the state regulator, and which has plans to develop up to 63 acres of cultivation in California in partnership with Halo’s investment partner Green Matter. On November 10, 2021, Halo announced the planned $75 million Regulation A+ financing by Triangle Canna, which is being valued at $165 million prior to the completion of the financing. The financing has been qualified by the U.S. Securities Exchange Commission and is expected to launch in 2022. There can be no certainty as to the timing or success of Triangle Canna’s proposed Regulation A+ financing.
  • CBD and Functional Beverages: Halo is also expanding into other consumer health and wellness categories expected to experience rapid growth in consumer demand, including functional supplements such as nootropic nutraceuticals and CBD gummies. Through the recent acquisition of Simply Sweet, a health-conscious, low-sugar cannabis infused alternative confectionery, the Company has a portfolio of proprietary recipes and formulas to leverage for infused gummy and candy production. The recent acquisition of H2C Beverages, a company focused on cannabinoids and non-psychotropic mushroom functional beverages, and the national distribution and manufacturing agreement with SWAY Energy Corporation (“SWAY”)(formerly Elegance Brands Inc.), provides the Company with brands and a route to market to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms™.

California Retail Rollout Update

Halo’s “Seed to Sale” strategy in California accelerated as the Company delivered on its Los Angeles retail rollout in early 2022. On March 18, 2022, Halo announced that the first Budega dispensary officially opened in the Arts District of North Hollywood, California. This is the first of three Budega stores planned to open in Los Angeles. Located at the northwest corner of Lankershim Boulevard and Hesby Avenue, the store offers a vast product assortment of nearly 1,000 SKUs, including many top-tier California brands. In addition, the Company plans to launch retail delivery, which is expected to increase top-line sales and help capture overall market share.

Management anticipates opening stores in Westwood and Hollywood during in the spring and summer of 2022. Opening under the Company’s new retail brand, Budega, these stores are expected to meaningfully contribute to net revenue and gross profit.

Fourth Quarter 2021 Financial Results

Revenue
Revenues in Q4 2021 were $8.4 million compared to $5.1 million in Q4 2020, a 63% increase. Total sales were 13.0 million grams (Q4 2020: 2.9 grams), a 345% increase.

Revenue growth was mixed across the Company’s subsidiaries which include ANM Inc. (“ANM”), the owner of the Company’s facility in Oregon; Mendo Distribution and Transportation LLC (“MDT”), the owner of the facility in Ukiah; Coastal Harvest LLC (“Coastal Harvest”), Halo’s extraction facility in California; Halo Winberry Holdings, LLC (“Halo Winberry”), which operates a one-acre grow outside of Eugene, Oregon; and Halo Kushbar Retail Inc., the operator of three retail cannabis stores in the Canadian province of Alberta. ANM reported revenues of $2.4 million, a 40.8% decrease over Q4 2020. MDT reported revenues of $3.0 million, a 104.4% increase over Q4 2020. Coastal Harvest reported revenues of $1.0 million, compared to a reversal of $0.1 million in Q4 2020. Halo Winberry and Halo Kushbar Retail, whose results were not included in Q4 2020, reported revenues of $2.5 million and $0.7 million, respectively.

Gross Profit
The Company reported a gross loss of $1.3 million (Q4 2020: gross loss of $1.2 million). Adjusted for the loss on biological assets and impairments, gross profit was $0.8 million (Q4 2020: $0.5 million), with an adjusted gross margin of 9.6% (Q4 2020: 10.5%).1

Adjusted EBITDA
The Company reported an Adjusted EBITDA loss of $7.1 million compared to a loss of $3.7 million in Q4 2020. 1

Liquidity and Cash Balance
As of December 31, 2021, Halo had available cash in the amount of $1.7 million and approximately $0.1 million in restricted cash.

ANM
In Q4 2021, ANM, the owner of the Company’s facility in Oregon, sold 922,767 grams of shatter, cartridge oil, live resin, tinctures and gummies, flower, and pre-rolls (Q4 2020: 1,438,342 grams), a 35.8% decrease. Sales of oil and extracts were 280,674 grams (Q4 2020: 322,127 grams), a 12.9% decrease. The wholesale price of oils and extracts decreased by 11.4% to $6.45 per gram (Q4 2020: $7.29 per gram). Flower sales in Q4 2021 were 504,233 grams (Q4 2020: 831,986 grams), a 39.4% decrease. The wholesale price of flower decreased by 45.7% to $0.72 per gram (Q4 2020: $1.32 per gram). Pre-roll sales were 96,451 grams (Q4 2020: 161,187 grams), a 40.2% decrease. The wholesale price of pre-rolls increased by 4.0% to $1.85 per gram (Q4 2020: $1.78 per gram).

Halo Winberry
In Q4 2021, Halo Winberry sold 4,429,555 grams of flower, pre-rolls, oil and extracts, and edibles. Halo Winberry sold 995,118 grams of flower at a price of $0.76 per gram, 67,486 grams of pre-rolls at a price of $7.74 per gram, 582,268 grams of oils & extracts at a price of $2.29 per gram, and 60,683 grams of edibles at a price of $0.51 per gram.

MDT
In Q4 2021, the facility owner in Ukiah, MDT, sold 7,278,852 grams of distillate, live resin, gummies, and pre-rolls (Q4 2020: 1,474,621), a 394% increase. MDT sold 26,413 grams of flower at $9.77 per gram (Q4 2020: nil). Pre-roll sales were 7,819 grams (Q4 2020: 4,834 grams), a 61.7% increase, at a wholesale price of $5.16 per gram (Q4 2020 $8.44), a 22.4% increase. Sales of trim & fresh frozen were 6,930,106 grams (Q4 2020: 1,207,871), a 473.7% increase, at a wholesale price of $0.05 per gram (Q4 2020: $0.11), a 51.9% decrease. Sales of oil and extracts were 301,755 grams (Q4 2020: 190,874 grams), a 58.1% increase, at a wholesale price of $6.76 per gram (Q4 2020: $9.49), a 22.6% decrease. Sales of edibles were 12,759 grams (Q4 2020: 71,042), a 82.0% decrease, at a wholesale price per gram of $3.81 (Q4 2020: $0.91), a 319.7% increase.

Full Year 2021 Financial Results

Revenue
Revenues in FYE 2021 were $36.2 million compared to $21.6 million in Q4 2020, a 67% increase.

The Company sold 32.5 million grams of flower, pre-rolls, oils and extracts, trim and edibles, a 381.6% increase compared with 2020. ANM sold 5.0 million grams of flower, pre-rolls, trim and fresh frozen, oils and extracts and edibles during 2021, a 6.6% increase compared with 2020. Winberry sold 11.0 million grams of flower, pre-rolls, oils and extracts and edibles during 2021. Winberry was first consolidated into the Company’s financial reporting in the year 2021. MDT sold 14.3 million grams of flower, pre-rolls, trim, fresh frozen, oils and extracts and edibles, compared with 1.8 million grams sold during 2020.

Gross Profit
Reported gross profits were $4.5 million, representing 12.4% gross margin in 2021, compared to $4.3 million, or 19.7% gross margin, in 2020. Adjusted for the gain or loss in the value of biological assets and impairments, gross profit was $7.3 million, or 20.1% gross margin, compared with adjusted gross profit of $5.2 million, or 24.0% gross margin in 2020.

Operating Expenses
Operating expenses were $43.1 million in 2021 compared to $23.5 million in 2020. Acquisitions added $12.5 million in operating expenses during 2021. For FYE 2021, total operating expenses for Bophelo and Canmart were $3.6 million compared to $0.6 million last year. Bophelo and CanMart were sold to Akanda in November of 2021 and going forward those costs are no longer incurred by Halo.

Adjusted EBITDA
The Company reported an Adjusted EBITDA loss of $23.6 million compared to a loss of $6.9 million in 2020. 1

Net Loss
Net loss was $93.0 million for 2021, or $10.48 per share, compared with a net loss of $41.2 million, or $7.27 per share, in 2020.

Earnings Conference Call and Financial Outlook

Halo will host a live webinar at 4:15 p.m. Eastern Time on Monday, April 4, 2022, to discuss its results. To access the webinar, visit https://conferencingportals.com/event/qzlwFzzt. The webinar will also be available on a telephonic replay after the event until April 11, 2022. To access the replay, dial 1-(800) 770-2030 (toll free) or (647) 362-9199 (international) and enter conference ID: 45805. At this time we are not providing financial guidance given the uncertainty within the Oregon and California markets and the early stage of the Company’s incubation strategy.

Additional Information

Complete results are reported in the Company’s consolidated financial statements for the three and 12 months ended December 31, 2021, and associated management’s discussion and analysis (the “Q4 2021 MD&A”) which are available on the Company’s profile on www.sedar.com.

About Halo Collective Inc.

Halo is a leading, vertically integrated cannabis company focused on the West Coast of the United States and operates other emerging businesses in CBD and non-psychotropic mushroom functional beverages. In its cannabis operations, the Company cultivates, extracts, manufactures, and distributes quality cannabis flower, oils, and concentrates and has sold hundreds of millions of grams of cannabis in the form of flower, pre-rolls, vape carts, edibles, and concentrates since inception. The Company sells a portfolio of branded cannabis products including its proprietary Hush™, Winberry Farms™, Williams Wonder Farms, and Budega™ brands, and under license agreements with Papa’s Herb®, DNA Genetics, Terphogz, and FlowerShop*.

In Oregon, Halo has a combined 14 acres of owned and contracted outdoor and greenhouse cultivation. The Company also operates Food Concepts LLC, a master tenant of a 55,000 square foot indoor cannabis cultivation, processing, and wholesaling facility in Portland.

In California, Halo maintains licenses for extraction, manufacturing, and distribution. The Company has partnered with Green Matter to purchase the Bar X Farm in Lake County and plans to develop up to 63 acres of cultivation, comprising one of the largest licensed single-site grows in California. Halo has opened a dispensary in Los Angeles under the Budega™ brand in North Hollywood and plans to open two more in Hollywood, and Westwood by the 2nd quarter of 2022.

Halo is also expanding into other consumer health and wellness categories expected to experience rapid growth in consumer demand, including functional supplements such as nootropic nutraceuticals. The Company has recently acquired H2C Beverages, a company focused on cannabinoids and non-psychotropic mushroom functional beverages, and entered into a distribution and manufacturing agreement with SWAY Energy Corporation (formerly Elegance Brands Inc.), to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms.

Halo has acquired a range of software development assets, including CannPOS, Cannalift, CannaFeels, and a discrete sublingual dosing technology, Accudab. The Company intends to reorganize these entities (including their intellectual property and patent applications) into a subsidiary called Halo Tek Inc., and to complete a distribution of the shares of Halo Tek Inc. to shareholders on record, at a date to be determined.

Halo also operates three Kushbar retail cannabis stores located in Alberta, Canada.

Outside of North America, Halo is the largest shareholder of Akanda Corp. (NASDAQ: AKAN) currently owning 44% of the common shares. Akanda is an international medical cannabis and wellness platform company seeking to help people lead better lives through improved access to high quality and affordable products. Akanda is building a seed-to-patient supply chain, connecting patients in the UK and Europe with diverse products, including cannabis products cultivated at its competitively advantaged grow operation in the Kingdom of Lesotho and with other trusted third-party brands. Akanda’s initial portfolio includes Bophelo Bioscience & Wellness, a GACP qualified cultivation campus in the Kingdom of Lesotho in Southern Africa, and CanMart, a UK-based fully licensed pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com

Connect with Halo Collective: Email | Website LinkedIn | Twitter | Instagram

Non-IFRS Financial Measures

Adjusted EBITDA and Adjusted Gross Profit are non-IFRS financial measures that the Company uses to assess its operating performance and does not have any standardized meaning prescribed by IFRS. Management defines Adjusted EBITDA as earnings (loss) before interest, tax, depreciation and amortization, as adjusted for non-cash items. Management defines Adjusted Gross Profit and Margin as Gross Profit adjusted for fair value gains or losses on biological assets, and impairments included in cost of goods sold. These non-IFRS measures are provided to assist management and investors in determining the Company’s operating performance. The Company also believes that securities analysts, investors and other interested parties frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities. For a reconciliation of Adjusted EBITDA please refer to “Non-GAAP Measures” in the Q4 2021 MD&A, which is available on the Company’s SEDAR profile at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to the management’s plans regarding its portfolio of cannabis businesses, the expected contribution from the Company’s California dispensaries and the expected opening date thereof, the time and place for the Company’s earnings call, the expected size and capabilities of the final facility planned at Ukiah Ventures, the size of Halo’s planned cultivation facility in Northern California and the proposed spin-off by Halo Tek Inc.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: inability of management to successfully integrate the operations of acquired businesses, changes in the consumer market for cannabis products, changes in the expected outcomes of the proposed changes to Halo’s operations, delays in obtaining required licenses or approvals necessary for the build-out of the Company’s cannabis operations, dispensaries or Canadian operations, the proposed spin-out with Halo Tek Inc., delays or unforeseen costs incurred in connection with construction, the ability of competitors to scale operations in Northern California, delays or unforeseen difficulties in connection with the cultivation and harvest of Halo’s raw material, changes in general economic, business and political conditions, including changes in the financial markets; and the other risks disclosed in the Company’s annual information form dated March 31, 2022 and other disclosure documents available on the Company’s profile at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

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

Third Party Information

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

Non-Solicitation

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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

About Ryan Allway

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


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