CanadaBis Capital with Sub Stigma Grow Provides Corporate Update, Highlighted by Ongoing Product Expansion, Significant Growth in Net Revenue and Profitability

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CanadaBis Capital Inc.

Jan 24, 2023, 06:00 ET

CALGARY, AB, Jan. 24, 2023 /CNW/ - CanadaBis Capital Inc. (the "Company" or "CanadaBis") (TSXV: CANB), a premium and vertically-integrated Canadian cannabis company, is pleased to provide an update for shareholders on the considerable progress made in significantly expanding and enhancing our reach, market share and financial position over the past year, as well as provide insights into the pipeline of future opportunities made possible by our  financial performance over the past four quarters.

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"I am very proud to confirm that with the last financials, our goal to be a profitable, cash flowing company has been realized as some of our new SKUs have rapidly become top-sellers in their respective categories, and the successful launch of over 274 new products registrations since 2020," said Travis McIntyre, CEO of CanadaBis. "We remain committed to developing innovative new products that are in demand by consumers, while seeking to maximize efficiencies and reduce safety hazards with the automation of certain operational processes, underpinned by a focused drive to reduce costs through ongoing negotiations with cultivators. We believe steady growth remains the key to our success, evidenced by significant increases in key profitability measures over the past 12 months."

General Highlights
  • Rapid Expansion of Team Supports Continued Growth - Expanded employee base and bolstered skill set with a 400% increase in employees over the past nine months, while ensuring our employee to revenue ratio was maintained.
  • Developed an Extensive Product Catalog – Successfully launched over 274 SKUs in seven provinces across Canada since 2020. We continue to develop products that align with consumer preferences, while remaining on the cutting edge of new provincial legislation, affording Stigma Grow first mover advantages as we seek to enhance our market share across the continent.
  • Recipient of Awards for Best-Selling Products – Over the past year, Stigma Grow received multiple nominations and awards for our line of Infused pre-roll products. In addition, we have SKUs that are consistent top-sellers in multiple provinces, such as our DAB BODS resin infused pre-rolls and our Dab Bod resin and shatter vape products.
  • Ongoing Cost Reductions & Process Improvements – In 2022, we added multiple automation tools into our workflows to reduce safety hazards and improve efficiencies. In addition, we successfully negotiated with cultivators to streamline costs while sustaining positive relationships.
  • Continued Commitment to Strategic Product Innovation - Our Innovation Pipeline continues to develop products that are being readily accepted into provincial product calls, affording Stigma Grow first-mover advantages in new, lucrative market segments.
  • Engaging with our Communities - We are a firm believer in being a positive and welcome member of our communities. In support of this, our executive team recently completed a month-long tour from British Columbia to Ontario, visiting as many retailers as possible to thank our loyal and valued customers while also profiling our products. Further, we recently launched a social media awareness campaign to enhance our brand awareness and interest in our product lines.
Financial Performance Summary
  • Record-Breaking Revenue Growth – Our continued success in developing innovative products and executing on our four pillar strategy has resulted in significant revenue growth year over year, with Q1/23 net revenue increasing by 178%.
  • Marking A Full Year of Profitability – Continued cost reductions combined with enhanced purchase order quantities has supported CanadaBis becoming profitable over the past two quarters, and represents a meaningful increase from a year ago when we realized a loss of $270,919 in Q1/22 to generating positive net income of $700,313 in Q1/23.
  • Keeping Costs Low Despite Rising Inflation – Maintained a low cost of sales by actively renegotiating with cultivators and implementing automated processes throughout our operations.
  • Another Company Milestone - In Q1/23, CanadaBis reported positive earnings per share ("EPS") of $0.01, the first time in our corporate history we have recorded positive EPS and demonstrating our commitment to creating shareholder value
Sales Performance Summary

*(1)Headset data IPR CATEGORY

Setting the Stage for Continued Success for the Balance of 2023

Given our position as a vertically integrated Cannabis company, we intend to continue introducing new Canadian concentrate and flower products under our own brand, while establishing our presence as an in-demand Licensed Producer with unique abilities and maneuverability. Further, we will continue to support education initiatives within the industry to help consumers better understand how cannabis products integrate into daily life and the various use cases. We remain excited about the opportunity to continue capturing market share using our diverse portfolio of brands, our unique products and services and our ability to benefit from ongoing industry developments.

We believe the stage has been set for CanadaBis to continue on our trajectory of strengthening financial metrics for the upcoming year, building on the robust revenue and earnings momentum created by the multiple consecutive quarters of positive results. We anticipate our sales growth will continue into the next quarter based on sustained high demand and significantly increased purchase orders on our new products, including moon rocks, infused pre-rolls, live resin vapes and high CBD cartridges, which are already showing strong market acceptance.

ABOUT  CANADABIS CAPITAL INC.

CanadaBis Capital Inc. (TSXV:CANB) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from cultivation to retail, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, we remain focused on finding and capitalizing on chances to grow, diversify and continue to lead our industry.

Our integrated subsidiaries:

  • Stigma Pharmaceuticals Inc. – 100% held
  • 1998643 Alberta Ltd. (operating as "Stigma Grow") - 100% held; www.stigmagrow.ca
  • Full Spectrum Labs Ltd. (operating as "Stigma Roots") - 100% held
  • 2103157 Alberta Ltd. (operating as "INDICAtive Collection") -100% held; www.indicativecollection.ca
  • Goldstream Cannabis Inc. - 95% held
ABOUT  STIGMA GROW

Stigma Grow is a cutting-edge cannabis cultivation and extraction company positioned advantageously to meet the unmet market demands and stigmas within the legal cannabis industry head on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada's legal cannabis industry.

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 nine months ended April 30, 2022. 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.

Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs.

Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include but are not limited to statements with respect to our business and operations; timing of the Sundial products coming to market; the demand and market for live-resin vape cartridges, and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions including: the ability of the Company's products to compete with the pricing and product availability on the black-market; the market demand for the Company's products; and assumptions concerning the Company's competitive advantages. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause 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: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; ability to sustain or create a demand for a product; requirement for further capital; delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Company's continuous disclosure on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe 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 a material adverse effect on our future results, performance or achievements.

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.

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

SOURCE CanadaBis Capital Inc.

For more information, please visit or contact: [email protected], 1-888-STIGMA1, www.canadabis.com

Organization Profile

CanadaBis Capital Inc.