Fresh off the heels of the launch of several new SKUs across Canada, CanadaBis Capital Inc. is quickly emerging as a recognized and respected name in BHO concentrates.
FOR IMMEDIATE RELEASE: RED DEER, AB, JULY 13, 2021 – CanadaBis Capital Inc (“CanadaBis” or the “Company”) (TSX-V:CANB), a leading Canadian cannabis producer of BHO concentrates, is pleased to announce its third quarter financial results for the three-month period ending April 30, 2021.
Record Performance Across BC, AB, SK, ON in Q3 2021[1]
- #1 brand in shatter 0.5 gram (volume sales)
- #1 brand in concentrate 0.5 gram (volume sales)
- #1 brand in live-resin vape sales (volume and revenue)
Key Financial Highlights
- Record Net Revenue: Net revenue grew to $2.2 million in the third quarter, an 22% increase over the prior quarter, driven by strong sales growth from live-resin vape and shatter products. Net revenue grew by 293% over the comparative 2020 quarter.
- Adjusted EBITDA positive results of $106,845 Mainly from increased Brand awareness and the launch of the DAB BODs Brand into the marketplace and the increasing demand for the NGL SKU’s. The brands have been well received and sold-out multiple times with increasing orders from provincial purchasers
- Partnership: Stigma Grow has started producing exclusive live resin and concentrates for Sundial Growers Inc, as per their third-party production agreement dated March 29, 2021
- Concentrates: The Company sold over 131,000 units of concentrate products in Q3 2021; a significant increase compared to the 6,000 units sold over the comparative period. Stigma Grow continues to see strong demand for approachable brands and pure and potent products.
- Retail Sales: Retail operation has seen a 11% increase in net revenue over the comparative period. The increase is attributable to continued growth and sales of concentrate products; meeting their growing demand in the province of Alberta. CanadaBis Capital retail portfolio continues to bring strategic value, contributing to the success of recent product launches, product innovation and understanding consumer trends.
- Launch of New Vape, Concentrate and Pre-Roll Products: 60% of third quarter sales came as the result of four new products launched in early spring, including new White NGL Vapes, Dab Bod Shatter, RSO and Candle Pre-Rolls.
- Strengthened Balance Sheet: Signed Term Sheet for up to $9.6 million with Connect First Calgary (the “New Credit Facility”) for future debt financing to push the operations forward, to repay certain liabilities and consolidate all current debt. As well as continue to push product into Ontario and continue to increase SKU’s across Canada.
Quarterly Highlights
| Three months ended | Nine months ended | |||
| April 30, 2021 | April 30, 2020 | April 30, 2021 | April 30, 2020 | |
| (Restated) | (Restated) | |||
| Net revenues | $2,213,307 | $563,595 | $5,202,675 | $847,111 |
| Cost of sales | 1,179,306 | 446,597 | 3,217,919 | 900,792 |
| Gross profit (loss) | 1,034,001 | 116,998 | 1,984,756 | (53,681) |
| Net loss and comprehensive loss | (225,326) | (882,918) | (1,485,004) | (5,253,950) |
| Loss per share (basic and diluted) | $(0.00) | $(0.01) | $(0.01) | $(0.04) |
| Adjusted EBITDA [2] | 106,845 | (670,690) | Not assessed | Not assessed |
Link to CanadaBis Investor Presentation
CanadaBis Capital’s financial statements for the three-month period ending April 30, 2021 (“Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) for the reporting period are available under the Company’s profile at www.sedar.com.
About CanadaBis Capital Inc.
CanadaBis Capital Inc. (TSXV:CANB) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth in the global cannabis market – with specific attention paid to supplying the fast-emerging concentrates category through their Stigma Grow cultivation and BHO extraction facility.
Subsidiaries:
- Stigma Pharmaceuticals Inc. – 100% held;
- 1998643 Alberta Ltd. (operating as “Stigma Grow”) – 100% held;
- Full Spectrum Labs Ltd. (operating as “Stigma Roots”) – 100% held;
- 2103157 Alberta Ltd. (operating as “INDICAtive Collection”) -100% held; and
- Goldstream Cannabis Inc. – 95% held.
Acting as the cornerstone for everything they offer, Stigma Grow continuously strives to address the market demands and lingering 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.
For more information on CanadaBis Capital or Stigma Grow visit:
or contact:
Investor Relations Info@CanadaBis.com 1-888-STIGMA1
CAUTIONARY STATEMENT
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, 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.
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 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 payments and finance costs. Outlined below a reconciliation from GAAP measure (Net loss) to Non-GAAP Measure (Adjusted EBITDA). The numbers that are input into this calculation can be found in the unaudited condensed interim consolidated statement of operations and comprehensive loss for the periods presented in the Interim Financial Statements.
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
[1] Headset.IO leading cannabis data & market research group – Sales over time in BC, AB, SK, ON, February 1, 2021 – April 30, 2021
2 Adjusted EBITDA is a non-GAAP performance measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” for further
details.