CanadaBis Capital with Sub Stigma Grow Provides Corporate Update, Highlighted by Ongoing Product Expansion, Significant Growth in Net Revenue and Profitability
- 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 100 SKUs in seven provinces across Canada since 2021. 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
Headset Data (Infused Pre-Rolls)
BRITISH COLUMBIA SALES
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 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 fourth consecutive quarter 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