Enhanced Operational Efficiency and Strategic Investments Drive Continued Profitability
CALGARY, AB, June 26, 2024 /CNW/ - CanadaBis Capital Inc. (the "Company" or "CanadaBis") (TSXV: CANB), a premium vertically integrated Canadian cannabis company, is pleased to announce results from our second quarter fiscal 2024, represented by our tenth consecutive quarter generating net revenue. The Company's Financial Statements and Notes, as well as Management's Discussion and Analysis ("MD&A") are filed on SEDAR at www.sedarplus.ca. This quarter reflects another period generating positive earnings and Adjusted EBITDA1 for CanadaBis, The Company has allocated capital to innovation designed to remain ahead of competitors and to expand the SKU offering by adding multiple new products for future release. To support the Company's product enhancement initiatives, we have continued to adjusted our strategy to increase brand awareness and capture market share through an extensive nation-wide campaign designed to equip retailers with enhanced awareness of the various SKUs, programs and educational value-adds to CanadaBis' wide variety of high-quality, lower-cost products. While such investments can have an impact on results in the immediate quarters, reinvesting in the business is critical to support the Company's top and bottom line over the longer- term.
Canadabis Capital Remains to be a Net Positive Cannabis Company amongst tough times. (CNW Group/CanadaBis Capital Inc.)
Stigma Grow continues to re-formulate concentrate and pre roll lines to meet demands from current clients to maintain larger terpene and cannabinoid profiles across the product offerings while also earning repeat sales. With these ongoing improvements, coupled with demand for our award-winning Infused Pre-rolls, Electric Dartz, Live Rosin Vapes and High-CBD Cartridges, CanadaBis anticipates continued positive performance in remainder of Fiscal 2024, while maintaining prudent financial management.
Financial Highlights for Q3 2024:
Revenue: $ 7.1 million
Net Income: $ 3.97 million
Adjusted EBITDA: $ 5 million
Operational Costs: Reduction by 20 %, showcasing improved operational efficiency.
CEO's Message:
"Canadabis Capital's performance in Q3 2024 was robust, driven by our strategic investments and continuous efforts to optimize our operational efficiencies," said Travis Mcintyre, Chief Executive Officer of Canadabis Capital. "We are focused on enhancing shareholder value through prudent financial management and forward-thinking strategies in the evolving cannabis market."
Operational Highlights:
Expansion of Portfolio: At the tail end of Q3 2024, Canadabis Capital successfully Launched the first 60% THC pre roll into the Canadian Market, seeing excellent up take by the provincial bodies.
R&D Investments: The company invested in research and development to expand its product offerings and improve Manufacturing processes.
Partnerships: A strategic partnership was established with a Distribution company in Portugal, enhancing our distribution network and market penetration.
CFO's Insights:
"Our financial discipline and strategic focus on high-growth opportunities have been key in delivering these continued positive results," said Garfield Richards, Chief Financial Officer of Canadabis Capital. "The reduction in operational costs combined with revenue growth highlights our commitment to drive profitability and sustainable growth."
Future Outlook:
Looking ahead, Canadabis Capital remains optimistic about the growth potential within the cannabis industry. The company plans to further diversify its SKU portfolio, enhance product innovation, and strengthen its market position in both domestic and international markets.
"We believe the future holds remarkable opportunities for growth as the cannabis sector continues to gain momentum globally," added Travis Mcintyre. "Our strong financial foundation and strategic vision position us well to capitalize on these opportunities."
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
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 months ended October 31, 2023. 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.
