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CALGARY, AB , April 29,
2024 /CNW/ - Simply Solventless Concentrates
Ltd. (TSXV: HASH) ("SSC") is pleased to announce its 2023
annual results. Selected financial, operational and transactional
information is set out below and should be read in conjunction with
SSC's December 31, 2023 financial
statements and the related management's discussion and analysis,
which are available for review on SSC's SEDAR+ profile at
www.sedarplus.ca. SSC is also pleased to announce the appointment
of Murray Brown to the position of
Vice President, Operations, and to reiterate previously announced
Q1 2024 guidance.
Jeff Swainson, President &
CEO of SSC, stated: "2023 was a transformative year for SSC as our
incredible team exceeded expectations across the board. Against a
backdrop of continued industry headwinds, we eliminated all
long-term debt, increased gross revenue by 149% to approximately
$7.0 million, increased normalized
net income by 215% to approximately $1.9
million, and strengthened our team significantly. Continued
strong results are what matters to our team, and we now look to
profitably expand our market share through continued organic growth
and opportunistic acquisitions, capitalizing on the significant
opportunities resulting from industry headwinds."
2023 Financial Highlights:
- December 31, 2023 Working
Capital(1): $3,693,879.
- 2023 Gross Revenue: $6,973,401
(December 31, 2022 -$2,799,367), an increase of 149%.
- 2023 Net Revenue: $6,191,646
(December 31, 2022 - $2,799,367), an increase of 121%.
- 2023 Gross Margin: $3,497,279
(December 31, 2022 - $38,427), an increase of 9,001%.
- 2023 Gross Margin: 57% of net revenue (December 31, 2022 - 1.4%), an increase of
3,971%.
- 2023 EBITDA(1): $1,401,847 (December 31,
2022 - $1,191,950 loss), an
increase of 218%.
- 2023 Adjusted EBITDA(1): $2,246,926 (December 31,
2022 - $1,143,343 loss), an
increase of 297%.
- 2023 Net Income: $1,040,316
(December 31, 2022 - $1,683,799 loss), an increase of 162%.
- 2023 Normalized Net Income(1): $1,885,395 (December 31,
2022 - $1,635,192 loss), an
increase of 215%.
___________________________________________________________________________________________________________
|
(1) Non-IFRS financial
measure. See discussion in the Non-IFRS Financial Measures
advisories section of this press release below.
|
2023 Operations and Transaction Highlights:
- Brands: Launched the popular brands Astrolab (May 2023) and Frootyhooty (November 2023).
- Facility Sale Leaseback: In June
2023, SSC eliminated $7,047,169 of debt and liabilities through a sale
leaseback transaction of SSC's facility.
- Financings: In August 2023, SSC
raised $584,694 of equity at
$0.20/unit (a "Unit"), each
Unit being comprised of one common share and one common share
purchase warrant, and converted $1,162,348 in convertible debentures to Units at
$0.17/Unit, eliminating all remaining
long-term debt of SSC.
- Go Public Transaction: On December 18,
2023, SSC went public on the TSXV under the "HASH" ticker
symbol through a reverse takeover transaction with Dash Capital
Corp.
Appointment of Vice President, Operations and Option
Grant
SSC is also pleased to announce the appointment of Murray Brown as Vice President, Operations of
SSC. Murray is currently the Production Manager of SSC. Murray
comes with four decades of experience at the executive level in
cannabis, oil and gas services, and manufacturing. Prior to joining
SSC, Murray served as Vice President, Operations and Chief
Financial Officer of Custom Cannabis for a period of five years. In
connection with Murray's appointment and a past executive
appointment, SSC has granted an aggregate of 400,000 stock options
under SSC's equity incentive plan at an exercise price of
$0.20 per share and expiring on
April 24, 2027. The option grants and
appointment of Murray remains subject to the final approval of the
TSX Venture Exchange.
Reiteration of Q1 2024 Financial Guidance
SSC projects record quarterly gross revenue during Q1 2024 of
approximately $3,100,000 (Q1 2023 -
$1,789,562), representing a growth
rate of 73%. SSC also projects Q1 2024 adjusted EBITDA of
approximately $500,000 (Q1 2023 -
$318,978) (see Non-IFRS Financial
Measures, below), a growth rate of 56%, and quarterly Q1 2024 net
income of approximately $310,000 (Q1
2023 - $44,491), a growth rate of
597%.
SSC expects to issue its Q1 2024 results on or around
May 9, 2024.
About Simply Solventless Concentrates Ltd.
SSC is a public company incorporated under the Business
Corporations Act (Alberta).
SSC's mission is to provide pure, potent, terpene-rich ready to
consume cannabis products to discerning cannabis consumers. For
more information regarding SSC, please see
www.simplysolventless.ca.
Notice on Forward Looking Information
This press release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "will", "estimates",
"believes", "intends", "expects", "projected" and similar
expressions which are intended to identify forward-looking
statements. More particularly and without limitation, this press
release contains forward looking statements concerning profitably
expanding SSC's market share through continued organic growth and
opportunistic acquisitions, and SSC capitalizing on the
opportunities resulting from industry headwinds, and the timing of
releasing SSC's Q1 2024 results. SSC cautions that all
forward-looking statements are inherently uncertain, and that
actual performance may be affected by a number of material factors,
assumptions and expectations, many of which are beyond the control
of SSC, including expectations and assumptions concerning SSC, as
well as other risks and uncertainties, including those described in
SSC's filings available on SEDAR+ at www.sedarplus.ca. The
reader is cautioned that assumptions used in the preparation of any
forward-looking statements may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from
those predicted as a result of numerous known and unknown risks,
uncertainties and other factors, many of which are beyond the
control of SSC. The reader is cautioned not to place undue reliance
on any forward-looking statements. Such information, although
considered reasonable by management at the time of preparation, may
prove to be incorrect and actual results may differ materially from
those anticipated. Forward-looking statements contained in this
press release are expressly qualified by this cautionary
statement.
The forward-looking statements contained in this press release
are made as of the date of this press release, and SSC does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by securities law.
Non-IFRS Financial Measures
This press release includes references to "Working Capital",
"EBITDA", "Adjusted EBITDA" and "Normalized Net Income", which are
not defined under International Financial Reporting Standards
(IFRS). The intent of these non-IFRS measures is to provide
additional useful information to investors and analysts. These
non-IFRS measures do not have a standardized meaning prescribed by
IFRS and is therefore unlikely to be comparable to similar measures
presented by other entities. As such, these non-IFRS measures
should not be considered in isolation or used as a substitute for
measures of performance prepared in accordance with IFRS.
Working Capital is defined as current assets less current
liabilities as reported on SSC's consolidated statements of
financial position. Working Capital is considered as a useful
measure by management of SSC to indicate SSC's ability to service
its short-term financial obligations with short-term assets.
EBITDA is calculated as income before interest, taxes,
depreciation and amortization expenses. EBITDA is considered as a
useful measure by management of SSC to understand the profitability
of SSC excluding the effects of capital structure, taxation and
depreciation, but may not be appropriate for other purposes.
Adjusted EBITDA is calculated as EBITDA less the sale of SSC's
facility, plus the acquisition of Dash Capital Corp. and share
compensation expense. Adjusted EBITDA is considered as a
useful measure by management of SSC to understand the profitability
of SSC excluding the effects of certain non-operating items.
Normalized Net Income is calculated as income less the sale
of SSC's facility, plus the acquisition of Dash Capital Corp. and
share compensation expense. Normalized Net Income is considered as
a useful measure by management of SSC to understand the
profitability of SSC excluding the effects of certain non-operating
items.
The following table reconciles current assets and current
liabilities to Working Capital:
As at
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
Current
assets
|
8,419,131
|
3,467,464
|
Current
liabilities
|
4,725,252
|
2,339,957
|
Working
Capital
|
3,693,879
|
1,127,507
|
The following table reconciles net income (loss) to EBITDA:
Year
Ended
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
Net and comprehensive
(loss) income
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
Depreciation and
amortization
|
48,207
|
229,854
|
Net interest (income)
expense
|
313,324
|
261,995
|
EBITDA
|
1,401,847
|
(1,191,950)
|
The following table reconciles net income (loss) to Adjusted
EBITDA:
Year
Ended
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
Net and comprehensive
(loss) income
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
Depreciation and
amortization
|
48,207
|
229,854
|
Net interest (income)
expense
|
313,324
|
261,995
|
Gain on
disposal
|
(417,814)
|
-
|
Acquisition of Dash
Capital Corp.
|
1,043,909
|
-
|
Share compensation
expense
|
218,984
|
48,607
|
Adjusted
EBITDA
|
2,246,926
|
(1,143,343)
|
The following table reconciles net income (loss) to Normalized
Net Income:
Year
Ended
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
Net and comprehensive
(loss) income
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
Gain on
disposal
|
(417,814)
|
-
|
Acquisition of Dash
Capital Corp.
|
1,043,909
|
-
|
Share compensation
expense
|
218,984
|
48,607
|
Normalized Net
Income
|
1,885,395
|
(1,635,192)
|
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
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 Simply Solventless Concentrates Ltd.