The Company reports strong results from its previous year:
1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF) (OTCQB:TGIFF), a vertically integrated cannabis consumer packaged goods company, is pleased to announce its second quarter ("Q2 2021") financial results for the period ended January 31, 2021. All amounts expressed are in Canadian dollars.
Financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/.
Mr. Paul Rosen, Chairman and CEO, Management Commentary
The Company has set as key priorities the goals of achieving profitability, becoming cash-flow positive and building shareholder value. After considerable work undertaken over the last several months, I am pleased to report that the Company is in a stronger financial position today than a year ago. We have laid a strong foundation for long term growth with a strengthened balance sheet, a substantially improved debt-to-equity ratio and the capacity to maximize our output and optimize the quality of our products and assets, which enable us to deliver exceptional consumer experiences.
Over the reporting period, the Company continued to make progress in improving and streamlining operations in an effort to right-size costs, improve the balance sheet and drive revenue, resulting in significant improvements in net loss, gross margins, expenses and Adjusted EBITDA. The Company's focus has been to bring its assets into continuous production, develop premium strains, expand its extraction capacities, expand distribution for its CBD line, and improve margins. The Company has continued to minimize non-revenue generating costs and is carefully managing its cash position.
During Q2 2021, the Company expanded the output of premium flower and concentrates resulting in record sales in January 2021. Revenues increased by 27% from the previous quarter, demonstrating the strength of local demand for cannabis products in Nevada, where we see favourable market conditions for years to come. Management will continue to grow market share in its core market as a leading wholesaler of craft cannabis products. The loss of tourism in Las Vegas due to COVID-19 and the impact of the pandemic on brick-and-mortar retail across the US had an effect on Canna Hemp™ sales. The Company believes that growth of the brand will come from its e-commerce efforts and will continue to build on its online presence. Management expects that the benefits of these operational efficiencies and expanded sales networks will result in substantial improvements that will be realized in fiscal 2021.
Q2 2021 Financial Highlights
Q2 2021 (Jan 31, 2021) | Q1 2021 (Oct 31, 2020) | Q2 2020 (Jan 31, 2020) | ||||||||||
Revenues | $ | 3,406,826 | $ | 2,687,516 | $ | 3,139,265 | ||||||
Gross margin | $ | 1,694,994 | $ | 728,700 | $ | (775,917 | ) | |||||
Expenses | $ | 3,104,154 | $ | 3,544,687 | $ | 5,630,016 | (i) | |||||
Net loss | $ | (1,409,063 | ) | $ | (2,818,577 | ) | $ | (6,421,360 | ) | |||
Comprehensive loss | $ | (2,745,087 | ) | $ | (2,929,123 | ) | $ | (6,031,828 | ) | |||
Adjusted EBITDA loss | $ | (117,741 | ) | $ | (1,351,212 | ) | ($4,806,090)(i) | |||||
Basic and diluted loss per share | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Cash balance | $ | 1,687,750 | $ | 2,044,574 | $ | 9,144,470 | ||||||
Total assets | $ | 43,500,424 | $ | 45,431,525 | $ | 55,289,649 | ||||||
Total liabilities | $ | 24,656,642 | $ | 26,714,275 | $ | 25,833,196 | ||||||
Total equity | $ | 18,843,782 | $ | 18,717,250 | $ | 29,456,453 |
(i) These figures have been re-stated from SEDAR filed financial statements and MD&A to conform with current period presentation of discontinued operations.
Operating Results
Balance Sheet
Q2 2021 Key Developments
Corporate
Financing Activities
Developments Subsequent to January 31, 2021
Financing Activities
Please note the next financial release dates in accordance with the continuous disclosure schedule set out by the British Columbia Securities Commission:
Q3 2021 (June 29, 2021);
Q4/YE 2021 (November 29, 2021)
About 1933 Industries Inc.
1933 Industries is a vertically-integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the Company controls all aspects of the value chain with cultivation, extraction, processing, and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners. The Company owns 91% of Alternative Medicine Association, LC (AMA), and 100% of Infused MFG LLC.
About Alternative Medicine Association
AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis products and manufactures third-party brands. AMA's extensive menu of cannabis products include: craft cannabis flower, pre-rolls, full spectrum oils, high quality distillates, proprietary blends of terpenes, vaporizer products and boutique concentrates such as shatter, crumble, batter, sugar wax, diamonds, and live resin. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that's exceptional, potent, and consistent in quality.
About Canna Hemp™
With an extensive product line that includes topicals, creams, vapes, elixirs, capsules, lip balms and pre- and post-workout recovery sports products, 1933 Industries' proprietary Canna Hemp™ brand utilizes the power of hemp and CBD to bring natural wellness. The Company's flagship products, the Canna Hemp™ Relief Cream and Canna Hemp X™ Recovery Cream are recognized as best topicals in the market. Canna Hemp X™ is a CBD sports recovery cream for athletes, bridging the gap between recovery and top performance. All products are triple and third-party tested for safety with test results embedded via QR codes for traceability.
For further information please contact:
Alexia Helgason, VP, IR and Corporate Communications
604-674-4756 (ext. 1)
This email address is being protected from spambots. You need JavaScript enabled to view it.
Paul Rosen, CEO
604-674-4756 (ext. 1)
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Last Trade: | US$0.0072 |
Daily Volume: | 121,100 |
Market Cap: | US$3.530M |
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