/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES./
CALGARY, AB, May 27, 2024 /CNW/ - Simply Solventless
Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to provide
Q2 2024 gross revenue, adjusted EBITDA and net income guidance
including record projected quarterly gross revenue and the
continuation of SSC's quarterly positive adjusted EBITDA and
normalized net income streak to nine and seven quarters
respectively.
Q2 2024 Guidance
SSC projects record quarterly gross revenue during Q2 2024 of
approximately $4,000,000 (Q1 2024 -
$3,122,232), representing a growth
rate of 28% quarter over quarter. SSC's continued revenue growth is
primarily attributable to SSC's brands Astrolab, and Frootyhooty,
and SSC's acquisition of Lamplighter in January 2024.
SSC also projects Q2 2024 adjusted EBITDA of approximately
$850,000 (Q1 2024 - $611,571) (see Non-IFRS Financial
Measures, below), representing a growth rate of 39% quarter
over quarter, and net income of approximately $750,000 (Q1 2024 - $502,536), representing a growth rate of 49%
quarter over quarter. SSC's streak of positive adjusted EBITDA and
normalized net income is expected to extend to nine and seven
quarters respectively.
Jeff Swainson, President and CEO
of SSC, stated: "On the heels of our oversubscribed $800,000 unit offering completed in April, we
expect record Q2 2024 revenue of $4,000,000 and our seventh straight quarter of
normalized net income. We are encouraged by our trajectory and our
focus remains on profitable revenue growth both organically and
through opportunistic acquisitions."
SSC has no long-term debt and approximately 53.8 million common
shares outstanding (basic), of which approximately 30% are held by
insiders. Of SSC's outstanding common shares, approximately 17.0
million (32%) are escrowed pursuant to TSX Venture Exchange
("TSXV") policies. Further details with respect to SSC's escrowed
securities can be found in SSC's filing statement dated
October 31, 2023. SSC also advises
that it has filed a revised 2023 annual MD&A and Q1 2024
MD&A to correct a data entry error on the quarterly results
summary pages. SSC's filing statement and the revised
MD&As are available on SSC's SEDAR+ profile at
www.sedarplus.ca.
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", "approximately" and
similar expressions which are intended to identify forward-looking
statements. More particularly and without limitation, this press
release contains forward looking statements concerning capitalizing
on SSC's business plan and SSC's expected growth, results of
operations and performance. 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, the timing
and market acceptance of products, competition in SSC's markets,
SSC's reliance on customers, fluctuations in interest rates, SSC's
ability to maintain good relations with its customers, employees
and other stakeholders, changes in law or regulations, SSC's
ability to protect its intellectual property, 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.
Future Oriented Financial Information
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about gross revenue, adjusted EBITDA and net income of SSC,
which are subject to the same assumptions, risk factors,
limitations and qualifications as set forth in the above
paragraphs. FOFI contained in this document was approved by
management as of the date of this document and was provided for the
purpose of providing further information about SSC's future
business operations. SSC and its management believe that FOFI has
been prepared on a reasonable basis, reflecting management's best
estimates and judgments, and represent, to the best of management's
knowledge and opinion, the SSC's expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results. SSC
disclaims any intention or obligation to update or revise any FOFI
contained in this document, whether as a result of new information,
future events or otherwise, unless required pursuant to applicable
law. Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein. Differences in the timing of capital expenditures
or revenues and variances in production estimates can have a
significant impact on the key performance measures included in
SSC's guidance. SSC's actual results may differ materially from
these estimates.
Non-IFRS Financial Measures
This press release includes references to "adjusted EBITDA",
which is not defined under International Financial Reporting
Standards (IFRS). The intent of this non-IFRS measure is to provide
additional useful information to investors and analysts. This
non-IFRS measure does not have a standardized meaning prescribed by
IFRS and is therefore unlikely to be comparable to similar measures
presented by other entities. As such, this non-IFRS measure should
not be considered in isolation or used as a substitute for measures
of performance prepared in accordance with IFRS.
Adjusted EBITDA is calculated as income before interest, taxes,
depreciation and amortization expenses. Adjusted 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 not defined under IFRS and
therefore should not be considered an alternative to, or more
meaningful than, income (loss) and comprehensive income (loss).
The following table reconciles net income (loss) to EBITDA:
|
Three months
ended
|
Twelve months
ended
|
|
Mar 31,
2024
$
|
Mar 31,
2023
$
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
|
|
Net and comprehensive
(loss)
income
|
502,536
|
758,828
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
13,234
|
11,166
|
48,207
|
229,854
|
Net interest (income)
expense
|
51,832
|
106,302
|
313,324
|
261,995
|
EBITDA
|
567,602
|
876,296
|
1,401,847
|
(1,191,950)
|
The following table reconciles net income (loss) to Adjusted
EBITDA:
|
Three months
ended
|
Twelve months
ended
|
|
Mar 31,
2024
$
|
Mar 31,
2023
$
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
|
|
Net and comprehensive
(loss)
income
|
502,536
|
758,828
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
|
|
Depreciation and
amortization
|
13.234
|
11,166
|
48,207
|
229,854
|
Net interest (income)
expense
|
51,832
|
106,302
|
313,324
|
261,995
|
Gain on
disposal
|
-
|
-
|
(417,814)
|
-
|
Acquisition of Dash
Capital
|
-
|
-
|
1,043,909
|
-
|
Share compensation
expense
|
43,969
|
82,511
|
218,984
|
48,607
|
Adjusted
EBITDA
|
611,571
|
958,807
|
2,246,926
|
(1,143,343)
|
The following table reconciles net income (loss) to Normalized
Net Income:
|
Three months
ended
|
Twelve months
ended
|
|
Mar 31,
2024
$
|
Mar 31,
2023
$
|
Dec 31,
2023
$
|
Dec 31,
2022
$
|
|
|
|
|
|
Net and comprehensive
(loss)
income
|
502,536
|
758,828
|
1,040,316
|
(1,683,799)
|
Add
(deduct):
|
|
|
|
|
Gain on
disposal
|
-
|
-
|
(417,814)
|
-
|
Acquisition of Dash
Capital
|
-
|
-
|
1,043,909
|
-
|
Share compensation
expense
|
43,969
|
82,511
|
218,984
|
48,607
|
Normalized Net
Income
|
546,505
|
841,339
|
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 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.