Company News

  • Endgame Extracts brand launched in BC in Q1 2022 with a 100% case sell-through achieved in 48-hours; Endgame is currently ranked #3 and #4 for its shatter sales in BC – with launches planned for other large Canadian markets ( Alberta and Ontario ) to follow
  • Adastra continues to add new revenue streams, including the addition of new co-manufacturing contracts for several well-known Canadian brands to start in 2022
  • Continued expansion for product sales and distribution across Canada – Phyto Extractions is now available in the Northwest Territories and Yukon
  • Expanded capabilities and automation: pre-roll machine installed to meet anticipated consumer demand for this sought-after product category
  • Added extraction and processing shifts to increase end-product output and fulfill demand

 Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company"), a leading cannabis company focused on processing, sales, organoleptic testing and analytical testing, is pleased to provide the Company's shareholders with a corporate update from Michael Forbes Director and Chief Executive Officer of Adastra:

Endgame Extracts (CNW Group/Adastra Holdings Ltd.)

"Dear Shareholders,

I joined Adastra in May 2021 as Director and CEO and embarked on a journey to transform the business. Over the last twelve months, I have optimized all major aspects of our business to set Adastra up for long term success. Running a "good" business is not good enough for me. My goal is to lead a "great" business, by actively adapting all aspects to create long-term significant value for our shareholders.

As a pharmacist by education and training, my entire career has been firmly rooted in medicine, alternative treatments, cannabis production, sales and entrepreneurship. Joining Adastra, I have brought this expertise and multi-faceted, strategic focus to grow our business in areas such as sales volume, production output and capabilities, partnerships, market share and investor engagement. We have made meaningful progress, and we believe this is just the beginning.

Executing on Our Growth Strategy

Over the past twelve months we have achieved the following:

  • Corporate rebrand from Phyto Extractions Inc. back to our original name – Adastra Holdings Ltd. to position us as a trusted leader in cannabis and ethnobotanical extraction, processing, formulation and product development.
  • Acquired Phyto Extractions and PerceiveMD to vertically integrate our product reach.
  • Developed and launched in-house brand, Endgame Extracts, starting with a strategic initial SKU drop to British Columbia . Unique crossed flavour and strain profiles, priced in line with customer and retailer expectations to ensure sell-through alongside a quality experience.
  • Introduced several hydrocarbon extracts, novel full spectrum vape formulations, additional product SKUs for our wholly owned brand Endgame, and brands leveraging our extraction expertise via co-manufacturing complex concentrates, like THCA diamonds and high terpene full spectrum extract products.
  • Expanded our market share by branching into new domestic markets including British Columbia , with Endgame Extracts, with Alberta and Ontario to follow. Brought Phyto Extractions to the Northwest Territories and Yukon .
  • Executed marketing and sales initiatives to heighten brand awareness among consumers and retailers.
  • Restructured and reduced costs across the organization to ensure a solid foundation as we move forward. This includes adding production shifts to meet processing demand for provincial distributors for Endgame and our co-manufacturing partners' product SKUs, automating processes with new equipment and refining our practices.
  • Received our organoleptic testing license in June 2021 , enabling us to test product formats and formulations with a consumer audience. This reduces risk and cost associated with the "guess work" involved in product SKU launches, as consumption is heavily restricted by regulations.

By improving the delivery of our many capabilities, today we are a trusted processor and co-manufacturing partner to many Canadian brands who share our commitment for quality and innovation.

Our Key Areas of Focus

As we move forward, our strategic key areas are as follows:

  1. Medical product development and formulation – Manufacturing alternative plant-medicine treatments for sale in the medical market (i.e., capsules, tinctures). Adastra's wholly-owned PerceiveMD platform assesses patients seeking alternative treatments and remedies and provides documentation to enable access. Maximizing the full potential of PerceiveMD will bolster Adastra's future business and add additional revenue. Additionally, we have submitted a Medical Sales Licence application to Health Canada which will allow us to manufacture and sell medical cannabis product formats to the Canadian medical market. We believe PerceiveMD addresses the gap that exists in the market today for a patient access platform. Having this online platform in-house provides us with an advantage over many of our peers to meet the existing demand that we believe is underserved today.

  2. New premium cannabis extract product innovations – We are committed to maintaining our edge by staying ahead of trends and consumer preferences including:
  • THCA diamonds (high potency extracts) – commissioned equipment to develop diamonds for our Endgame brand and for our co-manufacturing partners.
  • Single-source shatter – this is a growing product category that we are pleased to serve with our institutional knowledge and expertise.
  • Full-spectrum vape cartridges – the market is maturing, with customer preferences refining and we are pleased to deliver on preferred flavour notes and quality experience.
  • Dried Flower Products – Pre-rolls are currently the fastest growing segment of the Canadian cannabis market. Infused pre-rolls is a category that has outpaced dried flower-only pre-rolls in legal US markets. On December 17, 2021 , we received Health Canada approval for the amendment of our sales licence to include dried flower. We see significant opportunity to continue to grow our pre-roll business (pre-rolls, infused pre-rolls, and larger quantity flower) for our Endgame and Phyto brands.

  • Market Trends and Other Alternative Treatments – We have demonstrated our ability to stay ahead of consumer trends by proactively amending our licences and expanding our capabilities to meet the ever-evolving preferences of consumers and the companies we partner with. In particular, we are seeing a significant movement towards alternative medicine. Having been involved in the cannabis industry for more than a decade, combined with my experience running pharmacies and wellness clinics, I have seen firsthand the positive impact and efficacy of cannabis for certain patients, as well as the increasing popularity of alternative treatments and remedies. We are committed to staying ahead of the game. We have submitted a Controlled Substances Dealer's Licence application to Health Canada to include psilocybin and, following approval thereof, we can begin formulating and developing alternative treatments for patients.
  • We are enjoying continued growth in the demand for high quality cannabis concentrates and products by continually adapting to changing consumer preferences.

    From a recreational lens, cannabis is an increasingly adopted alternative to alcohol, particularly when available in CPG formats (i.e., vapes and beverages) and presents far less opportunity for harm and undesirable side effects. The mainstream shift to "West Coast Sober" is happening, and we are here to stay at the forefront.

    We believe we have established a diversified platform for profitable growth and differentiation in the marketplace. We look to leverage this momentum over the coming months to create sustainable value for our customers, partners and shareholders.

    We are here for the future and the long run and maintain our commitment to growing and innovating."

    About Adastra Holdings Ltd.

    Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada . Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC , focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients. For more information, visit: www.adastraholdings.ca.

    Forward-Looking Information

    This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to: creating long-term significant value for the Company's shareholders; the expectation that progress in sales volume, production output, market share and partnerships will continue in the future; the expectation that maximizing PerceiveMD will bolster the Company's future business and add additional revenue; the belief that PerceiveMD addresses the gap that exists in the market for a patient access platform; the expectation that the Company's pre-roll business represents a significant growth opportunity; the belief that the Company has established a diversified platform for profitable growth and differentiation in the marketplace and the intention to leverage this to create sustainable value for stakeholders; and other general statements regarding the Company's platform for profitable growth and creation of sustainable value for customers, partners and shareholders. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

    Adastra Holdings Ltd. Logo (CNW Group/Adastra Holdings Ltd.)

    SOURCE Adastra Holdings Ltd.

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    Adastra Holdings


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    Adastra Holdings Reports First Quarter Results

    Adastra Holdings Reports First Quarter Results

    • Generated record gross revenues of $2,286,721 in Q1 2022, representing 288% growth compared to Q1 2021
    • Maintained a strong capital position in Q1 2022 with $28,176,801 in assets, and $6,712,176 in liabilities

    Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company") is pleased to announce that it has filed its consolidated financial statements and related management discussion and analysis for the three months ended March 31, 2022 both of which are available at www.sedar.com.

    Adastra Holdings brand ticker (CNW Group/Adastra Holdings Ltd.)

    Michael Forbes , Chief Executive Officer of Adastra, commented, "The year is off to a record-breaking start with strong momentum for the year ahead. We have achieved record revenues and gross profit, while maintaining a strong capital position."

    "Our team has made significant progress on many fronts, including bringing new brands to market, adding to our co-manufacturing portfolio and increasing production capacity and output. Our focus remains on implementing production rollout, generating multiple revenue streams and creating market expansion strategies. We have made proactive advances in all of these areas, which has ultimately resulted in a strong foundation for further continued growth of our business. We recently commissioned automated pre-roll hardware for infused pre-roll production to meet the demand for this product category."

    "To augment our revenue stream, we launched the Endgame Extracts brand, with four initial SKUs, at the British Columbia Liquor Distribution Branch, which sold out within 48 hours of product launch," added Mr. Forbes. "We submitted applications for our Medical Sales Licence and Controlled Substances Dealer's Licence, in line with our market expansion strategy. Our objective is to strategically position ourselves for further growth into in-demand cannabis product categories and in the emerging regulated psychedelics market."

    "We look forward to building on our reputation as a leader in the cannabis and patient-focused psychedelics space in order to deliver on our commitment to create long-term value for our customers, partners and shareholders."

    Key Q1 2022 Financial Highlights
    • Achieved record revenues of approximately $2.3 million in Q1 2022, compared to approximately $0.6 million in Q1 2021 – representing an increase of 288%, demonstrating significant demand for Adastra's in-demand cannabis concentrate brands and products.
    • Achieved gross profit of $827,713 in Q1 2022, compared to $105,411 in Q1 2021 – representing an increase of 685%.
    • Operating expenses for Q1 2022 increased to $1,695,682 when compared to $467,771 during Q1 2021 – representing an increase of 263%.
    Key Q1 2022 Corporate and Business Highlights
    • Launched Endgame Extracts SKUs in British Columbia , which was 100% sold out within 48 hours.
    • Submitted applications for a Medical Sales Licence and a Controlled Substances Dealer's Licence.
    • Commissioned automated pre-roll equipment for infused pre-roll production.
    • Shatter production increased to 106.6 kg in Q1 2022 compared to 20.7 kg in Q1 2021.
    • Commercialized additional full spectrum extract SKUs for in-house brands and co-manufacturing partners, ex: THCA Diamonds, Sugar Wax, Shatter, Full Spectrum vaporizer cartridges.
    About Adastra Holdings Ltd.

    Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada . Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC , focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients. For more information, visit: www.adastraholdings.ca.

    Forward-Looking Information

    This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to: the Company's goals of implementing production rollout, generating multiple revenue streams, and creating market expansion strategies; further continued growth of the Company's business; the Company's ability to meet the demand for infused pre-roll production; the Company's objective to position itself for further growth into in-demand cannabis product categories and in the emerging regulated psychedelics market; and the Company's goal of building on its reputation in the cannabis and patient-focused psychedelics space in order to create long-term value for customers, partners and shareholders. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

    SOURCE Adastra Holdings Ltd.

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    Adastra Holdings Announces New Director

    Adastra Holdings Announces New Director

    Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company"), a Health Canada Licensed cannabis company focused on processing, sales, organoleptic testing, and analytical testing, is pleased to announce the appointment of Smoke Wallin to the Company's board of directors.

    Adastra Holdings brand ticker (CNW Group/Adastra Holdings Ltd.)

    "We are extremely honoured and privileged to welcome Mr. Wallin to Adastra's board of directors," said Michael Forbes , CEO of Adastra. "Mr. Wallin is an accomplished leader and international business builder in the CPG, cannabis, health and wellness, food and beverage, distribution, hospitality and technology industries. Mr. Wallin is a seasoned executive and serial entrepreneur who has a wealth of knowledge in the cannabis industry. I am confident that he will be an important contributor to our Company's long term success."

    Mr. Wallin added, "I'm excited to support Michael and the team at Adastra as they build on an already impressive set of production assets in the Canadian cannabis market, with an eye toward additional capabilities in some super innovative forward looking therapeutics including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD. I believe in their strategy and the team's ability to execute their growth plan profitably, something quite rare in this rapidly growing market."

    Mr. Wallin is a highly accomplished CEO, entrepreneur, leader, board member and philanthropist with more than 25 years of success across the consumer products, beverage, cannabis, distribution and technology industries. He is a partner and Managing Director for STS Capital Partners; has frequently served as CEO for new and existing businesses; has been directly involved in $1.7 billion in mergers and acquisitions and financings; and has acquired, created, or sold 50+ brands and companies. He has been recognized with the Ernst & Young Entrepreneur of The Year award, and the Vanderbilt Business "Distinguished Alumni Award." He was also named one of the 100 most influential leaders in the cannabis industry by High Times Magazine. Smoke earned an MBA from Vanderbilt University and a B.S. degree in Agricultural Economics from Cornell University's Dyson School of Applied Economics at the Cornell SC Johnson College of Business.

    About Adastra Holdings Ltd.

    Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada . Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC , focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients. For more information, visit: www.adastraholdings.ca.

    Forward-Looking Information

    This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements with respect to: (i) the Company's long-term success; (ii) the Company building on production assets in the Canadian cannabis market and additional therapeutic areas including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD; and (iii) the Company's execution of its growth plan. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the cannabis extraction sector in general; (iii) changes in regulations surrounding cannabis as a controlled substance; and (iv) other factors beyond the control of the Company. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

    SOURCE Adastra Holdings Ltd.

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    Adastra Holdings Announces 2021 Annual Financial Results and Corporate Update

    Adastra Holdings Announces 2021 Annual Financial Results and Corporate Update

    • Generated record gross revenues of $5.6 million in 2021, representing 124% growth YOY
    • Maintained a strong capital position with $28.8 million of assets, and $6.4 million of liabilities

    Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company") is pleased to announce that it has filed its consolidated financial statements and related management discussion and analysis for the year ended December 31, 2021 both of which are available at www.sedar.com .

    Adastra Holdings Announces 2021 Annual Financial Results and Corporate Update (CNW Group/Adastra Holdings Ltd.)

    Michael Forbes , Chief Executive Officer of Adastra, commented, "2021 was a transformative year for Adastra. Having joined in May of 2021, I have seen considerable progress being made on many fronts – we acquired Phyto Extractions and PerceiveMD to vertically integrate our product reach; introduced several new, innovative cannabis products; entered new domestic markets; and created marketing and sales initiatives that have raised brand awareness among consumers and retailers. The team has worked diligently in restructuring and reducing costs giving us a solid foundation as we move forward."

    "Strategically, our focus remains on the following growth areas: medical product development and formulation; premium branded extraction products; dried flower products; drug formulation; sales force expansion; and global opportunities. One of the fastest growing cannabis product categories in both Canada and the U.S. is infused pre-rolls. We are excited to be launching these types of pre-rolls shortly. As we are succeeding with shatter SKU expansion, we plan to leverage our shelf space to sell to the provincial distributors and anticipate this category being a big contributor to our success."

    "Combined, our production rollout and market expansion strategies give us optimism for 2022 and beyond," added Mr. Forbes. "We believe we have established a platform for profitable growth, with multiple revenue streams and differentiation in the marketplace. We look to leverage this momentum over the coming months to create sustainable value for our customers, partners and shareholders."

    Key 2021 Annual and Q4 Financial Highlights
    • Achieved record revenues of approximately $5.6 million in 2021, compared to approximately $2.5 million in 2020 - an increase of 124%, demonstrating significant demand for Adastra's in-demand cannabis concentrate brands and products.
    • Achieved revenues of approximately $2.0 million in Q4 2021, compared to approximately $1.2 million in Q4 2020 - an increase of 67%.
    • Achieved gross profit of approximately $1.9 million during the year ended December 31, 2021 , compared to approximately $0.8 million during the year ended December 31, 2020 - an increase of 138%, noting that the current year included approximately $0.4 million of inventory write-downs.
    • Reduced operating expenses to approximately $4.3 million during the year ended December 31, 2021 from approximately $7.9 million during the year ended December 31, 2020 due to a reduction in non-cash share based payment expenses, advertising and promotional costs and professional fees.
    Key 2021 Annual and Q4 Corporate and Business Highlights
    • Completed a full corporate rebrand of "Phyto Extractions Inc." to "Adastra Holdings Ltd." to better align the Company's name and image as a comprehensive leader in cannabis extraction, distillation and product manufacturing.
    • Acquired PerceiveMD, which opened the door for Phyto and Adastra to break new ground as providers of cannabis and psychedelic therapies to Canadians and people around the world.
    • Launched Phyto Extractions Full Spectrum Vape Cartridge Line.
    • Completed the acquisition of Phyto Extractions to drive accelerated growth and profitability through a comprehensive strategy of product innovation and enhanced retail engagement.
    • Entered the market with the creation of THC-Free 99% Pure CBD Isolate.
    • Expanded Phyto Extractions product line distribution into Yukon and Northwest Territories .
    • Received licensing by Health Canada that will enable the Company to sell dried cannabis flower products provincially and territorially in Canada through authorized distributors and retailers.
    • Refinancing of mortgage facility to provide incremental $1.0 million of liquidity allowing Adastra to expand production capabilities for future growth.
    • Distillate production increased by 134 kg, or 90% in Q4 2021 from Q4 2020.
    • Distillate production increased from 150kg in Q4 2020 to 284kg in Q4 2021.
    • Shatter production increased to 50 kg in Q4 2021 – no shatter was produced in Q4 2020.
    Results of Operations

    For the three months and years ended December 31, 2021 and 2020


    Q4 2021

    Q4 2020

    YTD 2021

    YTD 2020

    Revenue

    $

    $

    $

    $

    Cost of sales

    1,989,604

    1,245,097

    5,628,616

    2,499,355

    Gross profit

    (1,712,154)

    (625,053)

    (3,684,925)

    (1,713,77)

    Operating expenses

    277,450

    620,044

    1,943,691

    785,581

    Net income (loss) and comprehensive income (loss)

    (2,292,255)

    (426,180)

    (4,335,429)

    (7,950,595)


    (1,668,673)

    90,473

    (2,749,939)

    (7,615,864)

    As of December 31, 2021 and 2020




    2021

    2020




    $

    $




    28,775,450

    13,736,950




    1,041,467

    60,000

    The above number have been subject to audit and reflect the consolidated results of the Company.

    Share Cancellation and Return to Treasury

    The Company is also pleased to announce that it has cancelled 10 million shares that were voluntarily returned to treasury for no valuable consideration by certain founders of the Company. The share cancellation was effective April 29, 2022 .

    As a select number of founders voluntarily surrendered the shares for no valuable consideration, the share cancellation did not constitute an "issuer bid" or an "offer to acquire" as defined in National Instrument 62‐104 – Take‐Over Bids and Issuer Bids . The total number of the issued and outstanding common shares of Adastra has been reduced from 65,970,547 to 55,970,547, or a decrease of approximately 15%.

    About Adastra Holdings Ltd.

    Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada . Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC , focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients. For more information, visit: www.adastraholdings.ca.

    Forward-Looking Information

    This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to: the Company's plans to grow in the following areas: medical product development and formulation, premium branded extraction products, dried flower products, drug formulation, sales force expansion and global opportunities; the expected benefits of the Company's plan to leverage its shelf space to sell its pre-rolls to the provincial distributors and any expected revenue growth therefrom; and other general statements regarding the Company's platform for profitable growth and creation of sustainable value for customers, partners and shareholders. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in

    regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward looking statements.

    SOURCE Adastra Holdings Ltd.

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    Adastra Announces Submission of Medical Sales License Application and Engagement of IR Labs Inc. to Provide Investor Relations Services

    Adastra Announces Submission of Medical Sales License Application and Engagement of IR Labs Inc. to Provide Investor Relations Services

    Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company"), a Health Canada Licensed cannabis company focused on processing, sales, organoleptic testing, and analytical testing, is pleased to announce the submission of its Medical Sales License application to Health Canada on April 1, 2022 .

    Adastra Announces Submission of Medical Sales License Application (CNW Group/Adastra Holdings Ltd.)

    A Medical Sales License would permit Adastra to perform the following activities:

    • Sell cannabis extracts to medical cannabis patients and licensed health practitioners;
    • Develop products classified as cannabis extracts:
      • Inhaled (vaporizer cartridge and shatter),
      • Ingested (tincture, oil, capsule, soft gel and oral spray),
      • Other (suppository);
    • Sell dried cannabis

    On August 31, 2021 , Adastra announced its acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD , a lean digital patient care platform providing complimentary assessments for alternative treatments of medical cannabis and other breakthrough therapies, such as psychedelics.

    "I am particularly excited about the future of cannabinoid-based medical treatments, especially the pharmaceutical distribution of these remedies," said Michael Forbes , Chief Executive Officer, Corporate Secretary and Director of Adastra. "Having strong ties to the medical community, I am confident that CBD, CBN and CBG specifically will play a significant role in the Canadian medical market in the near future. Adastra's ability to sell to the growing and established medical market positions the Company to leverage its existing clinics for direct-to-patient sales and pharmacy sales soon. We are also uniquely positioned to tap into my pharmacy retail network in order to provide Adastra's medical cannabinoid products to patients across Canada ."

    Engagement with irlabs

    Adastra is also pleased to announce that it has entered into an engagement letter dated effective April 8, 2022 (the "Agreement") with IR Labs Inc. ("irlabs"), whereby irlabs has agreed to provide the Company with certain investor relations services (the "Services") in the areas of: (i) capital markets advisory, including strategic advisory and introductions to investors and investment bankers; and (ii) the development and management of an investor relations and communications program, including public relations/media, social media and stakeholder relations.

    Either party may terminate the Agreement at any time by providing the other party with 30 days' prior written notice of termination. In consideration for the Services, the Company has agreed to pay irlabs a monthly fee of $10,000 in cash, plus applicable taxes (the "Monthly Fee"), due and payable on the last day of each month. The first payment will be $15,000 in cash, plus applicable taxes, due and payable on April 30, 2022 . The Company has also agreed to reimburse irlabs for all reasonable out-of-pocket expenses incurred in connection with irlabs performing the Services. In addition, irlabs will bill a monthly charge totalling 3% of the Monthly Fee to cover subscription fees for market intelligence platforms, media monitoring, certain information retrieval services, and other ordinary course items that will not be billed to the Company on an itemized basis. irlabs has agreed not to incur any aggregate disbursements greater than $500 a month without the Company's approval. irlabs' contact person, address, email and telephone number are as follows: Alyssa Barry (Principal and Co-Founder), 400 - 22 E 5th Ave, Vancouver, BC V5T 1G8, alyssa@irlabs.ca , 604-997-0965.

    irlabs is a dynamic investor relations firm that applies innovative strategies to create visibility, drive investor engagement and make an impact. Headquartered in Vancouver, BC with team members located across North America , irlabs is industry and sector agnostic and supports both private and public companies with their investor relations programs, corporate communications and corporate governance. For more information visit www.irlabs.ca .

    About Adastra Holdings Ltd.

    Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada . Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC , focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B .C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients. For more information, visit: www.adastraholdings.ca .

    About PerceiveMD

    PerceiveMD has created the first of its kind, research-based, multidisciplinary centre for medical cannabis and other forward-thinking therapies such as psychedelics. It offers a holistic, team-based approach that focuses on the patient. Its team of nurses, pharmacists, physicians, practitioners, specialists, and educators will all work together to ensure that you are properly assessed, informed, and prescribed where appropriate. For more information, visit: www.perceivemd.ca .

    Forward-Looking Information

    This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements with respect to: (i) the anticipated grant of the Medical Sales License by Health Canada; (ii) the activities that the Company could conduct with a Medical Sales License; (iii) the effect of CBD, CBN and CBG on the Canadian medical market in the near future; (iv) the ability of the Company to leverage its existing clinics for direct-to-patient and pharmacy sales through its ability to sell to the growing and established medical market; (v) the Company's ability to benefit from a pharmacy retail network to provide Adastra's medical cannabinoid products to patients Canada -wide; and (vi) the Agreement with irlabs including the Services irlabs has agreed to provide to the Company. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) adverse market conditions; (ii) risks inherent in the cannabis extraction sector in general; (iii) changes in regulations surrounding cannabis as a controlled substance; and (iv) other factors beyond the control of the Company. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

    SOURCE Adastra Holdings Ltd.

    Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2022/11/c7439.html

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    Adastra Announces Successful Soft Launch of Endgame Brand in BC

    Adastra Announces Successful Soft Launch of Endgame Brand in BC

    Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company"), a Health Canada Licensed cannabis company focused on processing, sales, organoleptic and analytical testing, is excited to announce that its newly developed brand, Endgame, which was soft-launched last week, sold out in less than 24 hours of delivery to the British Columbia Liquor Distribution Branch ("BCLDB"). Endgame's initial SKU delivery included two varieties of vaporizer cartridges: Mosa x Blood Orange and White Rhino x Raspberry Lemon.

    "We are thrilled to bring Endgame, our first exclusive in-house brand, to market," said Michael Forbes , Chief Executive Officer, Corporate Secretary and Director of Adastra. "Selling out on day one of launch demonstrates consumer appetite for a lower cost vaporizer that delivers on quality, flavour and convenience. With added production capacity, new orders are quickly being shipped to supply our customers."

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    TerrAscend Second Quarter 2022 Revenue Increases 31% Sequentially to $65 Million

    TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) ( OTCQX: TRSSF), a leading North American cannabis operator, today reported its financial results for the second quarter ending June 30, 2022 . All amounts are expressed in U.S. dollars unless indicated otherwise and are prepared under U.S. Generally Accepted Accounting principles (GAAP).

    TerrAscend Corp. (CNW Group/TerrAscend)

    Second Quarter 2022 Financial Highlights

    • Net Sales increased 31% sequentially to $65 million as compared to $50 million in Q1 2022.
    • Gross Profit Margin was 35.5% as compared to 30.4% in Q1 2022.
    • Adjusted Gross Profit Margin 1 was 47.1% as compared to 38.4% in Q1 2022.
    • Adjusted EBITDA 1 was $5.8 million as compared to $3.3 million in Q1 2022.
    • Adjusted EBITDA Margin 1 was 8.9% as compared to 6.6% in Q1 2022.
    • GAAP Net Income was $14.2 million as compared to net loss of $16 million in Q1 2022.
    • Cash and Cash Equivalents totaled $49 million as of June 30, 2022 .

    Jason Wild , Executive Chairman of TerrAscend, commented, "We grew revenue 31% sequentially for the second quarter as New Jersey adult-use sales got off to a great start.  Growth should continue as we remain on track for each of our stores in New Jersey to achieve at least a $40 million run rate in their first full year of adult-use sales.  Adjusted EBITDA and margins grew sequentially, and I expect this to continue into the second half of the year.  The leadership team, which has been significantly bolstered over the past few quarters, remains focused on building the business for success over the long term and we will continue to make decisions with that mindset."

    Ziad Ghanem , President and Chief Operating Officer, added, "TerrAscend is focused on engaging our team members, listening to our customers, delivering quality products, and achieving operational excellence. Between our state line up and the wide-open map that will allow us to be selective on where we go next, TerrAscend is set up for strong growth for years to come. We will achieve that growth while improving margins and driving profitability."

    Financial Summary Q2 2022 and Comparative Periods

    (in millions of U.S. Dollars)


    Q2 2021



    Q1 2022



    Q2 2022


    Revenue, net



    58.7




    49.7




    64.8


    QoQ increase



    10.1

    %



    0.9

    %



    30.5

    %

    YoY increase



    71.6

    %



    -6.9

    %



    10.4

    %











    Gross profit



    34.8




    15.1




    23.0


    Adjusted Gross profit 1



    35.9




    19.1




    30.5


    Adjusted gross margin %



    61.1

    %



    38.4

    %



    47.1

    %











    Share-based compensation expense



    4.6




    3.4




    4.4


    General & Administrative expense (excluding share based comp)



    16.1




    19.2




    29.5


    % of revenue, net



    27.4

    %



    38.7

    %



    45.5

    %











    Adjusted EBITDA 1



    23.2




    3.3




    5.8


    Adjusted EBITDA % of revenue, net



    39.5

    %



    6.6

    %



    8.9

    %











    Net income (loss)



    (29.7)




    (16.0)




    14.2


    Cash used in operations



    (16.3)




    (18.8)




    (16.1)


    1. Adjusted EBITDA and the respective margin and Adjusted Gross Profit and the respective margin are non-GAAP measures. Please see discussion and reconciliation of non-GAAP measures at the end of this press release.

    Second Quarter 2022 Business and Operational Highlights

    • Held the grand opening of adult-use sales on April 21 st at its Apothecarium stores in Maplewood and Phillipsburg, New Jersey , two of only twelve dispensaries at the time to open for adult-use sales in the state.
    • Approved for hydrocarbon extraction in New Jersery with initial products launched in the quarter.
    • Successfully launched Cookies and Gage brands in New Jersey , resulting in a 40% increase in sales for the first full weekend versus the prior weekend with continued momentum and growth since launch.
    • Signed lease on new facility in New Jersey , which will accommodate expanded capacity up to the 150,000 square foot canopy limit over time.
    • Received home delivery license for medical patients in New Jersey .
    • Partnered with Cookies to open third Cookies-branded dispensary in Michigan , located in Ann Arbor .
    • Announced agreement to acquire KISA Enterprises MI, LLC and KISA Holdings, LLC ("Pinnacle"), a dispensary operator in Michigan with 5 operational locations.
    • Operationalized extraction lab and packaging facility in Michigan .
    • Introduced Khalifa Kush , a premium cannabis brand founded by Grammy Award-nominated recording artist Wiz Khalifa , at Gage Cannabis dispensaries in Michigan .
    • Announced agreement to acquire Allegany Medical Marijuana Dispensary ("AMMD") located in Cumberland, Maryland , which will enable the Company to become vertically integrated in the state.
    • Appointed Lynn Gefen as Chief Legal Officer and Corporate Secretary.

    Subsequent Events

    • Opened third New Jersey Apothecarium Dispensary in Lodi .
    • Opened first "Cookies Corner" at The Apothecarium location in Maplewood, New Jersey .
    • Exclusively launched Chris Webber's "Players Only" premium cannabis brand in Gage and Cookies dispensaries in Michigan .

    Second Quarter 2022 Financial Results
    Net sales for the second quarter of 2022 totaled $64.8 million , an increase of 30.5% sequentially and 10.4% year over year, mainly related to a partial quarter of adult use sales in New Jersey along with a full quarter of contribution related to the acquisition of Gage, partially offset by the Company's decision to discontinue non-branded wholesale sales in Michigan.

    Gross margin for the second quarter of 2022 was 35.5%. Adjusted gross margin was 47.1% as compared to 38.4% in the previous quarter, an improvement of 870 basis points quarter over quarter. The sequential margin expansion was driven by strong improvements across all of the Company's core businesses.  Adjusted gross margin excludes the one-time impact of reserves and write-downs related to aged inventory in Pennsylvania , dating back to the revamp of its cultivation facility in the second half of 2021.

    General & Administrative expenses (G&A), excluding stock-based compensation, increased $10 million versus the first quarter of 2022 to $29.5 million , mainly driven by the full quarter addition of the Gage acquisition. Excluding Michigan , G&A expenses were up $1.1 million quarter over quarter related to additional staffing and other pre-opening expenses in preparation for the start of adult use sales in New Jersey . As a percentage of revenue, G&A increased to 45.5% in the second quarter from 38.7% in the previous quarter. The increase as a percentage of revenue was impacted by the addition of Gage for a full quarter as well as staffing for all three stores in New Jersey despite the delayed opening of the Lodi store, which opened subsequent to the quarter.

    Adjusted EBITDA for the quarter was $5.8 million versus $3.3 million in the first quarter of 2022. Adjusted EBITDA margin improved from 6.6% in the first quarter to 8.9% in the second quarter. The improvement was driven by higher sales and improved gross margin, offset by higher G&A expenses with the addition of Gage for a full quarter and costs associated with the launch of adult-use in New Jersey .

    GAAP Net income for the quarter was $14.2 million , compared to a Net loss of $16.0 million in first quarter of 2022.

    Balance Sheet and Cash Flow
    Cash and cash equivalents were $49 million as of June 30, 2022 , compared to $88 million as of March 31, 2022 . The Company has ample liquidity and access to capital, mainly through its capacity for additional borrowing related to its unencumbered owned assets and minimal usage of sale leasebacks. The Company also has the ability to raise equity should the capital markets improve.

    Cash used from operations was $16.1 million for the three months ended June 30, 2022 , mainly driven by tax payments of $9.2 million and interest payments of $6.4 million . Current income taxes payable at the end of the period was $13 million .

    Capital expenditures, including deposits, were $12.3 million in the quarter, primarily related to the on-going expansion work at the Company's Maryland and Michigan cultivation and processing facilities. The Company also made final note payments of $5 million related to its previous acquisitions of HMS in Maryland and KCR in Pennsylvania.

    As of August 11, 2022 , there were 318 million basic shares outstanding including 253 million common shares, 13 million preferred shares as converted, and 52 million exchangeable shares.

    Conference Call
    TerrAscend will host a conference call today, August 11, 2022 , to discuss these results. Jason Wild , Executive Chairman, Ziad Ghanem , President and Chief Operating Officer, and Keith Stauffer , Chief Financial Officer, will host the call starting at 5:00 p.m. Eastern time . A question-and-answer session will follow management's presentation.

    CONFERENCE CALL DETAILS



    DATE:

    Thursday, August 11, 2022

    TIME:

    5:00 p.m. Eastern Time

    WEBCAST:

    Click Here

    DIAL-IN NUMBER:

    1-888-664-6392

    CONFERENCE ID:

    81354387

    REPLAY:

    416-764-8677 or 1-888-390-0541
    Available until 12:00 midnight Eastern Time Thursday, August 26, 2022

    Replay Code: 354387#


    Financial results and analyses are available on the Company's website ( www.terrascend.com ) and SEDAR ( www.sedar.com ).

    The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

    Definition and Reconciliation of Non-GAAP Measures
    In addition to reporting the financial results in accordance with GAAP, the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP measures used by management do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies. The Company believes that certain investors and analysts use these measures to measure a company's ability to meet other payment obligations or as a common measurement to value companies in the cannabis industry, and the Company calculates Adjusted Gross Profit as Gross Profit adjusted for certain material non-cash items and Adjusted EBITDA as EBITDA adjusted for certain material non-cash items and certain other adjustments management believes are not reflective of the ongoing operations and performance. Such information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company believes this definition is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of the Company's underlying business performance and other one-time or non-recurring expenses.

    The table below reconciles Gross Profit and Adjusted Gross Profit for the quarters ended June 30, 2022 , March 31, 2022 , and June 30, 2021


    For the Three Months Ended


    (in millions of U.S. Dollars)


    June 30, 2021



    March 31, 2022



    June 30, 2022


    Gross profit



    34,835




    15,140




    22,993


    Add (deduct) the impact of:










    Vape recall






    1,894




    1,071


    Accelerated depreciation






    238





    Non-cash write downs of inventory



    449







    5,894


    Relief of fair value of inventory upon acquisition



    567




    1,806




    549


    Adjusted gross profit



    35,851




    19,078




    30,507



    The table below reconciles net loss to EBITDA and Adjusted EBITDA for the quarters ended June 30, 2022 , March 31, 2022 , and June 30, 2021


    For the Three Months Ended




    June 30, 2021



    March 31, 2022



    June 30, 2022












    Net income (loss)


    $

    (29,662)



    $

    (16,006)



    $

    14,162


    Add (deduct) the impact of:










    Provision for income taxes



    6,937




    3,743




    4,688


    Finance expenses



    6,424




    6,699




    9,427


    Amortization and depreciation



    3,529




    5,084




    7,046


    EBITDA



    (12,772)




    (480)




    35,323


    Add (deduct) the impact of:










    Relief of fair value of inventory upon acquisition



    567




    1,806




    549


    Non-cash write downs of inventory



    449




    -




    5,894


    Vape recall



    -




    1,894




    1,071


    Share-based compensation



    4,648




    3,356




    4,463


    Impairment of goodwill and intangible assets



    8,640








    Loss on disposal of fixed assets



    36







    929


    Revaluation of contingent consideration



    (7)




    119




    34


    Restructuring and executive severance



    467








    Legal settlements



    740








    Other one-time items



    860




    1,974




    924


    (Gain) loss on fair value of warrants and purchase option derivative asset



    19,891




    (5,713)




    (47,345)


    Indemnification asset release



    2,599




    (25)




    3,998


    Unrealized and realized loss (gain) on investments



    (5,964)







    234


    Unrealized and realized foreign exchange loss



    3,055




    356




    (306)


    Adjusted EBITDA


    $

    23,209



    $

    3,287



    $

    5,768


    About TerrAscend
    TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, Michigan and California, licensed cultivation and processing operations in Maryland and licensed production in Canada. TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com .

    Caution Regarding Cannabis Operations in the United States
    Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States . Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States . Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

    While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.

    Forward Looking Information
    This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and include statements with respect to future revenue and profits. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.

    Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States ; and the risk factors set out in the Company's most recently filed MD&A, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com .

    The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether, as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.

    Unaudited Interim Condensed Consolidated Balance Sheets
    (Amounts expressed in thousands of United States dollars, except for per share amounts)



    At



    At




    June 30, 2022



    December 31, 2021


    Assets







    Current Assets







    Cash and cash equivalents


    $

    48,426



    $

    79,642


    Restricted cash



    605





    Accounts receivable, net



    22,189




    14,920


    Investments



    4,072





    Inventory



    54,371




    42,323


    Prepaid Expenses and other current assets



    7,655




    6,336





    137,318




    143,221


    Non-Current Assets







    Property and equipment, net



    238,797




    140,762


    Deposits



    4,698





    Operating lease right of use assets



    30,570




    29,561


    Intangible assets, net



    351,638




    168,984


    Goodwill



    240,598




    90,326


    Indemnification asset



    -




    3,969


    Other non-current assets



    4,998




    5,111





    871,299




    438,713


    Total Assets


    $

    1,008,617



    $

    581,934









    Liabilities and Shareholders' Equity







    Current Liabilities







    Accounts payable and accrued liabilities


    $

    57,535



    $

    30,340


    Deferred revenue



    2,404




    1,071


    Loans payable, current



    58,856




    8,837


    Contingent consideration payable, current



    3,028




    9,982


    Operating lease liability, current



    1,394




    1,171


    Lease obligations under finance leases, current



    384




    22


    Corporate income tax payable



    13,189




    9,621


    Other current liabilities



    3,613




    -





    140,403




    61,044


    Non-Current Liabilities







    Loans payable, non-current



    180,781




    176,306


    Contingent consideration payable, non-current



    2,620




    2,553


    Operating lease liability, non-current



    31,680




    30,573


    Lease obligations under finance leases, non-current



    4,794




    181


    Warrant liability



    6,176




    54,986


    Deferred income tax liability



    73,087




    14,269


    Financing obligations



    11,606





    Other long term liabilities



    12,502




    13,068





    323,246




    291,936


    Total Liabilities



    463,649




    352,980


    Commitments and Contingencies







    Shareholders' Equity







    Share Capital







    Series A, convertible preferred stock, no par value, unlimited shares authorized; 12,658 and 13,708 shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Series B, convertible preferred stock, no par value, unlimited shares authorized; 610 and 610 shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Series C, convertible preferred stock, no par value, unlimited shares authorized; nil and 36 shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Series D, convertible preferred stock, no par value, unlimited shares authorized; nil and nil shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Proportionate voting shares, no par value, unlimited shares authorized; nil and nil shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Exchangeable shares, no par value, unlimited shares authorized; 52,395,071 and 38,890,571 shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Common stock, no par value, unlimited shares authorized; 252,707,325 and 190,930,800 shares outstanding as of June 30, 2022 and December 31, 2021 respectively







    Additional paid in capital



    854,948




    535,418


    Accumulated other comprehensive income (loss)



    (1,063)




    2,823


    Accumulated deficit



    (315,132)




    (314,654)


    Non-controlling interest



    6,215




    5,367


    Total Shareholders' Equity



    544,968




    228,954


    Total Liabilities and Shareholders' Equity


    $

    1,008,617



    $

    581,934



    Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
    (Amounts expressed in thousands of United States dollars, except for per share amounts)



    For the Three Months Ended



    For the Six Months Ended




    June 30, 2022



    June 30, 2021




    June 30, 2022



    June 30, 2021


    Revenue


    $

    65,367



    $

    61,977




    $

    115,812



    $

    118,473


    Excise and cultivation tax



    (563)




    (3,254)





    (1,349)




    (6,396)


    Revenue, net



    64,804




    58,723





    114,463




    112,077
















    Cost of Sales



    41,811




    23,888





    76,330




    42,300
















    Gross profit



    22,993




    34,835





    38,133




    69,777
















    Operating expenses:














    General and administrative



    33,981




    20,750





    56,533




    41,142


    Amortization and depreciation



    3,016




    1,844





    5,634




    3,717


    Total operating expenses



    36,997




    22,594





    62,167




    44,859
















    (Loss) income from operations



    (14,004)




    12,241





    (24,034)




    24,918


    Other expense (income)














    Revaluation of contingent consideration



    34




    (7)





    153




    2,990


    (Gain) loss on fair value of warrants and purchase option derivative asset



    (47,345)




    19,891





    (53,058)




    25,301


    Finance and other expenses



    13,902




    8,919





    20,758




    15,309


    Transaction and restructuring costs



    627




    432





    1,242




    432


    Impairment of goodwill






    5,007








    5,007


    Impairment of intangible assets






    3,633








    3,633


    Unrealized and realized foreign exchange loss



    (306)




    3,055





    50




    5,838


    Unrealized and realized loss (gain) on investments



    234




    (5,964)





    234




    (6,192)


    Income (loss) before provision from income taxes



    18,850




    (22,725)





    6,587




    (27,400)


    Provision for income taxes



    4,688




    6,937





    8,431




    16,373


    Net income (loss)


    $

    14,162



    $

    (29,662)




    $

    (1,844)



    $

    (43,773)
















    Foreign currency translation



    280




    (3,025)





    3,887




    (5,214)


    Comprehensive income (loss)


    $

    13,882



    $

    (26,637)




    $

    (5,731)



    $

    (38,559)
















    Net income (loss) attributable to:














    Common and proportionate Shareholders of the Company


    $

    13,217



    $

    (30,660)




    $

    (3,140)



    $

    (44,834)


    Non-controlling interests



    945




    998





    1,296




    1,061
















    Comprehensive income (loss) attributable to:














    Common and proportionate Shareholders of the Company


    $

    12,937



    $

    (27,635)




    $

    (7,027)



    $

    (39,620)


    Non-controlling interests



    945




    998





    1,296




    1,061
















    Net income (loss) per share, basic and diluted














    Net income (loss) per share - basic


    $

    0.05



    $

    (0.17)




    $

    (0.01)



    $

    (0.25)


    Weighted average number of outstanding common and proportionate voting shares



    252,305,425




    182,369,839





    231,829,926




    176,901,119


    Net income (loss) per share - diluted


    $

    0.05



    $

    (0.17)




    $

    (0.01)



    $

    (0.25)


    Weighted average number of outstanding common and proportionate voting shares, assuming dilution



    257,883,711




    182,369,839





    231,829,926




    176,901,119



    Unaudited Interim Condensed Consolidated Statements of Cash Flows
    (Amounts expressed in thousands of United States dollars, except for per share amounts)


    For the Six Months Ended




    June 30, 2022



    June 30, 2021


    Operating activities







    Net loss

    $


    (1,844)


    $


    (43,773)


    Adjustments to reconcile net income to net cash provided by (used in) operating activities







    Non-cash write downs of inventory



    8,495




    699


    Accretion expense



    1,936




    (544)


    Depreciation of property and equipment and amortization of intangible assets



    12,131




    7,050


    Amortization of operating right-of-use assets



    1,074




    2,269


    Share-based compensation



    7,819




    8,215


    Deferred income tax (recovery) expense



    (787)




    285


    (Gain) loss on fair value of warrants and purchase option derivative



    (53,058)




    25,301


    Revaluation of contingent consideration



    153




    2,990


    Impairment of intangible assets






    3,633


    Impairment of goodwill






    5,007


    Loss on disposal of fixed assets



    929





    Release of indemnification asset



    3,973




    3,796


    Forgiveness of loan principal and interest






    (766)


    Unrealized and realized foreign exchange loss



    50




    5,838


    Unrealized and realized loss (gain) on investments



    234




    (6,192)


    Changes in operating assets and liabilities







    Receivables



    475




    (950)


    Inventory



    208




    (9,879)


    Prepaid expense and deposits



    1,474




    (507)


    Deposits



    206





    Other assets



    461




    389


    Accounts payable and accrued liabilities and other payables



    (8,299)




    639


    Operating lease liability



    (614)




    (1,889)


    Other liability



    (10,353)





    Contingent consideration payable



    (410)




    (11,394)


    Corporate income tax payable



    5




    (293)


    Deferred revenue



    766





    Net cash used in operating activities



    (34,976)




    (10,076)


    Investing activities







    Investment in property and equipment



    (12,500)




    (10,856)


    Investment in intangible assets



    (1,330)




    (40)


    Principal payments received on lease receivable



    392




    359


    Distributions of earnings from associates






    469


    Deposits for property and equipment



    (10,036)




    (10,583)


    Deposits for business acquisition



    (852)





    Payments made for land contracts



    (429)





    Cash received on acquisition



    24,716





    Cash portion of consideration paid in acquisitions, net of cash acquired






    (42,736)


    Net cash used in investing activities



    (39)




    (63,387)


    Financing activities







    Proceeds from options and warrants exercised



    24,158




    12,921


    Loan principal paid



    (5,203)





    Loan amendment fee paid



    (1,200)





    Proceeds from loans payable






    766


    Cash distributions to NJ partners



    (1,436)





    Capital contributions received (paid) from (to) non-controlling interests



    (448)




    (383)


    Payments of contingent consideration



    (6,630)




    (18,274)


    Payments made for financing obligations



    (460)





    Proceeds from private placement, net of share issuance costs






    173,477


    Net cash provided by financing activities



    8,781




    168,507


    Net (decrease) increase in cash and cash equivalents and restricted cash during the period



    (26,234)




    95,044


    Net effects of foreign exchange



    (4,377)




    (89)


    Cash and cash equivalents and restricted cash, beginning of period



    79,642




    59,226


    Cash and cash equivalents and restricted cash, end of period

    $


    49,031


    $


    154,181









    Supplemental disclosure with respect to cash flows







    Income taxes paid

    $


    9,213


    $


    16,381


    Interest paid

    $


    14,641


    $


    13,290


    Lease termination fee paid

    $


    3,300




    -


    Non-cash transactions







    Equity and warrant liability issued as consideration for acquisition

    $


    294,800


    $


    34,427


    Promissory note issued as consideration for acquisitions

    $


    -


    $


    6,750


    Shares issued for liability settlement

    $


    22


    $


    57


    Accrued capital purchases

    $


    9,776


    $


    336


    SOURCE TerrAscend

    Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/11/c5405.html

    News Provided by Canada Newswire via QuoteMedia

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    Second quarter GAAP revenue of $21.1 million increased 34.9% sequentially and 48.2% YoY –

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    The Greenrose Holding Company to Hold Second Quarter 2022 Conference Call on August 15, 2022 at 5:00 p.m. ET

    The Greenrose Holding Company to Hold Second Quarter 2022 Conference Call on August 15, 2022 at 5:00 p.m. ET

    The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) ("Greenrose" or the "Company"), a multi-state grower and producer of cannabis brands and products will hold a conference call on Monday, August 15, 2022, at 5:00 p.m. Eastern time to discuss its results for the second quarter ended June 30, 2022. The Company will provide its financial results in a press release prior to the conference call.

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    Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

    • Revenue of $320.3 million , up 49% year over year and 1% sequentially
    • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
    • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

    Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

    Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

    Q2 2022 Financial Highlights*

    • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
    • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
    • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
    • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
    • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
    • Cash at quarter end of $181.4 million .

    *See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

    Q2 2022 Operational Highlights

    • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
    • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
    • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
    • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
    • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
    • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
    • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

    Recent Events

    • Celebrated six year anniversary of first retail sale in Florida .
    • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
    • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
    • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
    • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
    • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

    Management Commentary
    "Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

    Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

    Financial Guidance
    Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

    Financial Highlights

    Results of Operations

    For the Three Months Ended

    For the Six Months Ended





    (Figures in millions and
    % change based on these
    figures)

    June 30,
    2022

    June 30,
    2021

    change

    March 31,
    2022

    change

    June 30,
    2022

    June 30,
    2021

    change





    Revenue

    $

    320.3

    $

    215.1

    49 %

    $

    318.3

    1 %

    $

    638.6

    $

    408.9

    56 %



    Gross Profit

    $

    182.2

    $

    144.5

    26 %

    $

    178.2

    2 %

    $

    360.3

    $

    279.7

    29 %



    Gross Margin %


    57 %


    67 %



    56 %



    56 %


    68 %




    Adjusted Gross Profit

    $

    183.4

    $

    146.7

    25 %

    $

    185.4

    -1 %

    $

    368.8

    $

    285.7

    29 %



    Adjusted Gross Margin %


    57 %


    68 %



    58 %



    58 %


    70 %




    Operating Expenses

    $

    144.2

    $

    68.2

    111 %

    $

    149.5

    -4 %

    $

    293.7

    $

    130.9

    124 %



    Operating Expenses %


    45 %


    32 %



    47 %



    46 %


    32 %




    Net Income (Loss)

    $

    (22.5)

    $

    40.9

    ---

    $

    (32.0)

    ---

    $

    (54.5)

    $

    71.0

    ---



    Adjusted Net Income (Loss)

    $

    (1.1)

    $

    47.0

    ---

    $

    1.7

    ---

    $

    0.6

    $

    85.5

    ---



    Diluted Shares Outstanding


    187.2


    133.0



    187.1



    187.1


    127.9




    EPS

    $

    (0.12)

    $

    0.31

    ---

    $

    (0.17)

    ---

    $

    (0.29)

    $

    0.55

    ---



    Adjusted EPS

    $

    (0.01)

    $

    0.35

    ---

    $

    0.01

    ---

    $

    0.00

    $

    0.67

    ---



    Adjusted EBITDA

    $

    111.0

    $

    94.9

    17 %

    $

    105.5

    5 %

    $

    216.5

    $

    185.7

    17 %



    Adjusted EBITDA Margin %


    35 %


    44 %



    33 %



    34 %


    45 %




    Conference Call
    The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

    Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

    North American toll free: 1-888-317-6003             passcode: 6100603
    International: 1-412-317-6061                               passcode: 6100603

    A live audio webcast of the conference call will be available at:
    https://app.webinar.net/eNPDleGz6oj

    A powerpoint presentation is available at
    https://investors.trulieve.com/events-presentations

    An archived replay of the webcast will be available at:
    https://investors.trulieve.com/events-presentations

    The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/quarterly-results . The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

    Non-GAAP Financial Measures
    In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.

    Reconciliation of Non-GAAP Adjusted Gross Profit
    The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Gross Profit GAAP

    $

    182.2

    $

    144.5

    $

    178.2

    $

    360.3

    $

    279.7



    Gross Margin % GAAP


    57 %


    67 %


    56 %


    56 %


    68 %



    Add (Deduct) Impact of:













    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    0.6

    $

    2.2

    $

    6.8

    $

    7.4

    $

    3.5



    Adjusted Gross Profit Non-GAAP

    $

    183.4

    $

    146.7

    $

    185.4

    $

    368.8

    $

    285.7



    Adjusted Gross Margin % Non-GAAP


    57 %


    68 %


    58 %


    58 %


    70 %



    Reconciliation of Non-GAAP Adjusted Net Income
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    17.0

    $

    4.5

    $

    17.2

    $

    34.2

    $

    6.5



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Divestment Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Adjusted Net Income (Loss) Non-GAAP

    $

    (1.1)

    $

    47.0

    $

    1.7

    $

    0.6

    $

    85.5



    Reconciliation of Non-GAAP Adjusted Earnings Per Share
    The following table presents a reconciliation of GAAP earnings (loss) per share to non-GAAP adjusted earnings per share, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Earnings (Loss) Per Share GAAP

    $

    (0.12)

    $

    0.31

    $

    (0.17)

    $

    (0.29)

    $

    0.55



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (0.01)

    $

    0.00

    $

    0.00

    $

    (0.01)

    $

    0.00



    Inventory Step Up Fair Value

    $

    0.00

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02



    Transaction, Acquisition, and Integration Costs

    $

    0.09

    $

    0.03

    $

    0.09

    $

    0.18

    $

    0.05



    Covid Related Expenses

    $

    0.00

    $

    0.01

    $

    0.00

    $

    0.00

    $

    0.04



    Divestment Non-Operating Assets

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02

    $

    0.00



    Impairment and Disposal of Long-lived Assets

    $

    0.02

    $

    0.00

    $

    0.07

    $

    0.10

    $

    0.00



    Adjusted Earnings Per Share Non-GAAP

    $

    (0.01)

    $

    0.35

    $

    0.01

    $

    0.00

    $

    0.67



    Reconciliation of Non-GAAP Adjusted EBITDA
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Interest Expense, net

    $

    19.7

    $

    6.6

    $

    17.9

    $

    37.6

    $

    14.5



    Provision For Income Taxes

    $

    44.8

    $

    29.1

    $

    42.3

    $

    87.1

    $

    63.7



    Depreciation and Amortization

    $

    30.9

    $

    6.7

    $

    29.3

    $

    60.2

    $

    12.1



    Depreciation in COGS

    $

    13.8

    $

    5.0

    $

    10.7

    $

    24.5

    $

    8.7



    EBITDA

    $

    86.7

    $

    88.3

    $

    68.2

    $

    154.9

    $

    169.9
















    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Integration and Transition Costs

    $

    5.1

    $

    1.5

    $

    5.3

    $

    10.4

    $

    1.9



    Acquisition and Transaction Costs

    $

    7.0

    $

    1.6

    $

    3.3

    $

    10.3

    $

    3.2



    Share-Based Compensation

    $

    5.7

    $

    0.7

    $

    4.6

    $

    10.3

    $

    1.5



    Other Non-Recurring Expenses

    $

    4.9

    $

    1.4

    $

    8.6

    $

    13.5

    $

    1.4



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Divestment and Sale of Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Non-Controlling Interest

    $

    (1.1)

    $

    0.0

    $

    0.0

    $

    (1.1)

    $

    0.0



    Other Expense (Income), net

    $

    (1.7)

    $

    (0.3)

    $

    (0.9)

    $

    (2.6)

    $

    (0.3)



    Fair Value of Derivative Liabilities - Warrants

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Adjusted EBITDA Non-GAAP

    $

    111.0

    $

    94.9

    $

    105.5

    $

    216.5

    $

    185.7



    Forward-Looking Statements
    This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and in the Company's filings on SEDAR at www.sedar.com . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise.

    About Trulieve
    Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S. operating in 11 states, with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .

    Facebook: @Trulieve
    Instagram: @Trulieve _
    Twitter: @Trulieve

    Investor Contact
    Christine Hersey , Executive Director of Investor Relations
    +1 (424) 202-0210
    Christine.Hersey@Trulieve.com

    Media Contact
    Rob Kremer , Executive Director of Corporate Communications
    +1 (404) 218-3077
    Robert.Kremer@Trulieve.com

    Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

    SOURCE Trulieve Cannabis Corp.

    Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

    News Provided by Canada Newswire via QuoteMedia

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    Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

    • Revenue of $320.3 million , up 49% year over year and 1% sequentially
    • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
    • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

    Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

    Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

    Q2 2022 Financial Highlights*

    • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
    • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
    • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
    • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
    • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
    • Cash at quarter end of $181.4 million .

    *See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

    Q2 2022 Operational Highlights

    • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
    • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
    • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
    • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
    • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
    • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
    • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

    Recent Events

    • Celebrated six year anniversary of first retail sale in Florida .
    • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
    • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
    • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
    • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
    • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

    Management Commentary
    "Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

    Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

    Financial Guidance
    Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

    Financial Highlights

    Results of Operations

    For the Three Months Ended

    For the Six Months Ended





    (Figures in millions and
    % change based on these
    figures)

    June 30,
    2022

    June 30,
    2021

    change

    March 31,
    2022

    change

    June 30,
    2022

    June 30,
    2021

    change





    Revenue

    $

    320.3

    $

    215.1

    49 %

    $

    318.3

    1 %

    $

    638.6

    $

    408.9

    56 %



    Gross Profit

    $

    182.2

    $

    144.5

    26 %

    $

    178.2

    2 %

    $

    360.3

    $

    279.7

    29 %



    Gross Margin %


    57 %


    67 %



    56 %



    56 %


    68 %




    Adjusted Gross Profit

    $

    183.4

    $

    146.7

    25 %

    $

    185.4

    -1 %

    $

    368.8

    $

    285.7

    29 %



    Adjusted Gross Margin %


    57 %


    68 %



    58 %



    58 %


    70 %




    Operating Expenses

    $

    144.2

    $

    68.2

    111 %

    $

    149.5

    -4 %

    $

    293.7

    $

    130.9

    124 %



    Operating Expenses %


    45 %


    32 %



    47 %



    46 %


    32 %




    Net Income (Loss)

    $

    (22.5)

    $

    40.9

    ---

    $

    (32.0)

    ---

    $

    (54.5)

    $

    71.0

    ---



    Adjusted Net Income (Loss)

    $

    (1.1)

    $

    47.0

    ---

    $

    1.7

    ---

    $

    0.6

    $

    85.5

    ---



    Diluted Shares Outstanding


    187.2


    133.0



    187.1



    187.1


    127.9




    EPS

    $

    (0.12)

    $

    0.31

    ---

    $

    (0.17)

    ---

    $

    (0.29)

    $

    0.55

    ---



    Adjusted EPS

    $

    (0.01)

    $

    0.35

    ---

    $

    0.01

    ---

    $

    0.00

    $

    0.67

    ---



    Adjusted EBITDA

    $

    111.0

    $

    94.9

    17 %

    $

    105.5

    5 %

    $

    216.5

    $

    185.7

    17 %



    Adjusted EBITDA Margin %


    35 %


    44 %



    33 %



    34 %


    45 %




    Conference Call
    The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

    Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

    North American toll free: 1-888-317-6003             passcode: 6100603
    International: 1-412-317-6061                               passcode: 6100603

    A live audio webcast of the conference call will be available at:
    https://app.webinar.net/eNPDleGz6oj

    A powerpoint presentation is available at
    https://investors.trulieve.com/events-presentations

    An archived replay of the webcast will be available at:
    https://investors.trulieve.com/events-presentations

    The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/quarterly-results . The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

    Non-GAAP Financial Measures
    In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.

    Reconciliation of Non-GAAP Adjusted Gross Profit
    The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Gross Profit GAAP

    $

    182.2

    $

    144.5

    $

    178.2

    $

    360.3

    $

    279.7



    Gross Margin % GAAP


    57 %


    67 %


    56 %


    56 %


    68 %



    Add (Deduct) Impact of:













    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    0.6

    $

    2.2

    $

    6.8

    $

    7.4

    $

    3.5



    Adjusted Gross Profit Non-GAAP

    $

    183.4

    $

    146.7

    $

    185.4

    $

    368.8

    $

    285.7



    Adjusted Gross Margin % Non-GAAP


    57 %


    68 %


    58 %


    58 %


    70 %



    Reconciliation of Non-GAAP Adjusted Net Income
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    17.0

    $

    4.5

    $

    17.2

    $

    34.2

    $

    6.5



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Divestment Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Adjusted Net Income (Loss) Non-GAAP

    $

    (1.1)

    $

    47.0

    $

    1.7

    $

    0.6

    $

    85.5



    Reconciliation of Non-GAAP Adjusted Earnings Per Share
    The following table presents a reconciliation of GAAP earnings (loss) per share to non-GAAP adjusted earnings per share, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Earnings (Loss) Per Share GAAP

    $

    (0.12)

    $

    0.31

    $

    (0.17)

    $

    (0.29)

    $

    0.55



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (0.01)

    $

    0.00

    $

    0.00

    $

    (0.01)

    $

    0.00



    Inventory Step Up Fair Value

    $

    0.00

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02



    Transaction, Acquisition, and Integration Costs

    $

    0.09

    $

    0.03

    $

    0.09

    $

    0.18

    $

    0.05



    Covid Related Expenses

    $

    0.00

    $

    0.01

    $

    0.00

    $

    0.00

    $

    0.04



    Divestment Non-Operating Assets

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02

    $

    0.00



    Impairment and Disposal of Long-lived Assets

    $

    0.02

    $

    0.00

    $

    0.07

    $

    0.10

    $

    0.00



    Adjusted Earnings Per Share Non-GAAP

    $

    (0.01)

    $

    0.35

    $

    0.01

    $

    0.00

    $

    0.67



    Reconciliation of Non-GAAP Adjusted EBITDA
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Interest Expense, net

    $

    19.7

    $

    6.6

    $

    17.9

    $

    37.6

    $

    14.5



    Provision For Income Taxes

    $

    44.8

    $

    29.1

    $

    42.3

    $

    87.1

    $

    63.7



    Depreciation and Amortization

    $

    30.9

    $

    6.7

    $

    29.3

    $

    60.2

    $

    12.1



    Depreciation in COGS

    $

    13.8

    $

    5.0

    $

    10.7

    $

    24.5

    $

    8.7



    EBITDA

    $

    86.7

    $

    88.3

    $

    68.2

    $

    154.9

    $

    169.9
















    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Integration and Transition Costs

    $

    5.1

    $

    1.5

    $

    5.3

    $

    10.4

    $

    1.9



    Acquisition and Transaction Costs

    $

    7.0

    $

    1.6

    $

    3.3

    $

    10.3

    $

    3.2



    Share-Based Compensation

    $

    5.7

    $

    0.7

    $

    4.6

    $

    10.3

    $

    1.5



    Other Non-Recurring Expenses

    $

    4.9

    $

    1.4

    $

    8.6

    $

    13.5

    $

    1.4



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Divestment and Sale of Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Non-Controlling Interest

    $

    (1.1)

    $

    0.0

    $

    0.0

    $

    (1.1)

    $

    0.0



    Other Expense (Income), net

    $

    (1.7)

    $

    (0.3)

    $

    (0.9)

    $

    (2.6)

    $

    (0.3)



    Fair Value of Derivative Liabilities - Warrants

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Adjusted EBITDA Non-GAAP

    $

    111.0

    $

    94.9

    $

    105.5

    $

    216.5

    $

    185.7



    Forward-Looking Statements
    This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and in the Company's filings on SEDAR at www.sedar.com . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise.

    About Trulieve
    Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S. operating in 11 states, with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .

    Facebook: @Trulieve
    Instagram: @Trulieve _
    Twitter: @Trulieve

    Investor Contact
    Christine Hersey , Executive Director of Investor Relations
    +1 (424) 202-0210
    Christine.Hersey@Trulieve.com

    Media Contact
    Rob Kremer , Executive Director of Corporate Communications
    +1 (404) 218-3077
    Robert.Kremer@Trulieve.com

    Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

    SOURCE Trulieve Cannabis Corp.

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    Trulieve Delivers Record Second Quarter 2022 Results Driven by Organic Retail Sales

    • Revenue of $320.3 million , up 49% year over year and 1% sequentially
    • Retail revenue grew 3% sequentially across industry leading U.S. network of 168 dispensaries as of June 30, 2022
    • GAAP gross margin of 57% and Adjusted EBITDA* margin of 35%

    Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced its results for the quarter ended June 30, 2022 . Results are reported in U.S. dollars unless otherwise indicated.

    Trulieve logo (PRNewsfoto/Trulieve Cannabis Corp.)

    Q2 2022 Financial Highlights*

    • Revenue increased 49% year over year to $320.3 million from $215.1 million and 1% sequentially.
    • Retail revenue increased 3% to $298.6 million and wholesale, licensing and other revenue declined by 22% sequentially to $21.7 million .
    • Gross profit of $182.2 million and GAAP gross margin of 57% in the second quarter compared to gross profit of $178.2 million and GAAP gross margin of 56% in the first quarter of 2022.
    • Net loss of $22.5 million , a sequential improvement of 30%. Adjusted net loss of $1.1 million * excludes $11.8 million of transaction, acquisition, integration, and other non-recurring charges primarily associated with the Harvest acquisition, a $5.2 million earnout payment for acquired cultivation in Arizona , $4.3 million in asset impairments associated with the closing of redundant cultivation facilities in Florida and a loss of $0.7 million due to the repurposing of a development stage production site in Arizona .
    • Adjusted EBITDA grew 17% year over year to $111.0 million *, or 35% of revenue in the second quarter compared to Adjusted EBITDA of $105.5 million *, or 33% of revenue in the first quarter of 2022.
    • Cash at quarter end of $181.4 million .

    *See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

    Q2 2022 Operational Highlights

    • Opened 6 new dispensaries in Fort Myers and Zephyrhills, Florida ; Framingham, Massachusetts ; Coatesville, Pennsylvania ; and Parkersburg and South Charleston, West Virginia . Relocated one dispensary in New Port Richey, Florida .
    • Exited the second quarter with operations in 11 states, with 32% of our retail locations outside of the state of Florida .
    • Produced over 10 million finished goods units in the second quarter, up 79% year over year.
    • Received Notice of Award of Provisional Dispensary License for District Southeast-3 in Columbus, Ohio .
    • Successfully launched Modern Flower TM , Muse TM , Roll One TM , and Sweet Talk TM branded products across markets including Arizona , Florida , Maryland , Pennsylvania and West Virginia .
    • Hosted inaugural Analyst Day event featuring production facility tours including a new 750 thousand square foot automated cultivation facility and corporate presentation showcasing production, retail, branding and marketing, and data analytics capabilities.
    • Expanded roll out and applications of Customer Data Platform for targeted marketing campaigns.

    Recent Events

    • Celebrated six year anniversary of first retail sale in Florida .
    • Opened 7 new dispensaries in Phoenix, Arizona ; Apopka , Coral Springs , Hollywood , and Kissimmee, Florida ; and Hurricane and Morgantown, West Virginia .
    • New Phoenix dispensary represented first branded Trulieve store in Arizona , kicking off statewide rebranding efforts to continue over the next year.
    • Currently operate 175 retail dispensaries and over 4.0 million square feet of cultivation and processing capacity in the United States .
    • Elected to discontinue wholesale operations in Nevada and are currently evaluating options to exit the market.
    • Made an initial contribution to the Smart and Safe Florida campaign, which aims to legalize adult use marijuana in Florida through a ballot initiative in November 2024 .

    Management Commentary
    "Our team delivered strong second quarter results with topline growth and margin improvement by staying focused on our plan," said Kim Rivers , Trulieve CEO. "During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape."

    Rivers continued, "We are committed to meeting customer needs, improving performance in core markets, managing cash wisely, and streamlining operations across the company. We strongly believe that taking firm and decisive action now will better position the organization to capitalize on numerous catalysts in the years ahead. Trulieve has the capital, discipline, and experience to navigate short term headwinds and emerge as a stronger company."

    Financial Guidance
    Factoring in strategic changes across our business, the impact of inflation on consumer spending, softness in wholesale markets, and the lack of visibility in the current macroeconomic environment, we are adjusting 2022 revenue guidance by 5% from the low end of our prior outlook to $1.25 billion to $1.3 billion . Accordingly, we anticipate Adjusted EBITDA will be in the range of $415 million to $450 million .

    Financial Highlights

    Results of Operations

    For the Three Months Ended

    For the Six Months Ended





    (Figures in millions and
    % change based on these
    figures)

    June 30,
    2022

    June 30,
    2021

    change

    March 31,
    2022

    change

    June 30,
    2022

    June 30,
    2021

    change





    Revenue

    $

    320.3

    $

    215.1

    49 %

    $

    318.3

    1 %

    $

    638.6

    $

    408.9

    56 %



    Gross Profit

    $

    182.2

    $

    144.5

    26 %

    $

    178.2

    2 %

    $

    360.3

    $

    279.7

    29 %



    Gross Margin %


    57 %


    67 %



    56 %



    56 %


    68 %




    Adjusted Gross Profit

    $

    183.4

    $

    146.7

    25 %

    $

    185.4

    -1 %

    $

    368.8

    $

    285.7

    29 %



    Adjusted Gross Margin %


    57 %


    68 %



    58 %



    58 %


    70 %




    Operating Expenses

    $

    144.2

    $

    68.2

    111 %

    $

    149.5

    -4 %

    $

    293.7

    $

    130.9

    124 %



    Operating Expenses %


    45 %


    32 %



    47 %



    46 %


    32 %




    Net Income (Loss)

    $

    (22.5)

    $

    40.9

    ---

    $

    (32.0)

    ---

    $

    (54.5)

    $

    71.0

    ---



    Adjusted Net Income (Loss)

    $

    (1.1)

    $

    47.0

    ---

    $

    1.7

    ---

    $

    0.6

    $

    85.5

    ---



    Diluted Shares Outstanding


    187.2


    133.0



    187.1



    187.1


    127.9




    EPS

    $

    (0.12)

    $

    0.31

    ---

    $

    (0.17)

    ---

    $

    (0.29)

    $

    0.55

    ---



    Adjusted EPS

    $

    (0.01)

    $

    0.35

    ---

    $

    0.01

    ---

    $

    0.00

    $

    0.67

    ---



    Adjusted EBITDA

    $

    111.0

    $

    94.9

    17 %

    $

    105.5

    5 %

    $

    216.5

    $

    185.7

    17 %



    Adjusted EBITDA Margin %


    35 %


    44 %



    33 %



    34 %


    45 %




    Conference Call
    The Company will host a conference call and live audio webcast on August 10 , 2022, at 8:30 A.M. Eastern time , to discuss its second quarter 2022 financial results.

    Interested parties can join the conference call by dialing in as directed below. Please dial in 15 minutes prior to the call.

    North American toll free: 1-888-317-6003             passcode: 6100603
    International: 1-412-317-6061                               passcode: 6100603

    A live audio webcast of the conference call will be available at:
    https://app.webinar.net/eNPDleGz6oj

    A powerpoint presentation is available at
    https://investors.trulieve.com/events-presentations

    An archived replay of the webcast will be available at:
    https://investors.trulieve.com/events-presentations

    The Company's Form 10-Q for the quarter ended June 30, 2022 , will be available on the SEC's website or at https://investors.trulieve.com/financial-information/quarterly-results . The Company's Management Discussion and Analysis for the period and the accompanying financial statements and notes will be available under the Company's profile on SEDAR and on its website at https://investors.trulieve.com/financial-information/quarterly-results . This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

    Non-GAAP Financial Measures
    In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including adjusted gross profit, adjusted net income, adjusted net income per diluted share, and adjusted cash flow from operations. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.

    Reconciliation of Non-GAAP Adjusted Gross Profit
    The following table presents a reconciliation of GAAP gross profit to non-GAAP adjusted gross profit, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Gross Profit GAAP

    $

    182.2

    $

    144.5

    $

    178.2

    $

    360.3

    $

    279.7



    Gross Margin % GAAP


    57 %


    67 %


    56 %


    56 %


    68 %



    Add (Deduct) Impact of:













    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    0.6

    $

    2.2

    $

    6.8

    $

    7.4

    $

    3.5



    Adjusted Gross Profit Non-GAAP

    $

    183.4

    $

    146.7

    $

    185.4

    $

    368.8

    $

    285.7



    Adjusted Gross Margin % Non-GAAP


    57 %


    68 %


    58 %


    58 %


    70 %



    Reconciliation of Non-GAAP Adjusted Net Income
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP adjusted net income, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Transaction, Acquisition, and Integration Costs

    $

    17.0

    $

    4.5

    $

    17.2

    $

    34.2

    $

    6.5



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Divestment Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Adjusted Net Income (Loss) Non-GAAP

    $

    (1.1)

    $

    47.0

    $

    1.7

    $

    0.6

    $

    85.5



    Reconciliation of Non-GAAP Adjusted Earnings Per Share
    The following table presents a reconciliation of GAAP earnings (loss) per share to non-GAAP adjusted earnings per share, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Earnings (Loss) Per Share GAAP

    $

    (0.12)

    $

    0.31

    $

    (0.17)

    $

    (0.29)

    $

    0.55



    Add (Deduct) Impact of:













    Warrant Liability Adjustment

    $

    (0.01)

    $

    0.00

    $

    0.00

    $

    (0.01)

    $

    0.00



    Inventory Step Up Fair Value

    $

    0.00

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02



    Transaction, Acquisition, and Integration Costs

    $

    0.09

    $

    0.03

    $

    0.09

    $

    0.18

    $

    0.05



    Covid Related Expenses

    $

    0.00

    $

    0.01

    $

    0.00

    $

    0.00

    $

    0.04



    Divestment Non-Operating Assets

    $

    0.00

    $

    0.00

    $

    0.01

    $

    0.02

    $

    0.00



    Impairment and Disposal of Long-lived Assets

    $

    0.02

    $

    0.00

    $

    0.07

    $

    0.10

    $

    0.00



    Adjusted Earnings Per Share Non-GAAP

    $

    (0.01)

    $

    0.35

    $

    0.01

    $

    0.00

    $

    0.67



    Reconciliation of Non-GAAP Adjusted EBITDA
    The following table presents a reconciliation of GAAP net income (loss) to non-GAAP Adjusted EBITDA, for each of the periods presented:

    (Amounts expressed in millions
    of United States dollars)

    For the Three Months Ended

    For the Six Months Ended





    June 30, 2022

    June 30,
    2021

    March 31,
    2022

    June 30,
    2022

    June 30,
    2021





    Net Income (Loss) GAAP

    $

    (22.5)

    $

    40.9

    $

    (32.0)

    $

    (54.5)

    $

    71.0



    Add (Deduct) Impact of:













    Interest Expense, net

    $

    19.7

    $

    6.6

    $

    17.9

    $

    37.6

    $

    14.5



    Provision For Income Taxes

    $

    44.8

    $

    29.1

    $

    42.3

    $

    87.1

    $

    63.7



    Depreciation and Amortization

    $

    30.9

    $

    6.7

    $

    29.3

    $

    60.2

    $

    12.1



    Depreciation in COGS

    $

    13.8

    $

    5.0

    $

    10.7

    $

    24.5

    $

    8.7



    EBITDA

    $

    86.7

    $

    88.3

    $

    68.2

    $

    154.9

    $

    169.9
















    Inventory Step Up Fair Value

    $

    0.6

    $

    0.0

    $

    0.4

    $

    1.0

    $

    2.5



    Integration and Transition Costs

    $

    5.1

    $

    1.5

    $

    5.3

    $

    10.4

    $

    1.9



    Acquisition and Transaction Costs

    $

    7.0

    $

    1.6

    $

    3.3

    $

    10.3

    $

    3.2



    Share-Based Compensation

    $

    5.7

    $

    0.7

    $

    4.6

    $

    10.3

    $

    1.5



    Other Non-Recurring Expenses

    $

    4.9

    $

    1.4

    $

    8.6

    $

    13.5

    $

    1.4



    Covid Related Expenses

    $

    0.2

    $

    1.7

    $

    0.4

    $

    0.6

    $

    5.5



    Impairment and Disposal of Long-lived Assets

    $

    4.3

    $

    0.0

    $

    13.8

    $

    18.1

    $

    0.0



    Divestment and Sale of Non-Operating Assets

    $

    0.7

    $

    0.0

    $

    2.7

    $

    3.4

    $

    0.0



    Non-Controlling Interest

    $

    (1.1)

    $

    0.0

    $

    0.0

    $

    (1.1)

    $

    0.0



    Other Expense (Income), net

    $

    (1.7)

    $

    (0.3)

    $

    (0.9)

    $

    (2.6)

    $

    (0.3)



    Fair Value of Derivative Liabilities - Warrants

    $

    (1.4)

    $

    0.0

    $

    (0.8)

    $

    (2.3)

    $

    0.0



    Adjusted EBITDA Non-GAAP

    $

    111.0

    $

    94.9

    $

    105.5

    $

    216.5

    $

    185.7



    Forward-Looking Statements
    This news release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements relate to the Company's expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding the Company's expected revenue and adjusted EBITDA for fiscal 2022, its plans for streamlining operations and navigating short term headwinds to emerge stronger, and potential expansion of the Company's operations.  Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 and in our periodic reports subsequently filed with the United Sates Securities and Exchange Commission and in the Company's filings on SEDAR at www.sedar.com . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise.

    About Trulieve
    Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the U.S. operating in 11 states, with leading market positions in Arizona , Florida , and Pennsylvania . Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. Trulieve is listed on the CSE under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF. For more information, please visit Trulieve.com .

    Facebook: @Trulieve
    Instagram: @Trulieve _
    Twitter: @Trulieve

    Investor Contact
    Christine Hersey , Executive Director of Investor Relations
    +1 (424) 202-0210
    Christine.Hersey@Trulieve.com

    Media Contact
    Rob Kremer , Executive Director of Corporate Communications
    +1 (404) 218-3077
    Robert.Kremer@Trulieve.com

    Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/trulieve-delivers-record-second-quarter-2022-results-driven-by-organic-retail-sales-301603021.html

    SOURCE Trulieve Cannabis Corp.

    Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2022/10/c8218.html

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