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Hill Street Beverage Company Inc. (TSXV: BEER) ("Hill Street" or the "Company") reported its third quarter results for the period ended March 31, 2021. A complete set of financial statements and Management's Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.

The third quarter of FY21 saw continued momentum for the Company as it demonstrated progress toward its ambition to pioneer the unique space where craft consumer products meet bioscience, combining deep CPG expertise and the rights to use Lexaria Bioscience Corp.'s ground-breaking DehydraTECH™ patent portfolio.

Strong performance of Hill Street's legacy alcohol-free beverages, combined with rapid growth of the Hill Avenue Cannabis Technologies business line, resulted in substantially increased the Company's gross and net revenues of 54% and 69% respectively, year-over-year.

"This quarter marked real progress as we continued to broaden our business into the progressive cannabis solutions space," said Craig Binkley, interim co-chief executive officer of the Company. "While our Hill Street alcohol-free beverages line continues to provide a strong and growing base of revenue, the rapid growth of DehydraTECH™ licensing revenues and the production of our first cannabis infused beverage in Canada are exciting proof points of our evolution."

Gross and Net Revenues from Hill Avenue Cannabis Co.'s Licensing Arrangements Grew 180% from Q2 to Q3.

The Company realized rapid growth in its recently created B2B business line, Hill Avenue Cannabis Technologies ("Hill Avenue"), which is currently focused on licensing usage rights for DehydraTECH™ patented global Intellectual Property to CPG customers for application in cannabis infused consumer products. The Company continues to focus on growing these existing relationships and pursuing new licensing relationships with extractors and other manufacturers of consumer goods whose products are infused with cannabis and or hemp extracts.

"In addition to the revenue growth evidenced by the Hill Avenue Cannabis Technologies business line, we're pleased to see the extremely high margin on this business, and that it is sourced largely beyond Canada, demonstrating the expanded geographic potential for our Company," said Lori Senecal, interim co-chief executive officer of the Company.

Hill Avenue Cannabis Co.'s First Beverage Produced in Preparation for Launch

Hill Avenue's first cannabis infused beverage, (V)ia Regal Pink Grape Sparkler, was produced and packaged to deliver the pipeline fill order from the Ontario Cannabis Store (OCS) and became available for retail purchase at the OCS and select retailers on May 18, 2021. The Company also began to investigate expanded Canadian distribution opportunities beyond the Ontario market for both (V)ia Regal Pink Grape Sparkler and its companion product (V)ia Regal White Grape Sparkler.

Progress Continued on Securing Cannabis License for Hill Avenue Through the Lucknow Facility

The Company continued planning for its licensed cannabis operations at the Lucknow facility which is strategically located near Pearson Airport in Mississauga, Ontario. The Company remains committed to obtaining the Health Canada Standard Processor License for the facility to produce DehydraTechTM powder, even as the Company has encountered challenges in terms of construction permits, scarcity of materials and labour shortages due to COVID.

Consolidated Hill Street Beverage Company Inc. Substantially Increased Gross and Net Revenues Year Over Year by 54% and 69% Respectively, Despite Pandemic Challenges

Coincidentwith driving its cannabis initiatives, Hill Street's legacy alcohol free business showed strong momentum in the quarter. Consolidated gross revenue increased by 54% versus the same quarter a year ago, to $774,747 from $502,997. Net Revenue grew by 69% increasing from $388,536 in the previous Q3 2020, to $655,259 in Q3 2021. In addition to Hill Avenue Cannabis Co. growth, alcohol-free sales increased, driven by presumed ongoing trend amongst many consumers to make more mindful decisions about their consumption habits and due to strong orders from retail partners to replenish stock following pandemic related shortages. Additionally, online sales for the Company's alcohol-free products increased 176% versus the same quarter a year ago, as customer loyalty to the program showed strength, with many repeat and month to month purchasers.

Gross Margin percentage increased significantly year-over-year for the quarter from 32% to 44%, primarily driven by favourable Cannabis licensing margins.

Hill Street's CFO, Hinta Chambers stated, "Beyond the strong increases in gross and net revenue, we are pleased to report a solid improvement in net earnings and gross margin by focusing on growing our higher margin business lines."

The Company initiated a Private Placement to Fund its Growth Agenda

During the quarter, the Company announced a non-brokered private placement of units to raise capital to support its global growth agenda. It anticipates that this capital will fund the next phase of corporate development as the Company continues to build out programs to monetize the global patent usage rights to DehydraTECHTM (R) fast-acting emulsion technology from Lexaria Bioscience Corp. The private placement closed on May 9, 2021, for gross proceeds to the Company of $3,403,884.

RESULTS OF OPERATIONS

The following table summarizes certain financial information of the Company for the three months ended March 31, 2021 and March 31, 2020. It also summarizes certain financial information for the nine months ended March 31, 2021 and March 31, 2020.

Results for the Period EndedQuarter Ended March 31, 2021Quarter Ended
March 31, 2020
Nine Months Ended
March 31, 2021
Nine Months Ended
March 31, 2020
Gross Revenue$774,747$502,997$2,034,726$1,990,473
Chargebacks, finance fees, and listing fees-$119,488-$114,461-$359,006-$583.222
Net Revenue$655,259$388,536$1,675,720$1,407,251
Direct Costs$317,155$226,366$809,701$773,630
Gross profit$338,104$162,170$866,019$633,621
     
Operating Expenses (excl. One-time & Non Cash)$884,739$421,347$2,092,925$1,841,540
Other One-time Expenses$47,643$238,843$71,479$1,350,886
Non Cash Expenses$146,199$312,497$401,711$635,058
     
Loss before other Income (Expense)-$740,476-$810,517-$1,700,096-$3,193.863
     
Other income (Expenses)    
   Foreign exchange gain (loss)$15,463$14,092$13,483$,335
   Gain on favourable interest rate$6,541-$6,541-
   Loss on conversion of Debt-$1,168--$1,168-
   Gain on Settlement of liability$59,253-$65,983 
   Write-off of intangibles----$8,000
   Write-off of inventory----$1,535-$23,466
   Other Income$--$30-
Loss and comprehensive loss for the period$660,387$796,425$1,616,762$3,224,994
Basic and diluted loss per common share($0.00)$0.01$0.01$0.03
Weighted average number of common shares outstanding141,905,150110,475,579125,375,081102,033,744

 


About Hill Street Beverage Company Inc. (TSXV: BEER)

Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.'s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.

Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.

Check out Hill Street's award-winning alcohol-free line-up and order product to be delivered straight to your home at www.hillstreetbeverages.com, and cannabis related business activities and products at www.hillavenuecannabis.com.

For more information:

Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc.lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc.craig@hillstreetbevco.com

FORWARD-LOOKING STATEMENTS

Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects", and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Not for dissemination in the United States.

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Cronos Group and Ginkgo Bioworks Announce Achievement of THCV Equity Milestone

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) ("Cronos"), an innovative global cannabinoid company, and Ginkgo Bioworks (NYSE: DNA) ("Ginkgo"), the leading horizontal platform for cell programming, today announced the achievement of the third target productivity milestone in their partnership to produce eight cultured cannabinoids. Using Ginkgo's platform for organism design and development, Cronos has successfully achieved the productivity target for tetrahydrocannabivarin (THCV), a cannabinoid hypothesized to reduce the appetite-enhancing property of THC. Access to additional rare cannabinoids will support Cronos' innovation pipeline and commercialization strategy.

(PRNewsfoto/Ginkgo Bioworks)

Launched in 2018 with the goal of accessing rare molecules in the cannabis plant to create innovative and differentiated products that would otherwise be cost-prohibitive, the partnership between Cronos and Ginkgo aims to produce cultured cannabinoids at industrial scale. The program combines Cronos' deep understanding of the biological structure and function of cannabinoids with Ginkgo's vast experience designing microorganisms for the production of cultured products across pharmaceuticals, agriculture and more.

In August 2021 , Ginkgo and Cronos announced the achievement of its first equity milestone for cannabigerolic acid (CBGA). In October 2021 , Cronos launched its first cultured CBG product, SPINACH FEELZ™ Chill Bliss 2:1 THC|CBG gummy , which quickly gained consumer awareness, and according to Hifyre data has achieved 2.4% market share in the gummies category in Canada as of the week-ended June 11, 2022 . Cronos went on to launch its SPINACH FEELZ™ Chill Bliss 7:1 THC|CBG vape in January 2022 .

"Continuing to hit these productivity milestones in partnership with Ginkgo fuels our innovation pipeline focused on creating borderless products utilizing rare cannabinoids that amplify and differentiate the consumer experience," said Mike Gorenstein , Chairman, President and CEO of Cronos. "We are excited about the possibilities that THCV is expected to give us and look forward to getting more products with rare cannabinoids into market."

"Working with Cronos to develop innovations in cannabis is an opportunity for us to apply synthetic biology in a way that is helping bring the cannabis industry forward and make a real impact on its market and the customers it serves," said Jason Kelly, CEO and cofounder of Ginkgo Bioworks. "The progress we've made thus far in our collaboration is a true testament to both the potential of synthetic biology and the world-class teams at Cronos and Ginkgo."

As a result of the achievement of the final productivity target for THCV, Cronos has issued to Ginkgo approximately 2.2 million common shares.

About Cronos
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos  is building an iconic brand portfolio. Cronos diverse international brand portfolio includes Spinach ® , PEACE NATURALS ® , Lord Jones ® , Happy Dance ® and PEACE+™. For more information about Cronos and its brands, please visit: thecronosgroup.com .

CRONOS MEDIA CONTACT:
media.relations@thecronosgroup.com

CRONOS INVESTOR CONTACT:
investor.relations@thecronosgroup.com

About Ginkgo Bioworks
Ginkgo is building a platform to enable customers to program cells as easily as we can program computers. The company's platform is enabling biotechnology applications across diverse markets, from food and agriculture to industrial chemicals to pharmaceuticals. Ginkgo has also actively supported a number of COVID-19 response efforts, including K-12 pooled testing, vaccine manufacturing optimization and therapeutics discovery. For more information, visit www.ginkgobioworks.com .

GINKGO BIOWORKS INVESTOR CONTACT:
investors@ginkgobioworks.com

GINKGO BIOWORKS MEDIA CONTACT:
press@ginkgobioworks.com

Forward-looking Statements of Cronos Group Inc.
This press release may contain information that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws (collectively, "Forward-looking Statements"). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact. Forward-Looking Statements include, but are not limited to, statements with respect to: Cronos' expectations regarding the potential success of, and the costs and benefits associated with, its partnership with Ginkgo; expectations about the development of the cannabis industry and potential demand for cultured cannabinoids; Cronos' commercialization and planned THCV product launch; the partnership's aim to develop eight cultured cannabinoids; Cronos' and Ginkgo's positioning to elevate the cannabis industry through cannabinoid and product innovation to unlock the next generation of its potential; the use of Cronos' and Ginkgo's combined capabilities to make the benefits of cannabinoids more accessible to consumers; and Cronos' intention to build an international iconic brand portfolio and develop disruptive intellectual property. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, financial results, results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Cronos' Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the period ended March 31, 2022 , both have which been filed on SEDAR and EDGAR and can be accessed at www.sedar.com and www.sec.gov/edgar , respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.

Forward-Looking Statements of Ginkgo Bioworks
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the potential success of the partnership and Ginkgo's cell programming platform. These forward-looking statements generally are identified by the words "believe," "can," "project," "potential," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the effect of Ginkgo's business combination with Soaring Eagle Acquisition Corp. ("Soaring Eagle") on Ginkgo's business relationships, performance, and business generally, (ii) risks that the business combination disrupts current plans of Ginkgo and potential difficulties in Ginkgo's employee retention, (iii) the outcome of any legal proceedings that may be instituted against Ginkgo related to its business combination with Soaring Eagle, (iv) volatility in the price of Ginkgo's securities now that it is a public company due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, changes in laws and regulations affecting Ginkgo's business and changes in the combined capital structure, (v) the ability to implement business plans, forecasts, and other expectations after the completion of the business combination, and identify and realize additional opportunities, (vi) the risk of downturns in demand for products using synthetic biology, (vii) the unpredictability of the duration of the COVID-19 pandemic and the demand for COVID-19 testing and the commercial viability of our COVID-19 testing business, and (viii) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Ginkgo's quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC") on May 16, 2022 and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.

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SOURCE Ginkgo Bioworks

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