VANCOUVER, BC / ACCESSWIRE / June 29, 2023 / 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis cultivator and producer, is pleased to announce its third quarter financial results ("Q3 2023") For the nine months ended April 30, 2023, and 2022. All amounts expressed are in Canadian dollars.
The Company owns 91% of Alternative Medicine Association (AMA), the Company's cultivation and production subsidiary focused on the medical and adult-use cannabis market, and 100% of consumer-packaged goods manufacturer Infused MFG LLC (Infused). The Company's revenue is derived from wholesale cannabis sales in Nevada (AMA), and from the sale of hemp-derived wellness products (Infused) under the Canna Hemp™ brand sold across the US via e-commerce at cannahemp.com
Q3 2023 Consolidated Operating Highlights
The Company recorded revenues of $4.1 million for Q3 2023 and $13.3 million YTD 2023, compared to $4.3 million for Q3 2022 and $9.9 million YTD 2022. During the reporting period, the Company continued its retrofit and upgrade of the cultivation facility's irrigation piping system, which negatively impacted flower cultivation and yields. Despite the disruption in production, AMA improved revenues by 12% from $3.6 million in its previous quarter in 2023. Improvements and maintenance to the building will continue into Q4 2023.
Expenses were $1.8 million for Q3 2023 and $3.9 YTD 2023, while expenses were $13.7 million for Q3 2022 and $18.7 million YTD 2022.
Gross margin was ($1.6 million) for Q3 2023 and a loss of $1 million YTD 2023. The decline in margins resulted from a change in the fair value of certain AMA inventories, and from non-normalized expenses incurred by infrastructure upgrades.
Net loss was $3.4 million for Q3 2023, of which $2.5 million were non-cash charges from a net realizable value adjustment related to certain AMA inventories due to the renovation and upgrading of the Company's cultivation facility. Adjusted EBITDA was a loss of $2.8 million for Q3 2023. Cash at the end of the period was $1.7 million.
Mr. Paul Rosen, Chairman and CEO of 1933 Industries commented, "I am pleased to report on the substantial completion of the upgrade of the irrigation and humidification systems in our cultivation facility. This infrastructure undertaking was a necessary step to increase production of high-quality flower and trim for our sought-after cannabis products, which are consistently ranked as top sellers in Nevada. The upgrade will continue into the current quarter and is important for our long-term growth. Despite the construction in progress, we increased our revenue from the previous quarter. Demand for the Company's AMA products remains strong and has continued to accelerate into the current quarter."
Financial statements are prepared in accordance with International Financial Reporting Standards. Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information
Please note the next financial release dates in accordance with the continuous disclosure schedule set out by the British Columbia Securities Commission:
2023 Financial Release Dates
|Reporting Quarter||Release Date|
|Q4/YE 2023||November 28, 2023|
|Q1/2024||January 1, 2024|
|Q2/2024||April 2, 2024|
|Q3/2024||July 2, 2024|
|Q4/YE 2024||November 28, 2024|
About 1933 Industries Inc.
1933 Industries is a Nevada-based company, focusing on the cultivation and manufacturing of a large portfolio of cannabis consumer-packaged goods in a variety of formats for both the wholesale and retail markets. Its product offerings through its in-house brands include: wholesale flower, pre-rolls, and extracted products under the AMA and Level X brands for the Nevada market; and Canna Hemp™, a national cannabidiol (CBD) brand of wellness products that includes tinctures, gummies, topicals and sports recovery products. The Company owns 91% of Alternative Medicine Association, LC (AMA) and 100% of Infused MFG LLC (Infused). For more information, please visit www.1933industries.com
About Alternative Medicine Association
AMA is a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis products. AMA's extensive menu of cannabis products include: craft cannabis flower, pre-rolls, full spectrum oils, high quality distillates, proprietary blends of terpenes, vaporizer products and boutique concentrates such as shatter, crumble, batter, sugar wax, diamonds, and live resin. Ultra-craft brand Level X is an exclusive collection of exotic strains, selected specifically for their distinctive terpene profiles, high THC levels, and flavonoids. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that's exceptional, potent, and consistent in quality. www.amanev.com
AMA is also licensed in Nevada as an adult-use cannabis distributor.
About Canna Hemp™
With over 60 products in its portfolio, the Canna Hemp™ brand offers products in a variety of verticals and consumption formats, including, effects-based tinctures, topicals, vape pens and cartridges, gummies, and capsules for Sleep, Relief, Calm, Focus and Energy. High-grade CBD and a proprietary blend of terpenes formulated for specific effects are key differentiators for the Canna Hemp™ line. The Company recently introduced previously untapped cannabinoids Cannabigerol (CBG) and Cannabinol (CBN) to its portfolio of products with a new line of natural tinctures and gummies as well as functional mushrooms under the Ether Wellness brand.
For further information please contact:
Alexia Helgason, VP, IR, Marketing, Media
Paul Rosen, CEO
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: 1933 Industries Inc.
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