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CanadaBis Capital Inc Announces Record Q2 F2022 Results with $274,000 in Earnings and an Adjusted EBITDA of $572,168

Press Release

FOR IMMEDIATE RELEASE: CALGARY, AB, MARCH 29, 2022 – CanadaBis Capital (the “Company” or “CanadaBis Capital”) (TSXV: CANB.V) a premium cannabis and concentrates producer, is pleased to announce its Second Quarter Fiscal 2022 financial results for the three month period ending
January 31, 2022.

“Our Stigma Grow brands continue to deliver products that are in demand, and our dedication  towards our quality continue to prove our strength in the market.”, said Travis McIntyre, CEO of  CanadaBis.  “While we continue to focus on profitability, we are delighted to be able to post yet  another  record  quarter  of  revenue.  Our  product  launch  momentum also  continues  to  accelerate  with  13 new  products launched  this  quarter.  We  exit  Q2  F2022  with  our  most  aggressive and innovate pipeline of new products in the Company’s history.

Financial Highlights

  • The Company posted record earnings of $273,975 and $3,056 for the three-and six-months  ending January 31, 2022.
  • Sales increased 53% quarter  over  quarter  due  to an increase in  demand  of  the  new SKUs  distributed in  the market. The  Company has  seen  record  sales  of its infused pre-rolls and  first of its kind, moonrocks in Alberta and BC. These products under  the Stigma Brand are  packaged in 3 pack 0.5 grams per pre roll format and 2 grams packaged for the moonrock  format.
  • Q2  F2022  Adjusted  EBITDA  was  a  record  $572,168 due  primarily  to  increased  Dab  Bods
  • Brand  awareness  and  the  launch  of  the  High  Priestess Brand  into  the  marketplace.  The brands have been  extremely  well  received  and  sold-out  multiple  times  with  increasing  orders from provincial purchasers.
  • Management  believe  these  positive  trends  will  continue  into  Q3  F2022 based  on  high  demand and increasing purchase orders from the Provinces of Alberta, Ontario and British  Columbia on new products such as moonrocks, infused pre-rolls, Live Rosin vapes and Live CBD cartridges.
  • 13 new  SKU’s were  launched  in Q2  F2022 under Dab  Bods brand, High  Priestess  and the  Black and White NGL Brand into 5 Provincial bodies
  • The  Company  sold  over  180,000  units  of  combined  concentrate  and  dry  flower  for  the quarter ended January 31, 2022, a significant increase compared to the 101,000 units sold  over the comparative period.
  • Input  costs  have  decreased  significantly  with  the  addition  of  multiple  suppliers  and  new  formulas developed to save costs while increasing effects and flavors for the customers.
  • Company re-formulated its concentrate lines to meet the demands of the current clients to  maintain larger terpene profiles across the lineup
  • Company re-negotiated with other Cannabis Cultivators which allowed significant reduction  in costs and this trend is expected to continue into 2022 as more Cultivators are joining the  industry.

Quarterly Highlights

Three Months Ended Six Months Ended
January 31, 2022 January 31, 2021 January 31, 2022 January 31, 2021
Gross revenue $3,892,049 $2,011,146 $6,336,852 $3,246,692
Excise duty 1,114,734 196,363 1,714,240 257,324
Net revenues 2,777,315 1,814,783 4,622,612 2,989,368
Cost of sales 1,306,734 1,286,001 2,219,702 2,038,613
Gross profit (loss) 1,470,581 528,782 2,402,910 950,755
Net income (loss) and
comprehensive income (loss)
273,975 (556,302) 3,056 (1,259,678)
Net income (loss) per
share (basic and diluted)
$0.00 $(0.00) $0.00 $(0.01)
Adjusted EBITDA $572,168 Not assessed $586,310 Not assessed
  • Adjusted EBITDA is a Non-GAAP performance measure. Refer to “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” for further details. Presenting Adjusted EBITDA only for the three and six months ended January 31, 2022. EBITDA calculation shown by entity to present the breakdown of each entity.

Extraction and tolling:
The net extraction and tolling revenue for the three month period ended January 31, 2022, was $3.8 million compared to $2.0 million for the corresponding period of 2021. The Company was able to significantly increase its sales of extract products, in the provinces of Alberta, Ontario, Manitoba, Saskatchewan and British Columbia. During Q2 F2022, the Company increased its sales through its product awareness campaign and the launch of several new SKUs, for which the market reaction was extremely positive. The Company has seen growth in the sales of the High THC and High Terpene infuse pre-rolls and the launch of Moonrocks. The Company was able to launch other products specials for the holiday season and its first ever, female line that increased market awareness and demand.

Cultivation and wholesale:
Net cultivation and wholesale revenue for the three month period ended January 31, 2022, was $179,827 compared to zero for the corresponding period in 2021. During the period, the Company increased its pre-roll sales across 5 provinces. During Q2 2021, the Company had minimal presence in the cultivation and wholesale market because it had only received its sales license two months before that period end. For Q2 F2022, the Company has established its Craft Candle premium pre-rolls under the Stigma brand.

General
Management monitors the results of its operating segments separately for making decisions about resource allocation and performance assessment. Segment performance is evaluated on several measures, the most significant being profit and loss, which is measured consistently with the definition of profit and loss in the Financial Statements. Management also uses gross profit excluding fair value adjustments as a key performance indicator by reportable segment. Management adjusts external pricing of its products/service to end users to ensure that optimal gross profit percentages are being met, while pricing within market demand and expectations. Selling prices are adjusted to account for fluctuations in cost to achieve consistent in gross profit by product line and service.

Given the Company’s position as a vertically integrated Cannabis company/producer, management will continue to adjust internal strategy based on external factors causing fluctuations in either selling prices of products/services and input cost of products and services to ensure capacity allocation is being optimized on products/services in highest demand, while ensuring mandated gross profit margins are being achieved.

Management notes that the current climate of Cannabis industry is extremely competitive and saturated with multiple products across the Nation. The Company has several competitive advantages to ensure long-term success within the industry. In the short-term, this relates primarily with respect to our butane hydrocarbon (BHO) extraction process. Management continues to explore various concentrate products to diversify it offer to the market by formulating new products to meet demand.

About CanadaBis Capital Inc.
CanadaBis Capital Inc. (TSXV:CANB) is a vertically integrated Canadian cannabis company
focused on achieving large-scale growth in the global cannabis market – with specific attention
paid to supplying the fast-emerging concentrates category through their Stigma Grow
cultivation and BHO extraction facility.

Subsidiaries:
• Stigma Pharmaceuticals Inc. – 100% held;
• 1998643 Alberta Ltd. (operating as “Stigma Grow”) – 100% held; include cultivation and
wholesale, extraction and tolling
• Full Spectrum Labs Ltd. (operating as “Stigma Roots”) – 100% held;
• 2103157 Alberta Ltd. (operating as “INDICAtive Collection”) -100% held; the retail
operation, and
• Goldstream Cannabis Inc. – 95% held.

Acting as the cornerstone for everything they offer, Stigma Grow continuously strives to address the market demands and lingering stigmas within the legal cannabis industry head-on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada’s legal cannabis industry.

For more information on CanadaBis Capital or Stigma Grow visit:
www.canadabis.com
www.stigmagrow.ca
or contact:
Travis McIntyre CEO
[email protected]
Investor Relations
[email protected]
1-888-STIGMA1

ILR4

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