CANB Canadabis Capital Inc

• Positive earnings per share for the second consecutive quarter and fifth consecutive quarter generating net income
• Net income grew 373% over the same period in 2022
• Gross revenue in Q2/23 was the highest since inception at $9.6 million, and grew 23% over Q1/23
• Net revenue grew 124% to a record $6.2 million, while gross profit increased 120% in fiscal Q2/23 compared to the same period in 2022
• Record Adjusted EBITDA¹ totaled $1.6 million, an increase of 175% year-over-year

CALGARY, AB, April 3, 2023 /CNW/ - CanadaBis Capital Inc. (the "Company" or "CanadaBis") (TSXV: CANB), a premium vertically integrated Canadian cannabis company, is pleased to announce our second quarter fiscal 2023 results, marking another period of record results for the Company. Growth was driven by a combination of continued sales increases, input cost optimization, and the success of over 100 recently introduced SKUs, positioning CanadaBis to continue the successful execution of our growth strategy. The Company's Financial Statements and Notes, as well as Management's Discussion and Analysis ("MD&A") are available on CanadaBis' website and filed on SEDAR at www.sedar.com.

"I am immensely proud of our achievements during Q2/23 as we have once again delivered a consecutive quarter of record sales, gross profit, net income, and adjusted EBITDA¹," commented Travis McIntyre, CEO of CanadaBis. "By putting customer preferences first and concentrating on increasing unit sales while streamlining costs, we have accomplished significant financial results that provide the Company with considerable momentum for the future. The success of our new and existing product lines under the Stigma brand and the Dab Bod brands form the foundation of this momentum, and we are eager to leverage it to continue creating value for our investors."

SECOND QUARTER AND FIRST HALF FISCAL 2023 HIGHLIGHTS

• Positive Net Income and Earnings per Share –Net income was positive for the fifth consecutive quarter, and grew 373% over Q1/23 totaling $1.3 million in Q2/23, with earnings per share of $0.01. Net income was $2.0 million for the six month period.
• Gross and Net Revenue Highest in History – Gross revenue in Q2/23 totaled $9.6 million, 23% higher than Q1/23 and 146% higher than the same period in 2022, and was $17.3 million for the first half representing a 175% increase compared to the comparable period in 2022, as continued growth and demand was realized for new and existing stock keeping units (SKUs) launched in the 2022 fiscal year.
• Record Adjusted EBITDA¹ - Adjusted EBITDA¹ totaled $1.6 million in Q2/23, 63% higher than the prior quarter and a 175% increase over Q2/22.
• Strong Market Perception Leads to Growing Unit Sales – Over 450,000 units of combined concentrate and dry flower were sold in Q2/23, marking a corporate record and an 18% increase compared to the previous quarter, driven primarily by increased brand awareness, continued growth of our Dab Bod product sales, and the launch of our High Priestess brand.
• Deep Innovation Pipeline and Continued Reformulation to Better Meet Demand – We have continuously launched new SKU's and new products based on feedback from current customers, as well as making ongoing adjustments to certain concentrate lines by optimizing their terpene and cannabinoid profiles to enhance product marketability.
• Streamlined Costs and Operations – We continued to manage input costs despite inflationary pressures by negotiating rates between multiple suppliers and cannabis cultivators, a trend that is expected to continue throughout 2023 as more suppliers join the industry, while also implementing new procedures in our production lines to cut operational costs.

QUARTERLY HIGHLIGHTS (Q2/23 AND H1/23)

CanadaBis has gained significant momentum in our fiscal 2023 second quarter and first half, setting the stage for a remarkable balance of the year. The Company plans to become a dominant player in various Canadian cannabis market segments by leveraging our innovative and diverse product lines to drive growth and deliver value to shareholders. To continue gaining further market share, CanadaBis will utilize our broad-ranging brand portfolio, unique products and services, and ability to capitalize on the latest industry advancements.

Our success to date has been largely driven by continuing to introduce a comprehensive range of SKUs within seven provinces during fiscal 2023, which has been met with positive market reception, as demonstrated by another quarter of record revenue, net income and Adjusted EBITDA in Q2/23. We intend to continue advancing innovative brands, and creating new products that cater to evolving customer preferences. As a vertically integrated cannabis company, Canadabis intends to adjust our approach in response to external factors that may cause fluctuations in selling prices or input costs with the view to optimizing focus and resource allocation toward the products and services in the highest demand, while remaining committed to realizing targeted gross profit margins.

We look forward to maintaining our strong momentum and posting continued strong performance through the upcoming quarter, driven by a sustained emphasis on cost control and increasing sales demand from provinces such as Alberta, Ontario, and British Columbia for products such as moonrocks, infused pre-rolls, Live Rosin vapes, and high CBD cartridges. By building on this positive momentum, CanadaBis is confident in our ability to continue executing on our growth strategy to deliver compelling value for shareholders.

CanadaBis Capital Inc. (TSXV:CANB) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from cultivation to retail, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, we remain focused on finding and capitalizing on chances to grow, diversify and continue to lead our industry.

Our integrated subsidiaries:

• Stigma Pharmaceuticals Inc. – 100% held
• 1998643 Alberta Ltd. (operating as "Stigma Grow") - 100% held; www.stigmagrow.ca
• Full Spectrum Labs Ltd. (operating as "Stigma Roots") - 100% held
• 2103157 Alberta Ltd. (operating as "INDICAtive Collection") -100% held; www.indicativecollection.ca
• Goldstream Cannabis Inc. - 95% held

Stigma Grow is a cutting-edge cannabis cultivation and extraction company positioned advantageously to meet the unmet market demands and 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.

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and six months ended January 31, 2023. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.

Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs.

Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include but are not limited to statements with respect to our business and operations; timing of the Sundial products coming to market; the demand and market for live-resin vape cartridges, and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions including: the ability of the Company's products to compete with the pricing and product availability on the black-market; the market demand for the Company's products; and assumptions concerning the Company's competitive advantages. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; ability to sustain or create a demand for a product; requirement for further capital; delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Company's continuous disclosure on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have a material adverse effect on our future results, performance or achievements.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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

SOURCE CanadaBis Capital Inc.