CANB Canadabis Capital Inc

CALGARY, AB, Dec. 31, 2024 /CNW/ - CanadaBis Capital (the "Company" or "CanadaBis Capital") (TSXV: CANB.V) a premium cannabis and concentrates producer, is pleased to announce its First Quarter Fiscal 2025 financial results for the three month period ending October 31, 2024.

"Our 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 Multiple new products launched this quarter. We exit Q1 F2025 with our most aggressive and innovate pipeline of new products in the Company's history.

Financial Highlights

• The Company realized its Record gross revenue of $9.6 million for October 31, 2024, and 7% higher than the same corresponding period of 2023.
  
  
• The Company achieved positive net income of $321,569 for the three months ended October 31, 2024. The Company continues to market its Resin Infused Pre-rolls, Shatter Infused Pre-rolls, Resin Infused Flower, along with Moonrocks (Moonrocks are whole flower, coated in resin and rolled in kief). The Company was able to maintain sales of its newest product line, Super Slim Cigarette Style Pre-Rolls, the Electric Dartz. These new products were packaged in 10 packs 0.4 grams per roll both infused and non infused.
  
  
• Adjusted EBITDA also showed positive earnings with $675,892 for the three months
  
  
• Stigma Grow's deep innovation sales pipeline is showcased by the consistent launch of new SKU's and new products driven by customer demand.
  
  
• The Company sold over 570,000 units of combined concentrate and dry flower for the three months ended October 31, 2024, a 4% increase compared to the 550,000 units sold over the corresponding period in 2024.
  
  
• The Company continues to manage its input expenses through negotiation with multiple suppliers to save costs while increasing concentrate yields.
  
  
• The Company is in the process of shipping its first international sales to Europe. The expectation is that this would be the next significant phase of the Company's mission in growth and new geographic area of existing revenue stream for Cultivation and Wholesale.
  
  
• Stigma Grow also continues to re-formulate its concentrate lines to meet current clients' demands to maintain larger terpene and cannabinoid profiles across the lineup.
  
  
• Negotiations with other Cannabis Cultivators are ongoing by the Company which has allowed significant reduction in costs, a trend that is expected to continue through 2025 as more Cultivators reposition themselves in the industry
  
  
• The Company announced the launch of the latest addition to the Dab Bods brand
  
  
• lineup – a groundbreaking 60%+ double-infused pre-roll. This new offering sets a new benchmark for THC potency in the Canadian market.
  
  
• Dab bods Brand continues to grow with the demand across Cananda and is will be launching 2 new exciting products in the DAB N DIPS and the CANADAS 1st DAB N GO both products will revolutionize the way cannabis is consumed by offering discreet usage.

QUARTERLY HIGHLIGHTS

General
Overall gross revenues for the period ended October 31, 2024 increased to $9.6 million from $9.0 million in the corresponding period of 2024. This increase was due to continued growth and demand from new and existing SKUs launched under the Dab Bod Brands and the industry's demand for new innovative products such as the +60s Pre-rolls and our famous milled flower and Dartz. Net revenue of $5.1 million compared to $5.7 million for the corresponding period of 2024 or 11.74% decrease. Net Revenue for Q1 2025 of $5.1 million increased over Q4 2024 of $3.9 million by $1.2 million or 31%. The Company has experienced growth in the existing Provinces due to both new launches and the performance of existing products. The Company has released several versions of the new cigarette style pre-roll in infused and non-infused as well as the new "Dap N Go" that has been well received in the concentrate space. The Province of Manitoba has seen higher increases from our new and existing products. See Segmented Reporting section to this MD&A, for a more detailed discussion.

The Company was able to initiate more cost savings initiatives during Q1 2025, through cost savings by renegotiating input material pricing while also implementing new procedures in its production lines to cut and manage operational costs. Management is of the expectation that these new initiatives will be realized throughout 2025.

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

CAUTIONARY STATEMENT

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 Oct 31, 2024. 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.