HASH Simply Solventless Concentrates Ltd

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CALGARY, AB, May 27, 2024 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to provide Q2 2024 gross revenue, adjusted EBITDA and net income guidance including record projected quarterly gross revenue and the continuation of SSC's quarterly positive adjusted EBITDA and normalized net income streak to nine and seven quarters respectively.

Q2 2024 Guidance

SSC projects record quarterly gross revenue during Q2 2024 of approximately $4,000,000 (Q1 2024 - $3,122,232), representing a growth rate of 28% quarter over quarter. SSC's continued revenue growth is primarily attributable to SSC's brands Astrolab, and Frootyhooty, and SSC's acquisition of Lamplighter in January 2024.

SSC also projects Q2 2024 adjusted EBITDA of approximately $850,000 (Q1 2024 - $611,571) (see Non-IFRS Financial Measures, below), representing a growth rate of 39% quarter over quarter, and net income of approximately $750,000 (Q1 2024 - $502,536), representing a growth rate of 49% quarter over quarter. SSC's streak of positive adjusted EBITDA and normalized net income is expected to extend to nine and seven quarters respectively.

Jeff Swainson, President and CEO of SSC, stated: "On the heels of our oversubscribed $800,000 unit offering completed in April, we expect record Q2 2024 revenue of $4,000,000 and our seventh straight quarter of normalized net income. We are encouraged by our trajectory and our focus remains on profitable revenue growth both organically and through opportunistic acquisitions."

SSC has no long-term debt and approximately 53.8 million common shares outstanding (basic), of which approximately 30% are held by insiders. Of SSC's outstanding common shares, approximately 17.0 million (32%) are escrowed pursuant to TSX Venture Exchange ("TSXV") policies. Further details with respect to SSC's escrowed securities can be found in SSC's filing statement dated October 31, 2023. SSC also advises that it has filed a revised 2023 annual MD&A and Q1 2024 MD&A to correct a data entry error on the quarterly results summary pages.  SSC's filing statement and the revised MD&As are available on SSC's SEDAR+ profile at www.sedarplus.ca.

About Simply Solventless Concentrates Ltd.

SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC's mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers.

For more information regarding SSC, please see www.simplysolventless.ca.

Notice on Forward Looking Information

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained 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", "will", "estimates", "believes", "intends", "expects", "projected", "approximately" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning capitalizing on SSC's business plan and SSC's expected growth, results of operations and performance. SSC cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of SSC, including expectations and assumptions concerning SSC, the timing and market acceptance of products, competition in SSC's markets, SSC's reliance on customers, fluctuations in interest rates, SSC's ability to maintain good relations with its customers, employees  and other stakeholders, changes in law or regulations, SSC's ability to protect its intellectual property, as well as other risks and uncertainties, including those described in SSC's filings available on SEDAR+ at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances 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 SSC. The reader is cautioned not to place undue reliance on any forward-looking statements. 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, and SSC 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 expressly required by securities law.

Future Oriented Financial Information

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about gross revenue, adjusted EBITDA and net income of SSC, which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about SSC's future business operations. SSC and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the SSC's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. SSC disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Differences in the timing of capital expenditures or revenues and variances in production estimates can have a significant impact on the key performance measures included in SSC's guidance. SSC's actual results may differ materially from these estimates.

Non-IFRS Financial Measures

This press release includes references to "adjusted EBITDA", which is not defined under International Financial Reporting Standards (IFRS). The intent of this non-IFRS measure is to provide additional useful information to investors and analysts. This non-IFRS measure does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other entities. As such, this non-IFRS measure should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA is calculated as income before interest, taxes, depreciation and amortization expenses. Adjusted EBITDA is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of capital structure, taxation and depreciation, but may not be appropriate for other purposes. Adjusted EBITDA is not defined under IFRS and therefore should not be considered an alternative to, or more meaningful than, income (loss) and comprehensive income (loss).

The following table reconciles net income (loss) to EBITDA:

The following table reconciles net income (loss) to Adjusted EBITDA:

The following table reconciles net income (loss) to Normalized Net Income:

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither 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 Simply Solventless Concentrates Ltd.