Building on the 2022 momentum, the Company
forecasts continued strong topline growth, gross margin expansion,
debt reduction, and positive adjusted EBITDA
VANCOUVER, BC, Jan. 26,
2023 /CNW/ - Simply Better Brands Corp.
("SBBC" or the "Company") (TSX Venture: SBBC) (OTCQB:
PKANF) is pleased to provide an update concerning its business
progress in 2022, its outlook for 2023 and a $5 million non-brokered private
placement.
2023 Outlook
Preliminary unaudited net sales for 2022 are expected to be
between USD$65.5 and USD$66.0 million compared to net sales of
USD$15.6 million achieved in 2021.
These results exceeded guidance press released to the market in
fiscal 2022. Preliminary fourth quarter net sales are expected to
be between USD$23.1 and USD$23.6 million. In 2022, the key drivers of
growth were robust PureKana customer acquisition, distribution and
the expansion on TRUBAR.
The preliminary unaudited gross margin for the fourth quarter
and the full year 2022 are expected to be consistent with the gross
margin for the nine months ended September
30, 2022 (67% of net sales).
The Company's audited financials for the period ended
December 31, 2022 are scheduled to be
filed on April 30, 2023.
For our 2023 Outlook:
- The Company's expectation for consolidated net sales to exceed
USD$80 million;
- The Company expects gross margin as a percentage of net sales
to be between 58% and 60%; and
- The Company expects to achieve positive Adjusted EBITDA in the
range of USD$3-4 million.
"To continue our topline growth expansion in 2023, the Company
plans to invest in expansion by channel, category, and geography
across our diverse branded portfolio. These investments will be
made in concert with a strong focus on increasing adjusted EBITDA.
In 2022, our performance-driven team was able to deliver quality
topline revenue growth of over 400%, gross margin expansion, and
adjusted EBITDA improvement on a year-over-year basis, while
simultaneously reducing our debt. It is proof of the Company's
ability to acquire and build clean ingredient wellness brands and
expand them into omni-channel environments with solid financial
rigor. As we look to 2023, we remain focused on connecting our
emerging brands with Millennial consumers on their wellness journey
through consumer-centric innovation and channel expansion. Based
upon the preliminary results of 2022, we enter 2023 with strong
momentum," says SBBC CEO, Kathy
Casey.
Non-Brokered Private
Placement
The Company is pleased to announce a fully subscribed,
non-brokered private placement for 20,000,000 units
("Units") at a price of $0.25
per Unit for aggregate gross proceeds of $5,000,000 (the "Offering"). The Offering
is expected to include participation from VRG Capital and other
strategic investors. In addition, it is expected that Kathy Casey, Chief Executive Officer and an
insider of the Company, will also participate in the Offering.
Each Unit will consist of one common share of the Company
("Common Share") and one-half of one common share purchase
warrant (each whole such common share purchase warrant, a
"Warrant"). Each Warrant shall be exercisable into one
additional Common Share at an exercise price of $0.45 per Warrant for twenty-four months from
closing of the Offering.
It is anticipated that the net proceeds of the Offering will be
used for new product development, channel expansion, geographic
expansion, debt reduction and general corporate working capital
purposes.
The Offering is scheduled to close on or about February 6, 2023, or such other date as
determined by the Company, and is subject to certain conditions
including, but not limited to receipt of TSX Venture Exchange
acceptance.
The Company may pay certain eligible finders a finder's fee
comprised of a cash commission of up to 7% of the gross proceeds
of the Offering and transferable finder's warrants equal to up to
7% of the aggregate number of Units sold under the Offering. Such
finder's warrants shall entitle the holder to acquire one Unit of
the Company at a price of $0.25 for a
period of 24 months from the Closing Date.
Subject to compliance with applicable regulatory requirements
and in accordance with National Instrument 45-106 Prospectus
Exemptions ("NI 45-106"), the Offering is being
made to purchasers resident in all provinces of Canada, except Quebec, the United
States and in certain foreign jurisdictions. All securities
issued in connection with the Offering will be subject to a hold
period of four months from the date of closing.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
securities in any jurisdiction in which such offer, solicitation,
or sale would be unlawful including any of the securities in
the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933
Act"), or any state securities laws and may not be offered or
sold within the United States or
to, or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws, or an exemption from
such registration requirements is available.
About Simply Better Brands
Corp.
Simply Better Brands Corp. leads an international omni-channel
platform with diversified assets in the emerging plant-based and
holistic wellness consumer product categories. The Company's
mission is focused on leading innovation for the informed
Millennial and Generation Z generations in the rapidly growing
plant-based, natural, and clean ingredient space. The Company
continues to focus on expansion into high-growth consumer product
categories including CBD, plant-based food and beverage, and the
global pet care and skin care industries. For more information on
Simply Better Brands Corp., please visit:
https://www.simplybetterbrands.com/investor-relations.
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.
Forward-Looking
Information
Certain statements contained in this news release constitute
"forward-looking information" and "forward looking statements" as
such terms are used in applicable Canadian securities laws.
Forward-looking statements and information are based on plans,
expectations and estimates of management at the date the
information is provided and are subject to certain factors and
assumptions, including, among others, that the Company's financial
condition and development plans do not change as a result of
unforeseen events, the impact of the COVID-19 pandemic, the
regulatory climate in which the Company operates, and the Company's
ability to execute on its business plans. Specifically, this news
release contains forward-looking statements relating to, but not
limited to: the launch of the Brand, completion of the initial
payment under the Agreement, the Earnout Payments and SBBC's
continued ownership of the Brand, statements relating to the
successful closing of the Offering and anticipated timing thereof
and the intended use of proceeds.
Forward-looking statements and information are subject to a
variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking statements and information.
Factors that could cause the forward-looking statements and
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, ability to obtain
necessary regulatory approvals for the transaction, as well as the
other risks and uncertainties applicable to the CBD or broader
wellness industries and to the Company, and as set forth in the
Company's annual information form available under the Company's
profile at www.sedar.com.
There is no representation by the Company that actual results
achieved will be the same in whole or in part as those referenced
in the forward-looking statements and the Company 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 may be required
by applicable securities law.
Financial Outlook
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about the financial results for the year ended
December 31, 2022, including net
sales and gross margin, all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
out under the heading "Forward-Looking Information". The actual
financial results of the Company may vary from the amounts set
out herein and such variation may be material. The Company and its
management believe that the financial outlook has been prepared
on a reasonable basis, reflecting management's best estimates and
judgments and the FOFI contained in this press release was
approved by management as of the date hereof. However, because
this information is subjective and subject to numerous risks, it
should not be relied on as necessarily indicative of future
results. Except as required by applicable securities laws, the
Company undertakes no obligation to update such FOFI. FOFI
contained in this press release was made as of the date hereof and
was provided for the purpose of providing further information
about the Company's anticipated future business operations.
Readers are cautioned that the FOFI contained in this press
release should not be used for purposes other than for which it is
disclosed herein.
SOURCE Simply Better Brands Corp.