Cannabis
Hill Street Reports FY 2022 Q2 & Year-to-Date Results, Expansion of DehydraTECH(TM) Licensing Business into New States, and Ticker Change to Reflect Hill Street’s Growth and Evolution
Highlights:
- Increased gross profit for the six months ended December 31, 2021 by 12% Year over Year with a 9% increase in net revenue Year over Year
- Grew gross profit margin for the six months ended December 31, 2021 from 42% to 48% Year over Year, reflecting the improved financial impact of the DehydraTECH™ licensing business
- Expanded rights in Illinois and Massachusetts to existing partner Dehydr8, LLC for licensing of DehydraTECH™ fast-acting cannabinoid delivery system technology to IL and MA contract manufacturers and licensed producers for B2B and B2C THC applications
- Intends to obtain approval of the TSX Venture Exchange to change the Company’s ticker symbol from “BEER” to “HILL”, to reflect the Company’s growth and evolution
Toronto, Ontario–(Newsfile Corp. – March 1, 2022) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company“) reported its fiscal year 2022 second quarter results for the three-month and six-month periods ended December 31, 2021. A complete set of financial statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars unless otherwise stated.
HIGHLIGHTS OF SECOND QUARTER BUSINESS OPERATIONS
Hill Avenue Cannabis Technologies continued its expansion into new geographic markets and with new product formats
The Company expanded the reach of a number of its DehydraTECH™ licensees as the licensees introduced their popular DehydraTECH™-powered products into new states and launched new products in the quarter. In FY2022 Q2, Nuka Enterprises LLC (1906)’s best-selling signature line of fast-acting swallowable THC pills (known as Drops) hit shelves in Arizona, and Cannadips launched a THC version of their popular original CBD pouches in California.
Added Distribution of Hill Avenue Cannabis Brands’ (V)ia Regal beyond Ontario into new provinces British Columbia and Northwest Territories
In FY2022 Q2, Hill Street’s co-packing partner Molecule Inc. secured orders from the provincial cannabis boards of British Columbia and the Northwest Territories for the original (V)ia Regal Pink Grape Sparkler and the newly-launched (V)ia Regal White Grape Sparkler, both premium cannabis-infused sparklers made from grapes imported from European vineyards.
Submitted application for a New Health Canada Cannabis Research License and continued progress on securing a Cannabis Processing License for the Ontario Lucknow Facility
The Company submitted an application for a Health Canada research license for its Lucknow cannabis facility in Mississauga, Ontario and also continued preparations for obtaining the Health Canada Standard Processor License for the facility, which will enable the Company to produce DehydraTECH™ fast-acting cannabinoid powder for potential B2B and B2C sales in Canada. The Company has begun construction at the facility, but delays related to municipal permits for the build-out are impacting the timing for submission of that Standard Processor License application to Health Canada.
Permanent CEO named subsequent to the quarter
Subsequent to the end of Q2, on January 6, 2022, the Company announced the appointment of Craig Binkley as CEO. Binkley had been operating in the interim Co-CEO role along with fellow board member Lori Senecal since February 9, 2021. Lori Senecal has transitioned out of the interim Co-CEO role and will continue in her Board of Director role.
FINANCIAL HIGHLIGHTS FOR THE SIX MONTHS ENDING DECEMBER 31, 2021
Financial results for the six months year-to-date show significant improvements that reflect the growing impact of the DehydraTECH™ business on the Company’s financial fundamentals.
Net revenue increased 9% for the six-month period ending December 31, 2021 compared to the same period prior year, while gross profit increased 12% and gross profit margin improved six points from 42% to 48%. After adjusting for the impact of discontinued alcohol-free beer operations and inventory valuation adjustments made in the first half of FY 2021, net revenue for the first six months of FY 2022 increased 13%, while gross profit increased a full 30% and gross profit margin improved nine points from 39% to 48% for the six-month period.
“The year-to-date performance continued to exhibit the transformative power of our DehydraTECH™ licensing business on the overall financial measures of Hill Street”, commented Craig Binkley, CEO of Hill Street. “The consolidated revenues, gross profit and gross profit margin are all improved by the escalating impact of this critical growth driver”.
Q2 FINANCIAL HIGHLIGHTS
While the six-month year-to-date financial results show strong positive trends, second quarter comparisons to year ago were negatively impacted by a quarterly shift in alcohol-free beverage revenues in the prior year.
Q2 FY21 was an extraordinary quarter for Hill Street alcohol-free beverage revenues, as sales were shifted from Q1 FY21 and elevated dramatically beyond normal by the impact of retailers and distributors restocking empty shelves and pipeline inventories that were emptied by global pandemic and supply chain issues in Q1 FY21. Comparative revenues year ago also included the alcohol-free beer business that has since been discontinued.
As a result of the quarterly revenue shift and the discontinuation of alcohol-free beer, consolidated net revenues for Q2 FY22 declined 32% vs. Q2 prior year, moderating the six-month net revenue growth to 9%. After the quarterly shift and recovery in inventories, future net revenues are expected to reflect positive category trends in alcohol free wine and growth for the fiscal year.
The quarterly shift in revenue also resulted in gross profit declining 33%, moderating the six-month gross profit gain to 12%. The increasing importance of the DehydraTECH™ licensing business allowed the Q2 gross profit margin to remain equal to year ago at 44%, although below the 48% margin for the full six-month period ending December 31, 2021.
RESULTS OF OPERATIONS
The following table summarizes certain financial information of the Company for the three months and six months ended December 31, 2021, and the three months and six months ended December 31, 2020.
| Consolidated Results for the Period Ended | Quarter Ended December 31, 2021 |
Quarter Ended December 31, 2020 |
Six Months Ended December 31, 2021 |
Six Months Ended December 31, 2020 |
|
| Gross Revenue | $576,622 | $875,529 | $1,237,105 | $1,259,979 | |
| Chargebacks, finance fees, and listing fees | -$67,885 | -$129,780 | -$123,629 | -$239,518 | |
| Net Revenue | $508,737 | $745,749 | $1,113,476 | $1,020,461 | |
| Direct Costs | -$252,280 | -$363,840 | -$522,597 | -$492,546 | |
| Gross profit | $256,457 | $381,909 | $590,879 | $527,915 | |
| Operating Expenses (excl. One-time & non-Cash) | $794,938 | $757,466 | $1,444,954 | $1,208,186 | |
| Other One-time Expenses | $0 | $19,337 | $16,146 | $23,837 | |
| Non-Cash Expenses | $187,291 | $88,891 | $406,592 | $255,513 | |
| Loss before other Income (Expense) | -$725,772 | -$483,785 | -$1,276,813 | -$959,620 | |
| Other income (Expenses) | |||||
| Foreign exchange gain (loss) | $7,872 | -$3,497 | $9,114 | -$1,980 | |
| (Loss) gain on Settlement of liability | -$2,933 | $6,730 | -$2,720 | $6,730 | |
| Loss) gain on fair value of Consideration | $20,945 | $0 | -$14,471 | $0 | |
| Write-off of inventory | -$2,522 | -$0 | -$20,579 | -$1,535 | |
| Other Income | $2,934 | $30 | $6,434 | $30 | |
| Loss and comprehensive loss for the period | -$699,476 | -$480,522 | -$1,299,036 | -$956,375 | |
| Basic and diluted loss per common share | ($0.00) | ($0.00) | ($0.01) | ($0.01) | |
| Weighted average number of common shares outstanding | 212,294,452 | 122,399,917 | 210,647,548 | 117,289,721 |
OTHER ANNOUNCEMENTS
Signed new DehydraTECH™ Licensing Agreements with existing Michigan partner DeHydr8, LLC (“D8”) for expansion of D8’s rights into Illinois and Massachusetts for potential B2B and B2C applications
Based on the success of D8’s team since acquiring DehydraTECH™ rights in Michigan in signing top-quality Michigan licensed producers to produce THC products powered by DehydraTECH™, the Company is pleased to announce that it has expanded the reach of D8’s DehydraTECH™ rights to add the new states of Illinois and Massachusetts.
Granting DehydraTECH™ rights to D8 in Illinois and Massachusetts represent further steps that the Company is taking to rapidly mobilize and monetize the patented DehydraTECH™ technology by deploying a state-by-state US rollout model to continue to accelerate the Company’s financial and operational progress. Hill Street and D8 have used their joint experiences gained in Michigan to create a scalable operating model for state-by-state expansion of the DehydraTECH™ licensing business that progresses from start to monetization over an approximately 5-month period.
Approval Sought from TSX Venture Exchange for Ticker Change from “BEER” to “HILL”
The Company is pleased to announce that it intends to obtain the approval of the TSX Venture Exchange to change the Company’s ticker symbol from “BEER” to “HILL”. The Company expects that its common shares will begin trading on the TSX Venture Exchange under the new symbol “HILL” at market open on March 3, 2022.
This ticker change reflects the Company’s growth and evolution beyond the domestic beverage business towards building a global, multi-business company pioneering the space where premium crafted consumer products meet bioscience.
No action is required by existing shareholders with respect to the ticker symbol change and the CUSIP/ISIN numbers assigned to the Company’s common shares will not be changed.
Re-Filing of FY 2022 Q1 Financial Statements
The Company also announces today that it has re-filed its unaudited condensed interim consolidated financial statements for the three-month period ended September 30, 2021 in order to incorporate a notice advising the reader that the statements have not been reviewed by an auditor. The re-filed financial statements replace and supersede the previously filed original financial statements filed on November 29, 2021 and will be available on SEDAR on March 1, 2022.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company Inc. is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of cannabis ingredients.
Hill Street Beverages brands include Vin(Zero) alcohol-free wines and Hill Street Craft Brewed Lager, and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Craig Binkley, Chief Executive Officer
[email protected].
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements 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”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, 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 the Company. The reader is cautioned not to place undue reliance on any forward-looking information. 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. 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 required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination in the United States.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115230
TORONTO and GLIL YAM, Israel, Sept. 11, 2024 /PRNewswire/ — IM Cannabis Corp. (“IMC” or the “Company“) (NASDAQ: IMCC) (CSE: IMCC), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that Mr. Shmulik Arbel has been appointed to the Company’s board of directors (the “Board“) effective September 9, 2024. Mr. Arbel brings a wealth of experience in strategic plans that drive profitability, as well as, finance and corporate governance, further strengthening the company’s commitment to driving growth while focusing on sustainable profitability.
“We are thrilled to welcome Shmulik to our Board of Directors,” said Oren Shuster, Chief Executive Officer of IM Cannabis. “Shmulik’s extensive international experience at Leumi, coupled with his proven track record in banking and finance will be invaluable as we continue to deliver on our strategic initiatives.”
Mr. Arbel retired as Deputy CEO from Leumi, Israel’s largest banking group, in April 2023, where he was instrumental in business growth and leading the service revolution. With over 25 years of experience at Leumi, Arbel has held senior roles throughout the organization, such as head of retail banking, head of the corporate division, and as chairman of Leumi UK. With key roles in Israel, New York and London, Mr. Arbel has a wide view on international business.
“I am honored to join the Board of Directors at IMCC,” said Mr. Arbel. “I look forward to leveraging my experience in banking and finance, providing guidance as IMCC continues to establish itself as the go-to brand in the cannabis world. I look forward to contributing to the company’s growth.”
Arbel holds a BA and MBA from Tel Aviv University.
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has focused its resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and United States securities laws (collectively, “forward-looking statements“). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to: the stated benefits Mr. Arbel’s appointment, including the further strengthening the Company’s commitment to driving growth in the German market while focusing on sustainable profitability; and Mr. Arbel’s international experience and track record in banking and finance will be invaluable to the Company.
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the Company’s ability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance becoming invaluable to the Company.
The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and its subsidiaries (collectively, the “Group“) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt; risks surrounding war, conflict and civil unrest in Eastern Europe and the Middle East, including the impact of the Israel-Hamas war on the Company, its operations and the medical cannabis industry in Israel; risks associated with the Company focusing on the Israel and Germany markets; the inability of the Company to achieve sustainable profitability and/or increase shareholder value; the inability of the Company to actively manage costs and/or improve margins; the inability of the company to grow and/or maintain sales; the inability of the Company to meet its goals and/or strategic plans; the inability of the Company to reduce costs and/or maintain revenues; the Company’s inability to take advantage of the legalization of medicinal cannabis in Germany; and the Company’s inability to realize upon the stated benefits Mr. Arbel’s appointment; and Mr. Arbel’s international experience and track record in banking and finance not becoming valuable to the Company.
Please see the other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual report dated March 28, 2024, which is available on the Company’s issuer profile on SEDAR+ at www.sedarplus.ca and Edgar at www.sec.gov/edgar. Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward looking information is made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Company Contact:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, CEO
IM Cannabis Corp.
[email protected]
Logo: https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/im-cannabis-announces-appointment-of-shmulik-arbel-to-board-of-directors-302244961.html
Cannabis
Europe Medical Cannabis Market Forecast 2024-2032: Tilray, Aurora Cannabis, and GW Pharmaceuticals Dominate the Market Landscape
Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) — The “Europe Medical Cannabis Oil Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2024-2032.” report has been added to ResearchAndMarkets.com’s offering.
The Europe Medical Cannabis Oil market is poised for significant growth, projected to escalate from US$ 0.91 billion in 2023 to US$ 2.40 billion by 2032, advancing at a CAGR of 12.08%. In this comprehensive research report, the market is analyzed by:
- Derivatives;
- Source;
- Application;
- Route of Administration;
- End-user;
- Distribution Channel; and
- Country.
Market Highlights Identified in the Report
- Progressive legalization across Europe is creating a favorable regulatory environment, enhancing market expansion for medical cannabis oil products.
- Germany leads the market with a robust infrastructure and supportive regulations, while other countries like the UK, Italy, and Spain show significant growth potential based on evolving regulatory landscapes and market dynamics.
- Key players such as Tilray, Aurora Cannabis Inc., and GW Pharmaceuticals dominate the market, emphasizing research, strategic partnerships, and innovation to maintain competitive edge amidst evolving industry dynamics.
The medical cannabis oil market has experienced substantial growth as legalization and acceptance of cannabis-based treatments expand globally. Cannabis oil, derived from the cannabis plant through extraction methods, contains cannabinoids such as THC and CBD, known for their therapeutic properties. Increasing recognition of cannabis oil’s potential in alleviating symptoms of various medical conditions, including chronic pain, epilepsy, and anxiety disorders, has driven its adoption in medical settings.
Governments in several countries are progressively legalizing medical cannabis, creating a conducive regulatory environment for market expansion. Additionally, growing consumer awareness about alternative and natural therapies has fueled the demand for cannabis oil products. The market is characterized by diverse product offerings, including full-spectrum and CBD-isolate oils, catering to different therapeutic needs and preferences.
Despite regulatory challenges and stigma associated with cannabis, the medical cannabis oil market continues to evolve, driven by ongoing research, favorable legislative changes, and shifting attitudes toward cannabis-based therapies in healthcare.
Regional Insights
Germany is likely to maintain its leadership position in the European medical cannabis oil market due to its established infrastructure, supportive regulations, and strong healthcare system. Germany legalized medical cannabis in 2017, giving the market a head start compared to many other European countries. This established infrastructure and experience position Germany as a leader in the field. As awareness and acceptance of medical cannabis increase, the number of patients seeking treatment in Germany is steadily rising. This fuels market growth and incentivizes further investment in research and development.
Germany’s regulatory framework for medical cannabis is considered relatively patient-friendly compared to some other European countries. This facilitates access for patients with qualifying conditions. The UK legalized medical cannabis in 2018 and is experiencing an increase in patient access programs. This, coupled with ongoing research, could lead to significant market growth. Italy legalized medical cannabis in 2006 but has faced challenges with availability. As regulations become more streamlined and patient access expands, the Italian market holds significant growth potential. Spain has a well-established medical cannabis industry with a focus on domestic production. As regulations evolve and export opportunities increase, the Spanish market could see a boost.
Competitive Landscape
The Medical Cannabis Oil market is characterized by a vigorous competitive landscape, with prominent entities like Tilray, Aurora Cannabis Inc., GW Pharmaceuticals, Almiral, Bedrocan, and others at the forefront, collectively accounting for approximately 41 % of the overall market share. This competitive milieu is fueled by their intensive efforts in research and development as well as strategic partnerships and collaborations, underscoring their commitment to solidifying market presence and diversifying their offerings.
The primary competitive factors include pricing, product caliber, and technological innovation. As the Medical Cannabis Oil industry continues to expand, the competitive fervor among these key players is anticipated to intensify. The impetus for ongoing innovation and alignment with evolving customer preferences and stringent regulations is high. The industry’s fluidity anticipates an uptick in novel innovations and strategic growth tactics from these leading corporations, which in turn propels the sector’s comprehensive growth and transformation.
Key Topics Covered
Chapter 1. Research Framework
Chapter 2. Research Methodology
Chapter 3. Executive Summary: Europe Medical Cannabis Oil Market
Chapter 4. Europe Medical Cannabis Oil Market Overview
Chapter 5. Europe Medical Cannabis Oil Market Analysis, by Derivatives
Chapter 6. Europe Medical Cannabis Oil Market Analysis, by Source
Chapter 7. Europe Medical Cannabis Oil Market Analysis, by Application
Chapter 8. Europe Medical Cannabis Oil Market Analysis, by Route of Administration
Chapter 9. Europe Medical Cannabis Oil Market Analysis, by End-user
Chapter 10. Europe Medical Cannabis Oil Market Analysis, by Distribution Channel
Chapter 11. Europe Medical Cannabis Oil Market Analysis, by Country
Chapter 12. The UK Medical Cannabis Oil Market Analysis
Chapter 13. Germany Medical Cannabis Oil Market Analysis
Chapter 14. The Netherlands Medical Cannabis Oil Market Analysis
Chapter 15. Italy Medical Cannabis Oil Market Analysis
Chapter 16. Spain Medical Cannabis Oil Market Analysis
Chapter 17. Poland Medical Cannabis Oil Market Analysis
Chapter 18. Rest of Europe Medical Cannabis Oil Market Analysis
Chapter 19. Company Profiles (Company Overview, Financial Matrix, Key Product Landscape, Key Personnel, Key Competitors, Contact Address, and Business Strategy Outlook)
A selection of companies mentioned in this report includes, but is not limited to:
- Aurora Cannabis Inc.
- Bedrocan
- Biocann
- BIOTA Biosciences LLC
- Cannamedical
- Mary Jane CBD
- Sanity Group GmbH
- Tilray
- Valcon Medical
For more information about this report visit https://www.researchandmarkets.com/r/dh7q46
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
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