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Mene Inc. Reports Financial Results for First Quarter 2019

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TORONTO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24MENE&src=ctag” target=”_blank”gt;$MENElt;/agt; lt;a href=”https://twitter.com/hashtag/earnings?src=hash” target=”_blank”gt;#earningslt;/agt;–Menē Inc. (TSX-V:MENE) (US:MENEF) (“Menē” or the “Company”),
an online 24 karat investment jewelry brand, today announced financial
results for the first quarter ended March 31, 2019 (“Q1 2019”).
All amounts are expressed in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS:

  • IFRS Revenue of $2.7 million, a $1.7 million (163%) increase
    year-over-year (“YoY”). Non-IFRS Adjusted Revenue of $2.9
    million, an increase of 151% YoY.
  • Gross Profit of $0.7 million, an increase of $0.5 million (298%) YoY.
  • Gross Margin expanded by 900 basis points, from 16% in Q1 2018 to 25%
    in Q1 2019.
  • Generated $0.3 million in Free Cash Flow in Q1 2019, the net of
    operating cash flow less capital expenditures.
  • Reduced Net Loss by 26% to $1.1 million from $1.5 million in Q1 2018.
    Non-IFRS Adjusted Loss decreased by 54% YoY to $0.6 million.
  • Sold 8,182 units of jewelry through 7,354 customer orders, an increase
    of 7,242 units (770%) and 6,469 orders (731%) respectively compared to
    Q1 2018.
  • Gold Weight Sold increased by 17 kilograms (115%) and Platinum Weight
    Sold increased by 9.6 kilograms (685%) from Q1 2018.
  • Strong Tangible Common Equity of $17.8 million, with $17.5 million in
    cash and cash equivalents and $16.2 million in short-term investments
    as of March 31, 2019. Tangible Common Equity increased by 58% YoY,
    demonstrating the Company’s ability to access cash to grow the
    business and its high-margin and low fixed-cost business model.

OPERATIONAL HIGHLIGHTS:

  • Introduced 99 new product designs during the quarter.
  • Launched “Menē x”, a new product category of limited-edition jewelry
    collections designed in collaboration with select creators, artists
    and tastemakers. Unveiled first collaboration with world-renowned
    fashion photographers Inez van Lamsweerde and Vinoodh Matadin (“Inez &
    Vinoodh”).
  • Raised $20 million in a Debt Financing Round with a strategic lender.
       

IFRS Consolidated Income Statement Data
& Key
Performance Indicators (KPIs)
5

FY 2019   FY 2018  

July 11, 2017
to December
31, 2017 6

    Q1   Q4   Q3   Q2   Q1  
Revenue (CAD)     2,733,596   3,510,374   1,985,711   1,392,867   1,038,947   63,909
Gross profit (CAD)     678,814   983,840   208,408   229,461   170,486   12,143
Gross margin (%)     25%   28%   10%   16%   16%   19%
Total comprehensive loss     (1,166,288)   (2,681,362)   (1,691,124)   (919,106)   (1,348,026)   (1,702,048)
Non-IFRS Adjusted Revenue (CAD) 1     2,914,297   3,948,113   2,346,622   1,891,608   1,162,777   67,114
Non-IFRS Adjusted Gross Profit (CAD) 2     723,686   1,106,524   246,287   311,623   190,806   12,752
Non-IFRS Adjusted Loss 3     (577,218)   (469,487)   (1,136,242)   (758,895)   (1,251,091)   (1,639,950)
Total Shareholders’ Equity (CAD)     17,833,109   18,516,087   10,077,520   11,251,166   11,878,195   13,192,937
Inventory balance (kg of gold) 4     222   244   135   131   90   54
Customer orders     4,437   6,729   3,994   2,389   951   74
Units of jewelry sold     8,182   9,111   6,168   2,920   941   80
Jewelry weight sold (total kg)     43   51   35   23   16   1
     

Notes:

(1) The Company adjusts its revenue by adding back the value of jewelry
that the Company bought back from customers, or was returned by
customers, and discounts given to customers. These adjustments are made
to assess the gross revenue before deducting these items from revenue
per IFRS. See Non-IFRS Measures for a full definition.

(2) The Company adjusts its gross profit by adjusting for Non-IFRS
revenue and the attributable weighted average cost of sales for the
value of jewelry that the Company bought back from customers, or was
returned by customers, and discounts given to customers. See Non-IFRS
Measures for a full definition.

(3) The Company adjusts its total comprehensive loss by adjusting for
Non-IFRS Adjusted Gross Profit, and removing the impact of non-cash
expenses, consisting of depreciation and amortization, stock based
compensation, and a one-time listing expense, the fair value of
5,984,750 shares issued for the amalgamation with Amador Gold Corp.’s
subsidiary in Q4 2018. See Non-IFRS Measures for a full definition.

(4) Inventory balances in kilograms of gold are calculated by taking the
total Canadian Dollar (CAD) inventory value at each quarter-end date,
and dividing the value by the CAD gold spot price per gram.

(5) The period July 11, 2017 to December 31, 2017 and the fiscal year
ended December 31, 2018 are audited figures. The period Q1 to Q3 2018
have been reviewed by the same independent audit firm, KPMG. Q1 2019 has
not been reviewed.

(6) The Company began generating sales to an invite-only group in
October 2017. The Company began selling to the general public in January
2018.

Statement from Founder & CEO Roy Sebag:

Menē continues to show compelling organic growth and sales momentum. In
Q1, we generated over $2.7 million of sales, $0.7 million in gross
margin, and $0.3 million in IFRS Free Cash Flow. It is important to
remind our shareholders that this business has only been in operation
for 15 months at the quarter-end date. Following the completion of our
debt-note funding and a repayment of a portion of the historic loans
from Goldmoney Inc., our balance sheet is strong and well-positioned for
the next few years. We remain focused on building our brand equity
within the fashion, art, and jewelry cultural segments, seeing that with
each passing day, our brand is being embraced by popular thought leaders
and tastemakers. As of today’s date, we have over 30,000 registered
customers from over 20 countries around the world. Inventory levels
remain strong and are being built up in anticipation of a strong
2019-2020 season (October-February). I am very proud of the hard work
and dedication shown by our team and the disciplined way in which we are
building this company and its business model. My personal focus this
quarter has been in setting the infrastructure for several C-level
executive hires in Paris and Toronto which will help the company scale
its operations and position Menē for sustained growth in the years to
come. I look forward to updating our shareholders on these developments
as they formally materialize.

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company
believes that these measures provide investors with useful supplemental
information about the financial performance of its business, enable
comparison of financial results between periods where certain items may
vary independent of business performance, and allow for greater
transparency with respect to key metrics used by management in operating
its business. Although management believes these financial measures are
important in evaluating the Company’s performance, they are not intended
to be considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with IFRS.
These non-IFRS financial measures do not have any standardized meaning
and may not be comparable with similar measures used by other companies.
For certain non-IFRS financial measures, there are no directly
comparable amounts under IFRS. These non-IFRS financial measures should
not be viewed as alternatives to measures of financial performance
determined in accordance with IFRS. Moreover, presentation of certain of
these measures is provided for year-over-year comparison purposes, and
investors should be cautioned that the effect of the adjustments thereto
provided herein have an actual effect on the Company’s operating results.

Non-IFRS Adjusted Revenue1 is a non-IFRS measure. The Company
adjusts its revenue by adding back the value of jewelry that the Company
bought back from, or was returned by customers, and discounts given to
customers. These adjustments are made to assess the gross revenue before
deducting these items per IFRS revenue.

Non-IFRS Adjusted Gross Profit2 is a non-IFRS measure. The
Company adjusts its gross profit by adjusting for the additional revenue
and associated cost of sales added back for the value of jewelry that
the Company bought back from, or was returned by customers, and
discounts given to customers.

Non-IFRS Adjusted Loss3 is a non-IFRS measure. The Company
adjusts its total comprehensive loss by adjusting for Non-IFRS Adjusted
Gross Profit, and removing the impact of non-cash expenses, consisting
of depreciation and amortization, stock based compensation, and a
one-time listing expense, the fair value of 5,984,750 shares issued for
the amalgamation with Amador Gold Corp.’s subsidiary in Q4 2018.

For a full definition of non-IFRS financial measures used herein to
their nearest IFRS equivalents, please see the section entitled
“Non-IFRS Financial Measures” in the Company’s MD&A for the three months
ended March 31, 2019.

About Menē Inc.

Menē crafts pure 24 karat gold and platinum jewelry that is
transparently sold by gram weight. Through mene.com, customers may buy
jewelry, monitor the value of their collection over time, and sell or
exchange their pieces by gram weight at prevailing market prices. Menē
was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to
restore the relationship between jewelry and savings. Menē empowers
consumers by marrying innovative technology, timeless design, and pure
precious metals to create pieces which endure as a store of value.

For more information about Menē, visit mene.com.

Forward-Looking Statements

This news release contains or refers to certain forward-looking
information. Forward-looking information can often be identified by
forward-looking words such as “anticipate”, “believe”, “expect”, “plan”,
“intend”, “estimate”, “may”, “potential” and “will” or similar words
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future events or
performance. All information other than information regarding historical
fact, which addresses activities, events or developments that the Menē
Inc. (the “Company”) believes, expects or anticipates will or may occur
in the future, is forward looking information. Forward-looking
information does not constitute historical fact but reflects the current
expectations the Company regarding future results or events based on
information that is currently available. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts,
projections and other forward-looking information will not occur. Such
forward-looking information in this release speak only as of the date
hereof.

Contacts

Media and Investor Relations Inquiries:
Renee Wei
Head
of Investor Relations
+1 647 494 0296
ir@mene.com

Robert Lee
Chief Financial Officer
robert@mene.com

Cannabis

Oppenheimer & Co. To Host 19th Annual Consumer Growth and E-Commerce Conference

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Oppenheimer & Co. Inc. (“Oppenheimer”) – a leading investment bank, wealth manager, and a subsidiary of Oppenheimer Holdings (NYSE: OPY) – will host its 19th Annual Consumer Growth and E-Commerce Conference on June 18-19 in Boston, MA. This year’s event features companies from prominent consumer brands such as Autozone, Domino’s Pizza, Express, Home Depot, Lowe’s, Six Flags Theme Parks, Tiffany & Company, Ulta, Walmart, Weight Watchers, and Yum Brands.

Of particular note, Oppenheimer is pleased to host nine of the market-leading companies involved with emerging trends in the Cannabis space this year. The event will also feature seven panel discussions, moderated by Oppenheimer Consumer Research Analysts, addressing emerging and disruptive trends in the consumer marketplace as follows:

  • Evolving Role of Technology in the Consumer Sector with Cooler Screens and Lindsay Goldberg LLC, moderated by Brian Nagel
  • A Discussion with Emerging Restaurant Brands with Aurify and B. Good, moderated by Brian Bittner
  • A Discussion on the Evolving US Food & Beverage Landscape with Lifeway, New Age Beverage, and United Natural Foods, moderated by Rupesh Parikh
  • Next Gen Brands Re-Shaping Landscape for Women’s Fashion with CARAA and Rothy’s, moderated by Brian Nagel
  • Exciting New Brands Shaking Up Home Products Space with Burkelman, LoveSac and Resident/Nectar, moderated by Brian Nagel
  • A Discussion on the Emerging CBD Landscape with Curaleaf and CV Sciences, moderated by Rupesh Parikh
  • Leveraging the Power of Digital to Connect with Consumers with Eight and FlexShopper, moderated by Brian Nagel

The conference features Oppenheimer’s Consumer Senior Research Analysts:

  • Brian Bittner, Managing Director Senior Analyst covering Restaurants
  • Brian Nagel, Managing Director and Senior Analyst covering Retail and E-Commerce
  • Rupesh Parikh, Managing Director and Senior Analyst covering Food, Grocery and Consumer Products
  • Ian Zaffino, Managing Director and Senior Analyst covering event-driven Special Situations

“Long-established business models are being upended by disruptive brands and technology, affecting consumer preferences and buying behaviors throughout the consumer industry. This year’s event aims to showcase the mix of market-leading and emerging companies driving and navigating these changes,” said Erica L. Moffett, Managing Director and Associate Director of Research at Oppenheimer. “From effortless payment methods to accelerated delivery times and customized products, consumers want a seamless experience. In order to succeed, companies must stay current on the evolving consumer and we are pleased to host a conference to explore this new landscape.”

Oppenheimer’s next conference will be the Montauk Emerging Life Sciences Summit, which will be held on June 26-28in Montauk, NY. The 22nd Annual Technology, Internet & Communications Conference will follow on August 6-7 in Boston, MA, followed by the Midwest Corporate Access Day in Chicago on August 15.

Oppenheimer & Co. Inc.
Oppenheimer & Co. Inc. (Oppenheimer), a principal subsidiary of Oppenheimer Holdings Inc. (OPY on the New York Stock Exchange), and its affiliates provide a full range of wealth management, securities brokerage and investment banking services to high-net-worth individuals, families, corporate executives, local governments, businesses and institutions.

SOURCE Oppenheimer & Co. Inc.

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Cannabis

iCAN: Israel-Cannabis CEO and Founder Saul Kaye to Participate at the World Cannabis Congress in Saint John, New Brunswick

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iCAN: Israel Cannabis Founder and CEO Saul Kaye will participate at the World Cannabis Conference being held in Saint John, New Brunswick, Canada from June 16-18, 2019.

Kaye, a leader in the global cannabis ecosystem will moderate a session entitled, “Innovative Methodologies and Emerging Topics in Global Cannabis Research.”  Panelists are Dr. Suzanne Sisley MD President and Principal Investigator, Scottsdale Research Institute and, Dr. Jerry King, R&D Consultant, CFS.  The session will take place at the Saint John Trade & Convention Centre on June 18.

The World Cannabis Congress (WCC) is an exclusive, invite-only event for international cannabis leaders, influencers and trend setters. The event will have hundreds of attendees from around the world from business, government and medicine.

In addition to his leadership of iCAN: Israel Cannabis, Kaye is an industry advisor to the Medical Cannabis Caucus of the Israeli Parliament, as well as an advisor to the Ministries of Economy and Health in Israel. He is a licensed pharmacist and a successful entrepreneur with both retail and e-commerce experience. Saul has founded multiple companies spanning six countries across the US, EuropeIsrael and Australia.

Canada has truly been a global trailblazer in the cannabis industry.  Canadian cannabis companies and its stock market are influential and forward looking and we in Israel, the R&D capital of cannabis, collaborate with our Canadian friends on many different levels.  I look forward to participating at the WCC as the medicine and business of cannabis develops at breathtaking speed both in Israel and beyond,” said Kaye.

 

SOURCE iCAN: Israel Cannabis

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Loyalist College to launch Canada’s first Technology Access Centre for natural products and cannabis

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Loyalist College is the recipient of a $1,750,000 Natural Sciences and Engineering Research Council of Canada (NSERC) College and Community Innovation (CCI) Program grant over five years to launch Canada’s first Technology Access Centre (TAC) for natural products and cannabis. In addition, Loyalist received $1Mthrough the Canada Foundation for Innovation’s (CFI) College-Industry Innovation Fund (CIIF) to add specialized equipment to the TAC.

Loyalist was one of 90 recipients at colleges, cégeps and polytechnics across the country to receive part of the $73M in funding, announced today by the Honourable Kirsty Duncan, Minister of Science and Sport, at Georgian College in Barrie, Ontario. Through the CCI Program and the CIIF, this investment will help post-secondary institutions partner directly with local employers to facilitate commercialization and transform the results of research and development into new technologies to help businesses expand and grow.

The rapid growth of Canada’s cannabis, hops and natural products sectors positions Loyalist’s Applied Research Centre for Natural Products and Medical Cannabis (ARC) as a national innovation hub for small- to medium-sized enterprises. As a TAC, Loyalist will build on the ARC’s 15 years of natural product extraction expertise and analysis-based applied research. In transitioning to a TAC, Loyalist’s ARC will significantly increase the College’s capacity to lead applied research of commercially relevant natural products and cannabis, and to support innovation by enhancing industries’ access to sector-relevant expertise and technology.

The TAC initiative will cultivate an environment for College-industry partnerships to thrive while providing students with unparalleled opportunities for work-integrated learning; investigating extraction, isolation, and formulation; and product development. In partnership with the Quinte Economic Development Commission (QEDC), Loyalist will support the Bay of Quinte’s burgeoning natural products and cannabis sectors to generate regional socioeconomic benefits, and to provide opportunities for a new generation of innovators. Loyalist will also offer companies across Canada a supportive, community-oriented platform from which to enhance their productivity, expand their reach and augment their competitiveness in the global market.

Quotes

“We are very grateful for NSERC’s continued support and proud to be Canada’s first TAC for natural products and cannabis. Loyalist currently has more than 25 companies interested in applied research, and as our ARC transitions into a TAC, we will be able to meet their requirements while significantly extending our network to help more companies to innovate. Our Biosciences and Cannabis Applied Science students will have the advantage of being involved in ground-breaking research that propels Canada forward as the world leader in cannabis and natural product developments.” – Dr. Ann Marie Vaughan, Loyalist College President & CEO

“It’s great to see this NSERC and CFI funding come through for Loyalist College’s launch of Canada’s first TAC for research in natural products and cannabis. Being able to conduct research in a state-of-the-art facility means that students working in the College’s ARC will be able to build up their expertise in product analysis; which can then be applied directly to commercial development. This is just the beginning of seeing a new series of natural products being designed, assessed, made and delivered from our region.” – Neil R. Ellis, Member of Parliament for Bay of Quinte

“I am so proud to see the innovation that is driving research and economic development in our rural community through Loyalist College’s ARC. Innovation is key to Rural Sustainability and this investment will ensure that we are training the next generation in the latest technological advances. I congratulate them on their NSERC and CFI grant, and wish them all the best of success.” – Mike Bossio, Member of Parliament for Hastings—Lennox and Addington

“The Quinte Economic Development Commission is proud to be a supporting partner with Loyalist College on this important initiative that is aligned with economic development opportunities and priorities in the region. The TAC will support industry research and innovation for companies in key industry sectors as well as helping students develop in-demand skills and experience. Congratulations to the team at Loyalist on launching this important project.” – Chris King, Chief Executive Officer, Quinte Economic Development Commission

 

SOURCE Loyalist College

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