Nova Cannabis Inc. (the “Company” or “Nova“) (TSX: NOVC) today released its audited annual consolidated financial statements (the “annual financial statements“) and management’s discussion and analysis (“MD&A“) for the year ended December 31, 2021.
“We launched Value Buds in 2021 to provide cannabis consumers in Canada with a better option, and the traction of our store format has been a resounding success. Once again, we delivered strong sequential and year over year sales growth for the quarter and we now have 78 stores open across Alberta, Saskatchewan and Ontario,” said Darren Karasiuk, CEO of Nova. “Following Sundial’s pending acquisition of our majority shareholder, Alcanna, we will gain a cannabis focused partner that is committed to supporting our value-based model with the infrastructure and financial resources to drive the expansion of our disruptive strategy at a much larger scale.”
FOURTH QUARTER 2021 FINANCIAL AND OPERATING HIGHLIGHTS
- Sales of $47.6 million, a 175.9% increase from the fourth quarter of 2020, and a 23.2% increase from the third quarter of 2021
- Gross profit of $8.4 million, or 17.7% of sales, a 58.0% increase from the fourth quarter of 2020 and a 29.0% increase from the third quarter of 2021
- Nova now has seventy-eight (78) stores open, an increase of forty-four (44) stores since December 31, 2020, and all legacy Nova branded stores have been converted to Value Buds
FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS
- Sales of $134.4 million, a 112.2% increase from $63.3 million in 2020
- Gross profit of $24.9 million, or 18.5% of sales, a 19.7% increase from $20.8 million in 2020
- Cash increased by $9.3 million to $10.5 million as at December 31, 2021
SUNDIAL ACQUISITION OF ALCANNA
On October 7, 2021, Sundial Growers Inc. (“Sundial“) (NASDAQ: SNDL) entered into an arrangement agreement (the “Arrangement Agreement“) to acquire all of the issued and outstanding common shares of Alcanna Inc. (“Alcanna“), Nova’s majority shareholder (the “Sundial-Alcanna Transaction“). On February 25, 2022, Alcanna and Sundial mutually agreed to extend the outside date for closing the Sundial-Alcanna Transaction to March 30, 2022 in accordance with terms of the Arrangement Agreement to complete the required closing matters contemplated by the Arrangement Agreement.
FOURTH QUARTER AND YEAR END 2021 FINANCIAL RESULTS
For further information, refer to the Company’s annual financial statements and MD&A for the year ended December 31, 2021, which are available from the Company’s profile on SEDAR, at www.sedar.com, or on the Company’s website at www.novacannabis.ca.