LEEF Brands Reports Strong Second Quarter 2023 Financial Results
August 22nd, 2023
News, Top News
VANCOUVER, British Columbia, Aug. 22, 2023 (GLOBE NEWSWIRE) — LEEF Brands, Inc. (“LEEF” or the “Company”) (CSE: LEEF, OTC: LEEEF) a premier vertical cannabis operator, is pleased to report its financial results for the three and six months ended June 30, 2023. All currency references used herein are in United States dollars unless otherwise noted.
- Net sales of $9.3M for the three months ended June 30, 2023 and $19.0M for the six months ended June 30, 2023, representing an increase in year over year revenue of 14.60% and 22.5% respectively.
- Gross Profit of $2.9M for the three months ended June 30, 2023 and $6.4M for the six months ended June 30, 2023, representing an increase in year over year gross profit of 8.2% and 11.6% respectively.
- Gross Margin of 31.2% for the three months ended June 30, 2023 and 33.1% for the six months ended June 30, 2023.
- Adjusted EBITDA of $293.3K for the three months ended June 30, 2023 and $1.0M for the six months ended June 30, 2023.
“Despite the continued difficult environment in the California cannabis industry, I am extremely pleased to report strong financial performance for the first six months of 2023. Our continued success is a result of the implementation of our corporate strategy that is focused on our core competencies, our team’s relentless dedication to achieving our corporate objectives and an unwavering commitment to our customers,” stated Micah Anderson, CEO of LEEF. “As we continue to navigate the challenges of the market, we remain focused on advancing our strategic priorities in an effort to continue to drive long-term shareholder value. As part of this, we are extremely excited to be progressing towards closing the $7.0 million financing related to the sale of the Company’s 60% interest in its cultivation and real estate assets in Santa Barbara, California, of which the proceeds will be principally used to develop one of the largest biomass cultivation sites in the state. By bringing supply of biomass material in-house, LEEF Labs can focus its efforts on its goal to produce the best and most consistent concentrates at scale. We expect this initiative will enable the Company to enhance efficiencies across the entire manufacturing process, foster stronger relationships with its client-base by providing exclusive genetics, higher-yielding strains and unique terpene profiles, and will also support LEEF Labs customers’ growth with a predictable and consistent supply of the highest quality input material.”
CFO Kevin Wilson added, “We are very pleased to report continued revenue growth, high gross margins and most importantly, positive adjusted EBITDA. Our financial performance is the result of our continued focus on operational excellence and substantial cost cutting measures. Overall, the Company has increased revenues by 23% year over year and we remained laser focused on continuing to generate positive cashflow from operations, which we have now achieved for two straight quarters. In the course of our regular balance sheet review, we have identified the need to record a non-cash goodwill impairment of $17.4 million pertaining to the acquisition of LEEF Holdings Inc. during the quarter. We believe the impairment is reflective of the current challenges in the California cannabis market that we continue to navigate.”
Q2 2023 Financial Results Discussion:
Subsequent Events to the Three Months Ended June 30, 2023:
The Company is pleased to announce the appointment of Andrew Glashow to the board of directors as an independent director, effective August 4, 2023. Mr. Glashow is a graduate of the University of New Hampshire’s Whittemore School of Business and Economics and has 25 years of experience in capital markets and is seasoned in all phases of business start-up, growth, and development. Mr. Glashow is the Chief Executive Officer of CLS Holdings USA, Inc., a diversified cannabis company in Nevada that consists of two operating businesses, Oasis Cannabis Dispensary and City Trees. Oasis Cannabis Dispensary is a retail cannabis dispensary in Las Vegas, Nevada. City Trees is a cannabis production and manufacturing wholesaler located in North Las Vegas.
The Company is also pleased to announce the appointment of Emily Heitman to the role of Chief Revenue Officer, effective August 4, 2023. Miss. Heitman has been with the organization since inception and has until recently been the Chief Operating Officer for the Company.
The Company also announces the issuance of 2,186,602 common shares at a price per share equal to $0.0666 in respect of the acquisition of The Leaf at 73740 LLC, a premium California retailer located in the heart of Palm Desert, California, previously announced on September 19, 2022. The Company expects to issue an additional 18,580,301 common shares in connection with the acquisition of The Leaf at 73740, LLC as per the press release dated January 12, 2023.
Unaudited Q2 2023 Financial and Operational Metrics
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7701d31e-d421-49e1-8728-9206dc92c406
NON-IFRS FINANCIAL PERFORMANCE MEASURES
The Company has included certain terms or performance measures that are not defined under IFRS in this document, including EBITDA and adjusted EBITDA. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company’s financial statements
About LEEF Brands Inc. (formerly, Icanic Brands Company Inc.)
LEEF Brands Inc. is a leading California based extraction and manufacturing cannabis company. LEEF is owned and managed by some of the best legacy operators in the industry and is one of California’s largest and most sophisticated vertical cannabis companies. The Company’s platform consists of an integrated supply chain, state of the art manufacturing, and a robust bulk concentrate portfolio that powers some of the largest brands in California. For more information, please visit the company’s website at www.LeefBrands.com.
LEEF Brands Inc.
Per: “Kevin Wilson”
Chief Financial Officer
SOURCE LEEF Brands, Inc.
For further information: LEEF Brands, Inc., Micah Anderson, CEO, or Kevin Wilson, CFO, 707-703-4111, firstname.lastname@example.org
Forward Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”) including but not limited to: (i) the continued success of the Company’s corporate strategy and proposed initiatives; (ii) the closing of the Company’s financing related to the sale of its 60% interest in its cultivation and real estate assets in Santa Barbara, California; (iii) the proposed used of proceeds from the completion of the proposed financing; (iv) the Company’s ability to enhance efficiencies across the entire manufacturing process, foster stronger relationships with its client-base and produce a predictable and consistent supply of input material; and (v) its ability to continue to generate positive cashflow from operations. Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company’s Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.