Lifeist Wellness Reports Continuing Improved Trends in Q3 2021

Quarterly Monetary Metrics

Depicts quarterly monetary metrics

— Enchancment in Key Metrics: Income Progress, Adj. Gross Revenue, Working Cashflow
— Execution in Hashish as Firm Pursues Rising Nutraceuticals Alternative

TORONTO, Oct. 29, 2021 (GLOBE NEWSWIRE) — Lifeist Wellness Inc. (“Lifeist” or the “Firm”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF), a wellness firm that leverages developments in science and expertise to allow you to search out your path to wellness, right now reported its monetary outcomes for the three and 9 months ended August 31, 2021. All monetary figures are in Canadian {dollars} until in any other case indicated.

Third Quarter 2021 Monetary Highlights

• Gross income elevated 12% year-over-year to $7.1 million, led by hashish development of 34%.

• Gross revenue and margin greater than doubled year-over-year to $0.9 million and 15% of Web income (23% earlier than stock adjustment), the fourth consecutive quarterly enchancment.

• EBITDA loss narrowed to $5.4 million in comparison with $7.3 million in Q3 2020 and $5.9 million in Q2 2021, even with incremental investments into rising companies together with nutraceuticals.

• Web money utilized in working actions decreased from $5.7 million in Q2 2021 to $4.9 million in Q3 2021.

• Stock administration continues to enhance with diminished turnover days and decrease holdings of stock.

• Working capital place of $19.5 million at quarter finish stays sturdy.

“Our improved third quarter outcomes mirror ongoing optimistic tendencies: larger income, decrease prices, and higher money circulate,” stated Meni Morim, CEO of Lifeist. “We’re seeing the early payoff from our concentrate on the place we are able to ship extra worthwhile development, function extra effectively, and optimize working capital inside our present portfolio of companies whereas we make investments sooner or later. We’re urgent ahead with our plans to develop nutraceuticals merchandise with a brand new enterprise unit launching this quarter, enabling Lifeist to transition to sustainable profitability. The improved efficiency in our hashish enterprise whereas we make investments on this rising alternative reinforces our confidence in our technique and we anticipate continued top-line development and enhancements in profitability as we navigate via this transformation. General, there was a major quantity of labor finished throughout the Firm laying the foundations for development as we proceed our firm’s evolution to wellness.”

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Added Mr. Morim, “Particularly, the monetary turnaround is being led by our hashish subsidiary, CannMart, Inc., which is experiencing sturdy demand for its portfolio of merchandise from customers, retailers and provincial wholesalers throughout Canada as evidenced by the 34% development in hashish income within the quarter. What makes CannMart distinctive is its capacity to deliver manufacturers to market rapidly, whether or not or not it’s by way of the rising variety of grasp distribution agreements that we’re signing the place we act because the intermediary, or by way of the growth of our product portfolio with the launch of our limited-edition SKUs made at our subsidiary CannMart Labs’s state-of-the-art BHO extraction facility.”

Operational Highlights

• CannMart Inc. continues to enter into partnerships with third events to be their wholesale and logistics companion as a way to benefit from the development the place Canadian licensed producers (LPs) and producers need to outsource elements of their operations that aren’t core. Through the third quarter, CannMart Inc. signed Grasp Distribution Agreements with a number of corporations together with with Fast Dose Therapeutics Corp. (“RDT”) (CSE: DOSE) to solely distribute RDT’s modern RDT branded merchandise throughout Canada.

• CannMart Inc. acquired its first buy orders from the provinces of Manitoba, and Saskatchewan for its 2.0 consumer-focused leisure home model “Roilty” concentrates.

• As a part of its concentrate on the broader wellness house, the Firm modified its company title from Namaste Applied sciences Inc. to Lifeist Wellness Inc. efficient September 9, 2021, and adjusted its inventory ticker image on the TSXV to its present image “LFST”.

• Lifeist continues to search for methods to function extra effectively, together with subleasing its former Toronto workplace headquarters which is anticipated to generate annual run fee financial savings of roughly $138,000 till expiry of its lease in October 2024, in addition to consolidating headcount, software program and advertising prices throughout divisions as a way to cut back prices and reallocate assets extra effectively throughout the Firm, and implementing stock management measures on the hashish enterprise to cut back carrying prices.

Monetary Abstract of Q3 2021 and Comparative Durations

Gross income elevated 12% to $7.1 million in Q3 2021, as in comparison with $6.3 million in Q3 2020. This development was pushed by the Firm’s hashish enterprise which elevated 34% as a result of elevated quantity of orders from provincial clients, enhanced product choice and a brand new dropship income stream added in Q3 2021. As well as, SaaS income elevated 9% as in comparison with Q3 2020.

Adjusted gross margin, earlier than stock write-down, was 23% of Web income in Q3 2021 in comparison with 10% in Q3 2020 and 14% in Q2 2021. The 1,300-basis level enchancment year-over-year was as a result of improved manufacturing efficiencies throughout all segments.

EBITDA loss narrowed to $5.4 million in Q3 2021 in comparison with $7.3 million in Q3 2020, as a result of improved efficiency throughout most enterprise items. The diminished EBITDA loss was internet of roughly $1 million of investments in rising companies together with CannMart Labs and nutraceuticals.

Web loss in Q3 2021 was $6.1 million, largely impacted by elevated Salaries and Promoting and Advertising and marketing prices, on account of a strategic funding within the development of core enterprise segments in addition to an upfront funding within the nutraceutical section.

Stability Sheet and Money Movement

Money and money equivalents have been $17.9 million as of August 31, 2021, in comparison with $23.0 million as of Could 31, 2021, which is enough to fund deliberate development initiatives.

Demonstrating continued improved stock administration practices, inventories decreased to $4.9 million in comparison with $5.2 million in Q2 2021 and $6.0 million in Q1 2021.

Web money utilized in operations was $4.9 million for the quarter. That is the third consecutive quarter during which the Firm demonstrated EBITDA loss enhancements.

A photograph accompanying this announcement is offered at https://www.globenewswire.com/NewsRoom/AttachmentNg/6542334e-7ea0-427f-8ea9-a73412adcc5d

Extra Info

Monetary outcomes and evaluation can be found on Lifeist’s web site (www.lifeist.com) and SEDAR (www.sedar.com).

About Lifeist Wellness Inc.

Lifeist is on the forefront of the post-pandemic wellness revolution requiring sensible options. Lifeist is a portfolio wellness firm leveraging developments in science and expertise to allow you to search out your path to wellness. Portfolio enterprise items embrace: CannMart.com that gives Canadian medical clients with a various choice of hashish merchandise from a mess of federally licensed cultivators and its U.S. clients with entry to hemp-derived CBD and smoking equipment; and CannMart’s Canadian leisure hashish distribution enterprise facilitating leisure gross sales to various provincial authorities management boards. The Firm is about to launch a brand new nutraceuticals division within the fourth quarter with disruptive merchandise in wellness. For extra data, go to www.lifeist.com, Cannmart.com and everyonedoesit.co.uk.

Contacts

Lifeist Wellness Inc.
Meni Morim, CEO
Matt Chesler, CFA, Investor Relations
Ph: 647-362-0390
E mail: ir@lifeist.com

Non-IFRS Monetary Measures

Administration evaluates the Firm’s efficiency utilizing a wide range of measures, together with “Web loss earlier than earnings tax, depreciation and amortization” and “Adjusted EBITDA”. The non-IFRS measures mentioned under shouldn’t be thought-about as a substitute for or to be extra significant than income or internet loss. These measures do not need a standardized which means prescribed by IFRS and subsequently they might not be corresponding to equally titled measures introduced by different publicly traded corporations and shouldn’t be construed as a substitute for different monetary measures decided in accordance with IFRS.

The Firm believes these non-IFRS monetary measures present helpful data to each administration and buyers in measuring the monetary efficiency and monetary situation of the Firm.

Administration makes use of these and different non-IFRS monetary measures to exclude the influence of sure bills and earnings that should be acknowledged beneath IFRS when analyzing consolidated underlying working efficiency, because the excluded objects are usually not essentially reflective of the Firm’s underlying working efficiency and make comparisons of underlying monetary efficiency between durations troublesome. Now and again, the Firm might exclude further objects if it believes doing so would end in a simpler evaluation of underlying working efficiency. The exclusion of sure objects doesn’t suggest that they’re non-recurring.

(i) Present and deferred earnings taxes, depreciation and amortization, and share-based compensation have been excluded from the Adjusted EBITDA calculation as they don’t characterize money expenditures.
(ii) Different earnings consisting of achieve on disposal of subsidiary, curiosity earnings, realized achieve on disposition of AFS investments, unrealized achieve on derivatives and different miscellaneous non-recurring earnings have been excluded from Adjusted EBITDA calculation.
(iii) Non-recurring prices associated to restructuring and legacy points have been excluded from Adjusted EBITDA calculation.
(iv) Impairment loss regarding goodwill, buyer record, domains and model names have been excluded from Adjusted EBITDA calculation.
(v) Impairment loss regarding receivable is a provision for anticipated credit score loss to an affiliate and was excluded from Adjusted EBITDA calculation.
(vi) Share of associates loss, internet of tax, is excluded as a result of lack of management.

Ahead-Wanting Info

This information launch comprises “forward-looking data” throughout the which means of relevant securities legal guidelines. All statements contained herein that aren’t historic in nature include forward-looking data. Ahead-looking data will be recognized by phrases or phrases akin to “might”, “anticipate”, “possible”, “ought to”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “consider” or the unfavourable of those phrases, or different comparable phrases, expressions and grammatical variations thereof, or statements that sure occasions or circumstances “might” or “will” occur.

The forward-looking data contained herein, together with the Firm’s continued evolution right into a wellness firm, the anticipated launch of a nutraceutical division within the fourth quarter of 2021 and sure actions the Firm expects to take to function extra effectively are solely predictions and are made as of the date of this information launch. Numerous assumptions have been utilized in growing the forward-looking data all through this information launch which administration believed to be cheap on the time such statements have been made, together with expectations that the introduction of a brand new nutraceutical division, merchandise and types will generate further income, administration’s perceptions of Lifeist’s standing within the on-line market for wellness, hashish and associated merchandise and equipment, Lifeist’s beliefs concerning the anticipated demand for wellness, hashish and associated merchandise and equipment and the anticipated development of that market, outcomes of operations, operational issues, historic tendencies, present circumstances and anticipated future developments, in addition to different concerns which might be believed to be applicable within the circumstances. Whereas we contemplate these assumptions to be cheap based mostly on data presently accessible to administration, there isn’t a assurance that such expectations will show to be right. By its nature, forward-looking data is topic to inherent dangers and uncertainties that could be normal or particular and which give rise to the chance that expectations, forecasts, predictions, projections or conclusions won’t show to be correct, that assumptions might not be right and that targets, strategic targets and priorities won’t be achieved. Quite a lot of components, together with identified and unknown dangers, lots of that are past our management, may trigger precise outcomes to vary materially from the forward-looking data on this press launch. Such components embrace, with out limitation: unexpected developments that will delay the Firm’s capacity to launch its nutraceutical division as anticipated an in a well timed method, dangers regarding the Firm’s capacity to develop and execute its enterprise technique and to implement its varied price slicing measures as anticipated and in a well timed method and the advantages realizable therefrom, dangers particularly associated to the Firm’s operations, and dangers regarding the Firm’s capacity to efficiently function all over the place in a digital atmosphere. Extra threat components will also be discovered within the Firm’s present MD&A and annual data type, each of which have been filed beneath the Firm’s SEDAR profile at www.sedar.com. Readers are cautioned to not put undue reliance on forward-looking data. The Firm undertakes no obligation to replace or revise any forward-looking data, whether or not on account of new data, future occasions or in any other case, besides as required by relevant legislation. Ahead-looking statements contained on this information launch are expressly certified by this cautionary assertion.

Neither the TSX Enterprise Trade nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts accountability for the adequacy or accuracy of this launch or has in any manner authorised or disapproved of the contents of this press launch.

Supply: Lifeist Wellness Inc.