PORTLAND, Ore., Oct. 06, 2023 (GLOBE NEWSWIRE) — Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) (“Chalice” or the “Company”), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, today pre-announces its financial and operating results for the third quarter 2023. All amounts stated are in US Dollars unless otherwise noted.
Third Quarter Preliminary Unaudited Financial Highlights:
- Record quarterly revenues of $8.0 million, a 31% year-over-year increase compared to $6.1 million for the same period in 2020. This total reflects a full quarter of revenues from the Company’s Homegrown Oregon stores but only $0.1 million of revenues related to Cannabliss.
- Estimated gross profit margin for the second quarter 2023 of $3.7M or 46% gross margin compared to $2.1M or 34% in 2020. Gross margin improvements are due to continued growth in sales of vertical products manufactured by Chalice and increased third party processing revenues.
“I am proud of our team’s performance as we continue our year-over-year revenue growth in the third quarter,” said Jeff Yapp, Chief Executive Officer and President. “By maintaining our focus on profitable operations and the accretive acquisition of Homegrown Oregon, the Company has immediately impacted the vertical contribution within the new stores ahead of schedule. The Chalice team is energized by our strategic mission to capitalize on untapped opportunities in Oregon and other states with significant room for consolidation, synergies, and vertical leverage.”
The Company will provide its full third quarter financial report at the next earnings call, to be announced at a later date.
About Chalice Brands Ltd.
Chalice Brands is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with twelve dispensaries owned and four dispensaries under management in Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Chalice operates nationally through Fifth & Root and has operations in Oregon and California.
Visit investors.chalicebrandsltd.com for regular updates.
Investor Relations:
John Varghese
Executive Chairman
Chalice Brands Ltd.
971-371-2685
[email protected]
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer: This press release contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company’s future business operations, including the proceeds from the Offering, the use of the proceeds from the offering, the opinions or beliefs of management and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include but are not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing and retail operations such as unforeseen costs and production shutdowns, difficulties in maintaining brand loyalty, and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. Forward-looking information is provided herein for the purpose of presenting information about management’s current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This press release does not constitute an offer of securities for sale in the United States, and such securities may not be offered or sold in the United States absent registration or an exemption from registration or an exemption from registration.
