Business

Sugarbud Announces Filing of Fourth Quarter and Full Year 2021 Results


CALGARY, Alberta, May 02, 2022 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDF) (“Sugarbud” or the “Company“) is happy to announce the submitting of its audited monetary statements (“Financial Statements“) for the year-ended December 31, 2021 and associated administration’s dialogue and evaluation (“MD&A“). Sugarbud’s Financial Statements and MD&A can be found on SEDAR at www.sedar.com and on Sugarbud’s web site.

FISCAL 2021 HIGHLIGHTS

SIGNIFICANT YEAR-OVER-YEAR INCREASE IN TOPLINE REVENUE & CONSUMER DEMAND | Sugarbud grew topline gross income on an unadjusted foundation by over 348% ($2,400,193 in 2021 vs. $535,756 in 2020) and by over 300% on an as reported foundation ($2,194,008 in 2021, $535,756 in 2020 ).1 Unadjusted quarter-over-quarter gross income elevated by 11.6% to $743,985, consistent with beforehand disclosed steerage. Total grams shipped additionally considerably elevated year-over-year because the Company began to see the complete advantage of the availability agreements put in place earlier within the yr and as client adoption and repeat purchases continued to realize traction. Total grams shipped in 2021 elevated by 590% to 422,266 (61,236 in 2020). Grams bought in This autumn, 2021 elevated by over 150% vs the prior yr interval (136,083 in 2021, 52,896 in 2020). A testomony to the Company’s unwavering focus and dedication to delighting the patron and the underlying energy of the craft hashish sector.

Management expects the pattern of sequential quarter over quarter progress to proceed in Q1 2022 with estimated gross income forecasted to be between $900,000 and $1,000,000, and whole grams shipped between 140,000 and 150,000. Furthermore, the Company is nicely on monitor for a fourth consecutive quarter of report gross income with Q2 2022 buy orders already in hand of $762,106 as of May 2, 2022.

1 See “Non-IFRS Measures” under.

MAINTAINED HEALTHY UNDERLYING GROSS MARGINS | Before the impression of honest market worth provisions, prior interval worth changes for discontinued merchandise, and one-time product growth prices, gross margin earlier than honest market worth changes for This autumn, 2021 was 23%.2 Despite persistent industry-wide worth compression the Company expects to proceed to construct upon a sound working mannequin to keep up and enhance gross revenue margins in 2022. Key working metrics reminiscent of money price to develop proceed to enhance yr over yr and the Company completed 2021 with a median money price to develop per gram of $1.51 vs. $2.82 in 2020.3

Total gross margin on an unadjusted foundation for 2021 was 28% vs. 21% in 2020.

Management forecasts additional important enchancment in gross revenue for the yr 2022; because of the optimistic impression on product mixture of the Company’s Cannabis 1.0 and a couple of.0 product, disciplined worth administration and additional working efficiencies on the Company’s Stavely facility.

2 See “Non-IFRS Measures” under.
3 See “Non-IFRS Measures” under.

EXPANDED MARKET ACCESS | Sugarbud obtained approval from Health Canada for its amended license allowing the sale of hashish extract, edible, and topical merchandise (“Cannabis 2.0 License“) on September 29, 2021. Sugarbud is now amongst a handful of craft hashish LPs capable of instantly promote its expanded portfolio of remarkable Cannabis 2.0 merchandise to all licensed provincial and territorial distributors/retailers in addition to registered medical sufferers nationwide. Sugarbud has constructed up a listing of Cannabis 2.0 work-in-progress and launched its first Cannabis 2.0 merchandise underneath the Company’s personal Cannabis 2.0 License in late This autumn 2021.

LAUNCH OF FIRST >30% THC STRAIN | With the launch of GMO Cookies, the Company efficiently crossed the 30% efficiency barrier for the primary time on a business batch whereas sustaining a excessive terpene profile – a fragile balancing act that administration believes units Sugarbud’s cultivation and post-harvest processing strategies aside.

RECORD QUARTERLY YIELDS AND THC CONTENT | During the yr ended December 31, 2021, the Company efficiently accomplished eight harvests leading to a complete of 1,009,213 grams harvested with an annual yield per plant of 92.05g/plant. Sugarbud’s cultivation and processing operations proceed to ship distinctive terpene content material (2-5%), whole efficiency (THC 20-31%) and an {industry} main post-harvest treatment; a testomony to the Company’s unwavering concentrate on distinctive genetics, plant well being and finest observe cultivation and post-harvest processing strategies.

EXPANDED DISTRIBUTION AND REACH | During the primary half of 2021, the Company labored to ascertain clear routes to market in key provinces and territories. The Company now has direct entry to over 90% of the leisure hashish retail community in Canada throughout 6 provinces and territories in addition to full nationwide entry to licensed medical sufferers by a Medical Supply Agreement with Mendo Cannabis which was introduced subsequent to December 31, 2021.

Management views the institution of those clear routes to main Canadian markets and subsequent product portfolio growth inside every market as each vital and important catalysts for future sustainable progress. The profit of those provide agreements and corresponding client adoption of Sugarbud merchandise throughout all main markets is evidenced by the sturdy sequential quarter over quarter progress the Company continues to see.

About Sugarbud

“Hand-Crafted Cannabis for a New Era”

Sugarbud is a consumer-driven craft hashish firm centered on the cultivation and manufacturing of superior, select-batch, craft hashish merchandise. Our imaginative and prescient and mission are to grow to be a trusted and well-respected client model famend for offering distinctive high-quality craft hashish merchandise to authorized markets by delighting probably the most discerning of hashish customers.

The Sugarbud Craft Cannabis Collection provides customers “Hand-Crafted Cannabis for a New Era”. The Company is proudly Albertan and is proud to share Western Canada’s lengthy custom of remarkable craft hashish with probably the most discerning of fanatics. Sugarbud strives to outline the intersection of product craftsmanship, high quality, and worth for customers within the Canadian craft hashish area.

Sugarbud Craft Cannabis merchandise are at the moment accessible to grownup leisure customers within the Yukon Territory, British Columbia, Alberta, Saskatchewan, Ontario and nationally to registered medical sufferers by MendoCannabis.ca.

We Take Pride.

We Take Our Time.

Experience The Difference.

CONTACTS:

Websites:
http://www.sugarbud.ca/
http://craftcannabiscollection.ca

Non-IFRS Measures

This press launch incorporates sure monetary measures that don’t have a standardized which means prescribed by IFRS. These non-IFRS monetary measures might not be similar to comparable measures offered by different issuers. Unadjusted gross income and unadjusted gross margin usually are not acknowledged measures underneath IFRS. These metrics could also be helpful to traders and analysis securities analysts in evaluating working efficiency. Sugarbud’s methodology of calculating these measures could differ from different firms and accordingly, might not be similar to measures utilized by different firms.

Unadjusted gross revenue” (non-GAAP monetary measure) excludes the impression of the Company’s prior interval worth changes and return provisions used to calculate the as reported gross income for the Company. Management believes that the unadjusted gross income is a significant metric to evaluate the underlying quarter-over-quarter and year-over-year progress of the Company’s revenues and its merchandise.

Unadjusted gross margin” (supplementary monetary measure) excludes the impression of the Company’s prior interval worth changes, return provisions, the impression of stock revaluation provisions and one-time prices used to calculate the as reported gross income for the Company. Management believes that unadjusted gross margin is a significant metric to evaluate the underlying quarter-over-quarter and year-over-year profitability of the Company and its merchandise.

Cash cost to grow per gram” (supplementary monetary measure) contains the capitalization of sure manufacturing prices together with direct labor and working overhead. Cash price to develop per gram is calculated as money price to develop divided by the grams harvested.

The above non-IFRS measures are supposed to supply extra data and shouldn’t be thought-about in isolation or as an alternative to measures of efficiency ready in accordance with IFRS. Please seek advice from the MD&A for extra data referring to specified monetary measures together with non-GAAP monetary measures, non-GAAP monetary ratios and capital administration measures. The MD&A could be accessed both on Sugarbud’s web site at www.sugarbud.ca or underneath the Company’s profile on www.sedar.com.

Forward Looking and Cautionary Statements

This information launch incorporates forward-looking statements. More significantly, and with out limitation, this information launch incorporates statements regarding: Sugarbud’s evaluation of future plans; future enterprise technique; operations and hashish cultivation and processing, together with gross sales, advertising and distribution alternatives; product high quality; the event, manufacturing, sale and distribution of Sugarbud’s Craft Cannabis Collection, together with new product traces and the traits thereof; future progress; success of the Company’s GMO cookies; impression of Cannabis 2.0 License; relationships established by current provide agreements; and buyer satisfaction. When used on this doc, the phrases “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and comparable expressions are supposed to be among the many statements that establish forward-looking statements. The forward-looking statements are based on the idea of expectations and assumptions made by Sugarbud. Forward-looking statements are topic to a variety of dangers and uncertainties, and though Sugarbud believes that the expectations represented by such forward-looking statements are cheap, there could be no assurance that such expectations might be realized. Any variety of essential elements might trigger precise outcomes to vary materially from these within the forward-looking statements together with, however not restricted to: at the moment contemplated growth and growth plans could stop or in any other case change; manufacturing of hashish could also be decrease than anticipated; skill to ship hashish merchandise could also be decrease than anticipated; demand for Sugarbud’s merchandise could also be decrease than anticipated; outcomes of manufacturing and sale actions; outcomes of scientific analysis; modifications in costs and prices of inputs; demand for labour; demand for merchandise; failure of counter-parties to carry out contractual obligations; failure to keep up client model recognition and loyalty of shoppers; reliance on relationships with wholesalers and retailers for distribution of merchandise and failure to keep up strategic enterprise relationships; intense competitors, together with from illicit sources; uncertainty and continued evolution of markets; product legal responsibility litigation; reliance on data know-how; infringement on mental property; failure to learn from partnerships; sensitivity of end-customers to elevated gross sales taxes and financial circumstances; failure to adjust to sure rules; departure of key administration personnel or lack of ability to draw and retain expertise; actions and initiatives of federal and provincial governments and modifications to authorities actions, initiatives and insurance policies and the execution and impression thereof; the power to implement company methods; the state of home capital markets; the power to acquire financing; modifications typically market circumstances; {industry} circumstances and occasions; the scale of the medical marijuana market and the leisure marijuana market; authorities rules, together with future legislative and regulatory developments involving medical and leisure marijuana; development delays; dangers inherent within the agricultural enterprise, reminiscent of bugs, plant ailments and comparable agricultural dangers which may have a big impression on the scale and high quality of the harvest of hashish crops; competitors from different {industry} individuals; and different elements extra absolutely described occasionally within the studies and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that present world uncertainty with respect to the unfold of the COVID-19 virus and its impact on the broader world economic system could proceed to have a big destructive impact on the Company. While the exact impression of the COVID-19 virus on the Company stay unknown, speedy unfold of the COVID-19 virus could proceed to have a fabric opposed impact on world financial exercise, and can lead to volatility and disruption to world provide chains, operations, mobility of individuals and the monetary markets, which might have an effect on rates of interest, credit score scores, credit score danger, inflation, enterprise, monetary circumstances, outcomes of operations and different elements related to the Company. Please seek advice from Sugarbud’s most up-to-date annual data type and administration’s dialogue and evaluation for extra danger elements referring to Sugarbud, which could be accessed underneath Sugarbud’s profile on www.sedar.com. Except as required by relevant legal guidelines, Sugarbud doesn’t undertake any obligation to publicly replace or revise any forward-looking statements.

Neither the TSXV nor its regulation companies supplier (as that time period is outlined within the insurance policies of the TSXV) accepts accountability for the adequacy or accuracy of this launch.

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