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Quarterly gross revenue of approximately $7 million, up 12% year-over-year and up 12% from Q2 2021; and
Quarterly gross profit more than doubled year-over-year in terms of dollars and percentage to approximately 15% in Q3 2021 compared to 7% in Q3 2020 and 6% in Q2 2021.
TORONTO, Sept. 28, 2021 (GLOBE NEWSWIRE) -- Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), a company that leverages advancements in science and technology to enable you to find your path to wellness, is pleased to announce that it expects year-over-year and sequential increases in revenue and gross profit for the fiscal third quarter ended August 31, 2021, based on preliminary and unaudited results. Lifeist expects to release audited third quarter 2021 financial results on or about October 29, 2021.
The Company anticipates that gross revenue for the fiscal third quarter ended August 31, 2021 will be approximately $7 million, an increase of approximately 12% over Q3 2020 and Q2 2021 revenues of $6.3 million, respectively. The growth in revenue is backed by a solid foundation laid at the Company’s wholly owned subsidiary, CannMart Inc. In addition, the Company anticipates more than doubling its gross profit in terms of dollars and percentage (after inventory write downs) to approximately 15% in Q3 2021 compared to 7% in Q3 2020 and 6% in Q2 2021.
“Positive trends and execution at our cannabis subsidiary, CannMart Inc. resulted in increased Q3 revenues and gross profit,” said Meni Morim, CEO of Lifeist. “CannMart is experiencing strong demand for its portfolio of products from consumers, retailers and provincial wholesalers across Canada. In addition to the estimated revenue increase, we anticipate more than doubling our gross profit compared to the same period in the previous year. We continue to strategically focus our attention on increasing gross margins within our current product portfolio and bringing on newer SKUs with significantly higher gross margins. Initial sales from our in-house brand “Roilty” have been very well received by our provincial partners and we are excited to expand our product portfolio with the upcoming launch of our limited-edition SKUs made at subsidiary CannMart Labs Inc.’s state-of-the-art BHO extraction facility by the end of October. Overall, there has been a significant amount of work done across the Company, laying the foundations for growth, and I am very pleased to say these efforts are starting to pay dividends.”
Added Morim, "CannMart's turnaround comes at an exciting time as Lifeist progresses along its evolution into a bold and disruptive wellness company, striving to connect humanity with safe, innovative and often daring pathways to individual definitions of wellness. We are on track to launch our nutraceuticals division in Q4 2021."
2021 Annual General Meeting
The Company has scheduled its 2021 Annual General Meeting (the “AGM”) to be held in Toronto on November 30, 2021. In accordance with the requirements of “Notice-and-Access” the Notice of Meeting and Management Information Circular, outlining the meeting resolutions, along with other required proxy materials, will be filed on SEDAR at www.sedar.com and the Company’s website in due course, and announced by the Company when filed.
The preliminary estimated financial results and other data for the three months ended August 31, 2021 set forth above are subject to the completion of the Company’s financial closing procedures. This data has been prepared by, and is the responsibility of, the Company’s management and audit committee. Lifeist independent registered public accounting firm, Baker Tilly LLP does not express an opinion or any other form of assurance with respect thereto. The Company currently expects that its final results of operations and other data for the interim period ended August 31, 2021 will be consistent with the estimates set forth above, but such estimates are preliminary and Lifeist’s actual results of operations and other data could differ materially from these estimates due to the completion of its quarterly review procedures, final adjustments, and other developments that may arise between now and the time such unaudited consolidated financials statements for the three months ended August 31, 2021 are released.
About Lifeist Wellness Inc.
Lifeist is at the forefront of the post-pandemic wellness revolution requiring smart solutions. Lifeist is a portfolio wellness company leveraging advancements in science and technology to enable you to find your path to wellness. Portfolio business units include: CannMart.com that provides Canadian medical customers with a diverse selection of cannabis products from a multitude of federally licensed cultivators and its U.S. customers with access to hemp-derived CBD and smoking accessories; and CannMart’s Canadian recreational cannabis distribution business facilitating recreational sales to a number of provincial government control boards. The Company is set to launch a new nutraceuticals division in Q4 2021 with disruptive products in wellness.
Information on Lifeist and its many products can be accessed through the links below:
Lifeist Wellness Inc.
Meni Morim, CEO
Edward Miller, VP Investor Relations
Source: Lifeist Wellness Inc.
FORWARD-LOOKING INFORMATION – This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen.
The forward-looking information contained herein, including the Company’s continued evolution into a wellness company, the anticipated launch of a nutraceutical division in the fourth quarter of 2021 and statements related to the Company’s anticipated gross revenue and gross profit for the interim period ended August 31, 2021 are only predictions and are made as of the date of this news release. Forward-looking information relating to the Company’s anticipated revenue and gross profit is strictly provided as financial guidance to investors as prepared by management and may not be appropriate for any other purpose, and remains subject to the interim financial statements of the Company and related MD&A for the fiscal third quarter ended August 31, 2021, to be released on or prior to October 29, 2021.Various assumptions were used in developing the forward-looking information throughout this news release which management believed to be reasonable at the time such statements were made, including, without limitation, interim financial results for the third quarter ended August 31, 2021 being in line with preliminary financial results reviewed by management, expectations that the introduction of new divisions, products and brands will generate additional revenue, management’s perceptions of Lifeist’s standing in the online marketplace for wellness, cannabis and related products and accessories, Lifeist’s beliefs regarding the expected demand for wellness, cannabis and related products and accessories and the expected growth of that market, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: the Company's work on the financial statements for the quarter ended August 31, 2021 not being complete and, as such, the preliminary results presented in this press release may be subject to change based on the final interim financial statements; risks relating to the Company’s ability to develop and execute its business strategy as anticipated and in a timely manner and the benefits realizable therefrom, risks specifically related to the Company’s operations, risks relating to the Company’s ability to successfully operate everywhere in a virtual environment. Additional risk factors can also be found in the Company’s current MD&A and annual information form, both of which have been filed under the Company’s SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.