IRVINE, Calif.–()–ManifestSeven Holdings Corporation (previously P&P Ventures Inc.) (“M7” or the “Company”) (CSE: MSVN), California’s first built-in omnichannel platform for authorized hashish, as we speak introduced its monetary outcomes for the three and 9 months ended August 31, 2020. The outcomes comply with final month’s itemizing (“Listing”) of the Company’s widespread shares on the Canadian Securities Exchange. All monetary data on this press launch is supplied in U.S. {dollars} until in any other case indicated.

“We are happy to announce our third quarter financial results, which demonstrate the strides M7 continues to make in positioning itself in California as the first integrated omnichannel platform for legal cannabis,” mentioned Sturges Karban, M7’s Chief Executive Officer and Director. “I am particularly proud of our team for continuing to drive growth despite the extraordinary adversity and uncertainty that M7—like many businesses across all sectors around the world—has confronted during the last several months.”

Financial Highlights:

  • Revenue for the three and 9 months ended August 31, 2020 elevated 64% and 96% year-over-year to $4.7 million and $13.eight million, respectively.
  • Revenue from hashish distribution, supply, and dispensary operations, the Company’s core working section, for the 9 months ended August 31, 2020 elevated 217% year-over-year to $9.Three million.
  • The Company generated file income of $3.5 million from ongoing hashish operations for the three months ended August 31, 2020, a rise of 94% year-over-year and 30% sequentially.
  • Gross margin for the 9 months ended August 31, 2020 was 31% of income, up from 30% of income year-over-year, whereas gross margin from hashish operations for the 9 months ended August 31, 2020 was 30% of income, up from 17% year-over-year.
  • Adjusted EBITDA loss for the three months ended August 31, 2020 decreased 69% year-over-year and eight% sequentially to ($1.3) million.
  • Net loss from operations for the three months ended August 31, 2020 decreased 59% year-over-year and eight% sequentially to ($1.9) million.

Operational Highlights:

  • The Company’s hashish operations generated important development each year-over-year and sequentially, with M7’s core working section representing 68% of complete income for the 9 months ended August 31, 2020, up from 44% for a similar interval in 2019, and a file 75% of complete income for the three months ended August 31, 2020.
  • M7 continued to broaden its protection of California to maintain up with the rising demand for its hashish distribution companies. The variety of licensees serviced by the Company’s distribution division totaling 270 as of August 31, 2020, up 315% year-over-year and 29% sequentially.
  • M7’s retail buyer base in core markets all through California continued to broaden quickly. The variety of distinctive prospects served by the Company’s Weden-branded dispensary and supply operations through the three months ended August 31, 2020 elevated 133% year-over-year.
  • M7 continued to implement the strategic value discount program, initiated within the second quarter of 2020, concentrating on non-core operations of the Company, leading to a 42% year-over-year and 17% sequential discount in working bills and persevering with to advance the Company on its pathway to web profitability.

Management Commentary:

“These results demonstrate that we can accomplish both missions and validates the notion that fiscal discipline does not necessarily come at the expense of revenue growth,” mentioned Pierre Rouleau, M7’s Chief Operating Officer. “In the face of circumstantial challenges as wide-ranging as the continued COVID-19 pandemic and unexpected as wildfires of unprecedented scale breaking out across the western United States, M7 has determinedly persevered, without wavering or faltering, to deliver on its core operational mandates.”

“We have governed the company under two strategic imperatives, and we will continue to do so for the foreseeable future to ensure that we unlock the full extent of M7’s underlying growth potential,” added Mr. Karban. “First, we are laser-focused on maintaining M7’s established trend of driving steady, healthy, and organic growth on the top line; second, we are committed to progressing the company along a well-defined pathway to profitability until we have achieved the ultimate objective of sustained, consolidated operational self-funding.”

ABOUT MANIFESTSEVEN:

ManifestSeven is the primary built-in omnichannel platform for authorized hashish, merging compliant distribution with a retail superhighway. M7, headquartered in Irvine, California, companies the wants of lawful operators throughout the availability chain, from the cultivator to the buyer, by way of an expansive community of 4 amenities stretching from the San Francisco Bay Area to San Diego. M7 additional augments its business-to-business worth proposition with a rising portfolio of owned and operated retail operations situated in main metro markets, together with brick-and-mortar dispensaries, native on-demand supply companies, e-commerce, and subscription choices.

NON-IFRS FINANCIAL MEASURES:

Adjusted EBITDA is a monetary measure that’s not outlined below IFRS. M7 defines Adjusted EBITDA as web revenue (loss), or “earnings”, earlier than curiosity, revenue tax, depreciation and amortization, stock-based compensation (together with, however not restricted to, non-cash transactional bills related to the Listing), and accretion expense, modifications in honest worth of by-product liabilities, good points and losses on investments and securities, and one-time prices associated to acquisition and financing associated prices. M7 believes Adjusted EBITDA to be a helpful measure of the monetary efficiency of the Company, because it offers extra significant working outcomes by excluding the results of bills that aren’t reflective of working enterprise efficiency. This supplemental non-IFRS monetary measure shouldn’t be thought-about superior to, as an alternative choice to or as an alternative choice to, and may solely be thought-about along side, the IFRS monetary measures introduced herein.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:

This press launch comprises “forward-looking information” throughout the that means of relevant Canadian securities laws. Such forward-looking data and forward-looking statements usually are not consultant of historic info or data or present situation, however as an alternative symbolize solely the Company’s beliefs and assumptions concerning future occasions, plans or goals, lots of which, by their nature, are inherently unsure and out of doors of the Company’s management. This forward-looking data relies on sure assumptions made by administration and different components utilized by administration in growing such data. The forward-looking data and forward-looking statements contained herein might embody, however usually are not restricted to, expectations concerning the timing and outcomes of the Company’s operations, continued cost-cutting efforts, and different concerns that might affect reaching optimistic Adjusted EBITDA. Although the Company believes that the assumptions and components utilized in getting ready, and the expectations contained in, the forward-looking data and statements are cheap, undue reliance shouldn’t be positioned on such data and statements, and no assurance or assure might be on condition that such forward-looking data and statements will show to be correct, as precise outcomes and future occasions may differ materially from these anticipated in such data and statements. Factors that might trigger the precise outcomes to vary materially from these in forward-looking statements embody, regulatory actions, market costs, and continued availability of capital and financing, and basic financial, market or enterprise situations. The forward-looking data and forward-looking statements contained on this press launch are made as of the date of this press launch, and the Company doesn’t undertake to replace any forward-looking data and/or forward-looking statements which can be contained or referenced herein, besides in accordance with relevant securities legal guidelines. All subsequent written and oral forward-looking data and statements attributable to the Company or individuals performing on its behalf are expressly certified in its entirety by this discover.

The securities of the Company referred to on this press launch haven’t been and won’t be registered below the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities legal guidelines. Accordingly, the securities of the Company might not be supplied or bought throughout the United States until registered below the U.S. Securities Act and relevant state securities legal guidelines or pursuant to an exemption from the registration necessities of the U.S. Securities Act and relevant state securities legal guidelines. This press launch doesn’t represent a proposal to promote or a solicitation of any provide to purchase any securities of the Company in any jurisdiction during which such provide, solicitation or sale could be illegal.

 

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