Note 1 – Gross margin before fair value adjustments is a non-IFRS performance measure. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details. Management determined that the exclusion of the fair value adjustment is an alternative representation of performance. The fair value adjustment is a non-cash gain (loss) and is based on fair market value less cost to sell.
Note 2 – Adjusted EBITDA is a non-IFRS performance measure. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.
Note 3 – Average recreational gross pricing per gram is a non-IFRS performance measure and is calculated by determining the total recreational sales divided by the total number of recreational grams sold. Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.
Note 4 – Weighted average gross pricing per gram is a non-IFRS performance measure and is calculated by determining the total flower sales divided by the total number of flower grams sold. The primary driver of changes in this metric are shifts in business mix (e.g. between recreational and export sales). Refer to “Non-IFRS Financial Measures And Other Measures” below for further details.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking information” as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding: the Company’s ability to increase production levels at the 3PL facility; the Company’s ability to expand it’s global export client base; the Company’s ability to increase the quantity of cannabis products available for sale; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Examples include statements that the Company will operate in a fiscally disciplined manner; preliminary financial results are subject to the completion of the Company’s financial closing procedures and have not been audited or reviewed by the Company’s independent auditor; that the Company will build long-term shareholder value and reduce operational expenses; or that the Company will increase its revenue and gross margins.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets and inflation-related risks; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company’s annual information form dated February 28, 2022, filed with Canadian securities regulators and available on the Company’s profile on SEDAR at www.sedar.com.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. For instance, there can be no assurance that the Company’s financial results for Q2 2022, including the Company’s revenues or any other preliminary financial results for Q2 2022 will be as projected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
NON-IFRS FINANCIAL MEASURES AND OTHER MEASURES:
Certain measures, such as adjusted EBITDA, gross margin, gross Marin % and average recreational gross pricing per gram, in this press release do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and may, therefore, but considered non-IFRS financial measures, non-IFRS measures, or other measures and may not be comparable to similar measures presented by other issuers. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospect in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approach may differ from those used by others, and accordingly, the sue of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures include:
(This information is primarily sourced from Avant Brands. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).