CALGARY, Alberta, April 11, 2022 (GLOBE NEWSWIRE) -- CE Brands Inc. (TSXV: CEBI; CEBI.WT) (“CE Brands” or the “Company”) a data-driven consumer-electronics company, today announced selected preliminary unaudited financial and operational results for the fourth quarter ended March 31, 2022 (“Q4 2022”). CE Brands is issuing this press release pursuant to its obligations under applicable Canadian securities laws to enable it to disclose this information in meetings with prospective investors as it explores a range of near-term financing opportunities. CE Brands does not intend to continue to provide preliminary results for future periods. Unless otherwise noted, all amounts are in Canadian dollars.
Selected Preliminary Q4 2022 Financial Results
- Q4 2022 total revenue of approximately $3.0 million, which is our third consecutive quarter of increasing revenue and within our previously announced guidance range of $3.0 to $4.0 million, representing total revenue growth of approximately 100% over Q3 2022 and as compared to total revenue of $1.3 million in Q4 2021 (See “Disclaimer Regarding Preliminary Unaudited Financial Information” and “Forward-Looking Information”).
Q4 2022 Operational Milestones
- First full fiscal quarter of sales of the moto watch 100 following the product launch in November 2021
- Launched Kodak Infinio F882 Outdoor Security Camera in January 2022
- New strategic distribution agreements for our Motorola branded smartwatch product line in the following regions further expanding the Company’s global distribution range in:
- Central & South America and the Caribbean with Smile Market Inc., DPC DO Brazil and LUXAMERICA S.A in February 2022
- Central & Eastern Europe and South Asia with AITONIX and Smile Market Inc. in March 2022
- Additional sales channels in North America including:
- Costco Wholesale Canada Ltd. and Best Buy Canada Ltd. in Canada for the moto watch 100
- HSN Holding LLC in the United States for the Kodak Infinio F882 Outdoor Security Camera
- Bed Bath and Beyond Inc. in the United States for the Kodak Smart Dual Fan Air Purifier
"Our preliminary Q4 2022 revenue results reflect improving sales trends and the revenue generating potential of our expanding portfolio of branded products. We introduced two new products to the market in the past quarter with initial sales in line with our expectations," commented Craig Smith, CEO of CE Brands. "Despite ongoing challenges in the global supply chain, we are confident that sales will continue to increase for these two products throughout 2022 and are excited for the launch of an additional three new products in the first half of 2022."
CE Brands anticipates filing its audited annual financial statements for the fiscal year ended March 31, 2022 (the “Audited Financial Statements”), and related management's discussion and analysis on SEDAR in late June 2022.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in the United States nor shall there be any sale of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States. Accordingly, any of the securities described herein may not be offered or sold in the United States or to U.S. persons unless an exemption from registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please visit www.cebrands.ca.
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About CE Brands
CE Brands Inc. develops products with leading manufacturers and iconic brand licensors by utilizing proprietary data that identifies key market opportunities. With sales today in over 70 countries, our innovative, highly repeatable process, which we call the “CE Method”, has created an optimal growth path for CE Brands to be the premier global licensed brand manufacturer.
Disclaimer Regarding Preliminary Unaudited Financial Information
The Company has not yet completed its financial closing process for the fiscal year ended March 31, 2022, and the selected unaudited results for Q4 2022 provided above are preliminary estimates. Actual results may differ materially from these estimates due to the completion of the Company’s financial closing procedures, final adjustments, review by the Company’s auditors and other developments that may arise between now and the time the financial results are finalized. These estimates are not a comprehensive statement of the Company’s financial results for Q4 2022 and should not be viewed as a substitute for full financial statements prepared in accordance with International Financial Reporting Standards, and these estimates are not necessarily indicative of the results to be achieved for Q4 2022. While the Company does not expect there to be any material changes to the financial information presented in this press release, to the extent that it is inconsistent with the information contained in the Audited Financial Statements, the financial information contained in this news release shall be deemed to be modified or superseded by such Audited Financial Statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.
The Company’s Audited Financial Statements are not expected to be available until after a financing is completed, assuming any such financing is completed. The Company is issuing preliminary results in order to enable it to disclose such information in connection with a potential financing, and the Company does not intend to provide preliminary results in the future. The preliminary results provided in this press release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of limitations, risks and uncertainties. Please see the section below entitled “Forward-Looking Information”.
The preliminary results have been prepared by, and are the responsibility of, management of the Company. The Company’s independent registered public accounting firm, KPMG LLP, has not reviewed the preliminary results nor have they performed any procedures with respect to the preliminary results. Neither KPMG LLP nor any other independent accountants express an opinion or any other form of assurance with respect to the preliminary results.
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to disclosure about future conditions, courses of action, and events. The use of any of the words “anticipates”, “believes”, “expects”, “intends”, “plans”, “will”, “would”, and similar expressions are intended to identify forward-looking information. More particularly and without limitation, this press release includes forward-looking information with respect to expansion into prospective retail markets, expectations with respect to futures sales, including anticipated sales growth, anticipated product launch timelines and the anticipated availability, performance, appeal and demand of our products and the Company’s expectations related thereto and the timing and completion of any financing and related matters. The forward-looking information is based on certain key expectations and assumptions, including the timing of product shipments and deliveries, the anticipated terms of any financing and the receipt of all regulatory and related approvals for any financing.
There can be no certainty that CE Brands will be able to successfully complete any financing transaction on the terms contemplated, in a timely manner or at all. If a financing transaction does not proceed, CE Brands may be materially adversely impacted resulting in material uncertainty regarding the Company’s ability to meet its financial obligations as they become due and continue as a going concern.
Although CE Brands believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because CE Brands cannot give any assurance that they will prove to be accurate. By its nature, forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed in this press release. Such risks and uncertainties include, among others, the impact of the evolving Covid-19 pandemic on the Company’s business, operations and sales; reliance on third party manufacturers and suppliers; the Company’s ability to stabilize its business and secure sufficient capital; the Company’s available liquidity being insufficient to operate its business and meet its financial commitments, which could result in the Company having to refinance or restructure its debt, sell assets or seek to raise additional capital, which may be on unfavorable terms, if available at all; the inability to implement the Company’s objectives and priorities for 2022 and beyond, which could result in financial strain on the Company and continued pressure on the Company’s business; risks associated with developing and launching new products, and products that the Company anticipates will be launched in the future; increased indebtedness and leverage; the fact that historical and projected financial information may not be representative of the Company’s future results; the inability to position the Company for long-term growth; risks associated with issuing new equity including the possible dilution of the Company’s outstanding common shares; the value of existing equity following the completion of any financing transaction; the Company defaulting on its obligations, which could result in the Company having to file for bankruptcy or undertake a restructuring proceeding; the Company being put into a bankruptcy or restructuring proceeding; and the risk factors included in CE Brand’s continuous disclosure documents available on www.sedar.com. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date of this press release, and to not use such forward-looking information other than for its intended purpose. CE Brands undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable securities legislation.
Further Information
For further information about CE Brands or its principal operating subsidiary, eBuyNow eCommerce Ltd., please contact:
| Kalvie Legat Chief Financial Officer 778-771-0901 | Rob Knowles Manager, Investor Relations 1-855-770-2324 ir@cebrands.ca |
