VANCOUVER, British Columbia, Nov. 12, 2024 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. ("LEEF" or the "Company") (CSE: LEEF, OTC: LEEEF), a premier vertical cannabis operator, today announced its financial results for the three and nine months ended September 30, 2024. Unless otherwise noted, all currency references are in United States dollars.
Financial Highlights:
- Net sales of $6.8M for the three months ended September 30, 2024 and $22.6M for the nine months ended September 30, 2024.
- Gross Profit of $1.5M for the three months ended September 30, 2024 and $7.4M for the nine months ended September 30, 2024.
- Gross Margin of 22% for the three months ended September 30, 2024 and 33% for the nine months ended September 30, 2024.
- Unit Sales increase of 79% for the three months ended September 30, 2024.
Management Commentary:
“I’m proud of our team for driving positive momentum this quarter, making substantial progress on key initiatives, innovations and infrastructure upgrades including the completion of Phase 1 construction at Salisbury Canyon Ranch,” stated Micah Anderson, Chief Executive Officer. “This 1,900-acre ranch, with a 187-acre cultivation permit, positions us for our first planting in spring 2025. Additionally, we’ve invested significantly in our extraction technology, increasing our overall capacity by 32%, which will enable larger product output in the coming year. We’re optimistic about the opportunities ahead and excited about the strong foundation we’re building for 2025.”
Kevin Wilson, Chief Financial Officer added “We continue to focus on our long-term financial health and strategic growth, which includes the phase 1 completion of Salisbury Canyon Ranch, as well as innovating in how we manage assets and payment systems. This quarter, the company acquired Bitcoin cryptocurrency in a business-to-business transaction which marks the beginning of a larger strategy of integrating LEEF Brands into the Bitcoin Ecosystem. This is a milestone that reflects our commitment to forward-looking financial strategies. Despite the industry challenges, our focus remains on increasing efficiency and positioning LEEF for success as we move forward.”
Q2 2024 Financial Results Discussion:
Investors are invited to access the financial results and analyses on the Company's investor relations website (https://www.leefbrands.com/investors) and SEDAR+ (www.sedarplus.ca).
| Unaudited Q2 2024 Financial and Operation Metrics: | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Net Loss (IFRS) | $ | (3,186,643 | ) | $ | (1,988,723 | ) | $ | (8,590,853 | ) | $ | (23,767,032 | ) | |||
| Depreciation and amortization | 480,203 | 462,400 | 1,352,606 | 1,395,303 | |||||||||||
| Interest expense | 357,511 | 932,785 | 3,310,710 | 2,863,757 | |||||||||||
| Income tax expense | 442,067 | 555,338 | 2,203,376 | 2,340,699 | |||||||||||
| EBITDA (non-IFRS) | (1,906,862 | ) | (38,200 | ) | (1,724,161 | ) | (17,167,273 | ) | |||||||
| Adjustments: | |||||||||||||||
| Share-based compensation | 121,558 | 200,251 | 1,981,739 | 1,183,393 | |||||||||||
| Change in fair value of contingent consideration | - | 21,129 | - | (114,871 | ) | ||||||||||
| Gain on extinguishment of debt | - | - | (284,660 | ) | - | ||||||||||
| Loss on impairment | - | 1,146 | - | 17,409,624 | |||||||||||
| Change in fair value of derivative liabilities | - | (12,727 | ) | - | (1,079,625 | ) | |||||||||
| Non recurring operating costs | - | 52,896 | - | 1,012,177 | |||||||||||
| Adjusted EBITDA (non-IFRS) | $ | (1,785,303 | ) | $ | 224,495 | $ | (27,082 | ) | $ | 1,243,425 | |||||
About LEEF Brands Inc.
LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state's most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in California. For more information, visit www.LeefBrands.com.
LEEF Brands Inc.
Per: “Kevin Wilson”
Chief Financial Officer
SOURCE: LEEF Brands, Inc.
For further information:
LEEF Brands, Inc., Micah Anderson, CEO, or Kevin Wilson, CFO, 707-703-4111, ir@leefca.com
Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements") including but not limited to: (i) the continued success of the Company's corporate strategy and proposed initiatives; (ii) the closing of the Company's financing related to the sale of its 60% interest in its cultivation and real estate assets in Santa Barbara, California; (iii) the proposed used of proceeds from the completion of the proposed financing; (iv) the Company's ability to enhance efficiencies across the entire manufacturing process, foster stronger relationships with its client-base and produce a predictable and consistent supply of input material; and (v) its ability to continue to generate positive cashflow from operations. Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. All forward-looking statements, including those herein are qualified by this cautionary statement.
Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including financial and operational results not proving to be as expected or on the timelines expected; the Company not completing certain proposed acquisition or financing transactions at all, or on the timelines expected; the Company not achieving the synergies expected; and other risks disclosed in the Company's Annual Information Form and other public filings on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.
For more information on the Company, investors are encouraged to review the Company's public filings on SEDAR+ at www.sedarplus.ca. The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified in such statements. 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, other than as required by law.
