2022-05-31 | CSE:VIBE | Press release
Sacramento, Calif.–(Newsfile Corp. – May 31, 2022) – Vibe Growth Corporation (CSE: VIBE) (OTCQX: VIBEF) (the “Company” Where “Vibe“), a vertically integrated California-based cannabis company, is pleased to announce its first quarter 2022 financial results. All financial information is provided in U.S. dollars, unless otherwise indicated. The Condensed Consolidated Financial Statements and MD&A (” MD&A”) for the three-month period ended March 31, 2022, are available on the Company’s SEDAR profile at www.sedar.com and on Vibe’s website at www.vibebycalifornia.com.
“During the first quarter of 2022, the Vibe team focused on opening our new dispensary in Ukiah, preparing for the upcoming opening of the Salinas dispensary, and bringing the expansion of the Sacramento culture,” commented Vibe CEO Mark Waldron. “We remain committed to further developing our retail dispensary sites in California, expanding our culture footprint, realizing significant economies of scale while improving margins, and maximizing return on capital for shareholders of vibes.”
“We are pleased to see an improvement in Q2 versus Q1 as consumer demand and pricing improved in the first 2 months of Q2. Like many other cannabis operators, we experienced lower revenues in Q1 versus 2021, and Vibe has implemented marketing and sales initiatives that we believe will deliver meaningful results.In addition, Vibe’s focus on maintaining a lower cost structure than most of its peers has strengthened our competitive position,” added Waldron. “Vibe anticipates continued improvement in consumer demand and, combined with new stores in Salinas and Ukiah and significant growth in agricultural production this year, we expect a return to profitability in the second half of 2022.”
First Quarter 2022 Highlights
- Retail revenue was $5.5 million for the first quarter of 2022, which represents a decrease of 10.9% compared to the previous quarter.
- Dispensary Gross Margin increased to 36.5%, compared to 32.5% in the comparative quarter of 2021(1);
- E-commerce orders represented 19.8% of transactions in the first quarter of 2022;
- Treasury as of March 31, 2022, was $7,480,325.
(1) This is a non-IFRS measure. Readers are cautioned that the amounts presented do not have any standardized meaning prescribed by IFRS. Please see the disclosure of non-GAAP financial measures below.
First Quarter 2022 Financial Highlights
The main financial results of the Company for the three months ended March 31, 2022 and 2021 are as follows:
| U.S. dollars | For the three months ended March 31, 2022 |
For the three months ended March 31, 2021 |
| Total income(a) | $5,670,976 | $7,542,735 |
| Gross margin | $1,959,431 | $2,433,712 |
| Adjusted gross margin(b) | 1,943,431 | $2,349,924 |
| Adjusted gross margin(b) | 34.3% | 31.2% |
| Net profit (loss) | ($990,468) | $68,245 |
| Adjusted EBITDA(a) | ($25,506) | $897,666 |
Special note regarding non-GAAP financial measures
(a) This is a non-GAAP measure. Readers are cautioned that the amounts presented do not have any standardized meaning prescribed by IFRS. See the discussion of non-IFRS measures in the MD&A for a reconciliation to the measures presented in the Company’s consolidated financial statements.
(b) Excluding change in fair value of biological assets.
Additional Q1 2022 Highlights:
- Vibe Growth Corporation Announces Expansion of California Dispensary Portfolio (February 8, 2022)
Vibe Growth Corp. received tentative approval from the California Department of Cannabis Control to begin retail sales for adult use at its new dispensary in Salinas, California. Read the full version.
- Vibe further expands its California dispensary portfolio, receiving state license to open its seventh dispensary in Ukiah, Calif. (February 23, 2022)
Vibe has received its license from the DCC under its subsidiary – Vibe Ukiah LLC, for sales for adult use at its dispensary located at 441 State Street N, conveniently located in the heart of bustling downtown Ukiah. New Vibe By California-branded Ukiah dispensary set to open March 4and offers exceptional pedestrian access and visibility from the city’s bustling downtown area. The Ukiah Dispensary will offer consumers in the Mendocino Valley a wide selection of leading cannabis brands and products. Read the full version.
- Vibe’s newest dispensary, located in Ukiah, CA, opens to the public (March 10, 2022)
The Ukiah store’s hours of operation are 9 a.m. to 9 p.m. and will offer residents and visitors to the Mendocino Valley a wide selection of top cannabis brands and products. Vibe’s Ukiah dispensary will offer a curated assortment of products including premier California brands and the company’s line of Hype Cannabis Co. marijuana products. Online ordering with same-day express pickup is available at www.vibebycalifornia.com. Mark Waldron, CEO of Vibe, said, “We are thrilled to open our doors to the Ukiah community. We look forward to providing our customers with the largest selection of premium cannabis products and a wonderful retail experience. Read the full version.
Later highlight
- Vibe’s Obtains State Approval for Greenhouse License in Monterey County California (May 26, 2022)
Vibe Growth Corp.’s greenhouse development site, located in Monterey County, has been approved for a commercial cannabis cultivation license by the California Department of Cannabis Control (DCC). Vibe’s Monterey Greenhouses will serve as the company’s flagship grow facility in California. The company has begun its 70,000 square foot Phase 1, with the potential to develop an additional 188,000 square feet in future Phases 2 and 3. Read the full version.
About Vibe Growth Corporation
Vibe Growth Corporation and its cannabis retail brand, Vibe By California, is a vertically integrated, trusted cannabis company with retail dispensaries; cultivation of cannabis in greenhouses; high-end indoor cultivation; commercial distribution of cannabis; brand sales and marketing; e-commerce platform; home delivery; and Hype Cannabis Co. and Vibe CBD (cannabidiol) marijuana products. Vibe is focused on maximizing shareholder value by accelerating organic growth, opportunistic acquisitions, distressed workouts and new licensing applications. The company operates retail and e-commerce under its iconic Vibe By California brand.
To learn more about Vibe, visit: www.vibebycalifornia.com.
Forward-looking information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “anticipate”, “could”, “intend”, “expect”, “believe”, “will fly”, “projected”, “estimated” and expressions and similar statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current beliefs or assumptions as to the outcome and timing of such future events, and may be affected by due to general economic conditions or the ongoing COVID-19 pandemic. Actual future results may differ materially.
The forward-looking information contained in this press release speaks as of the date hereof. The parties undertake 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 securities laws. Due to the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. The risk factors relating to the Company are described in the Company’s management report, a copy of which is available under the Company’s profile on SEDAR.
This press release incorporates market and industry data that has been obtained from third-party sources, including industry publications. The Company believes that industry data is accurate and that its estimates and assumptions are reasonable. However, there is no assurance as to the accuracy or completeness of this data. Third-party sources generally state that the information they contain has been obtained from sources believed to be reliable, but there is no guarantee as to the accuracy or completeness of the information included. Although the data is believed to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this press release or verified the underlying economic assumptions on which these sources are based.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “United States Securities Act”) or any state securities laws. securities and may not be offered or sold in the United States or to United States persons unless registered under United States securities law and applicable state securities laws or an exemption from such registration is available . Not for distribution to US Newswire services or broadcast in the United States. Failure to comply with this restriction may constitute a violation of United States securities laws.
Unlike Canada, where federal legislation uniformly governs the cultivation, distribution, sale and possession of medical cannabis under the (federal) Cannabis Act, readers are cautioned that in the United States, cannabis is largely regulated at the state level. To Vibe Growth Corporation’s knowledge, to date there are a total of 35 states, plus the District of Columbia, that have legalized cannabis in one form or another. Notwithstanding the permissive regulatory environment for medical cannabis at the state level, cannabis continues to be classified as a controlled substance under the Controlled Substances Act in the United States and, as such, practices or activities related to cannabis, including without limitation the manufacture, importation, possession, use, or distribution of cannabis is illegal under United States federal law. Strict compliance with state cannabis laws will not relieve Vibe Growth Corporation of liability under United States federal law, nor will it provide a defense to any federal proceeding that may be brought against Vibe Growth Corporation. Any such proceedings brought against Vibe Growth Corporation could adversely affect its business and financial performance.
Company details
Bill Mitoulas
Investor Relations
Telephone: +1 416.479.9547
Email: ir@vibebycalifornia.com
Website: www.vibebycalifornia.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125954
