(TSXV) SNYB

Shiny Health & Wellness Files Second Quarter Fiscal 2024 

Turbo Holdings Partnership Closes

Progress Towards Building A Strong Canadian Brand

TORONTO: September 29, 2023 – Shiny Health & Wellness Corp. (the “Company”) (TSXV: SNYB) is pleased torelease its second quarter fiscal year 2024 financial results for the three months ended July 31, 2023 (the “second quarter”)and announce the closing of the Turbo Holdings partnership. The full results are available on https://www.sedarplus.ca

Shiny Outlook

“We would like to welcome Team Turbo, Lloyd, Jarred, Luis and Serge to the ShinyBud Family, increasing ourlicensees to 16 with 3 more signees on the way. It has been a slower than usual quarter for us; strategically shifting our corporate offices to Kitchener and focusing on acquisition targets that mesh with our current corporate stores, all whilefielding inquiries for new licensees from current smaller stores looking to join our partner program and new applicants. Weare still building after our first year and a half experiencing typical growing pains. We are very proud to have over 43,000loyalists increasing each month. We appreciate all the support of our shareholders and customers.” Said Michael Nadeau, CEO.

Overall Performance Q2

  • Sales decreased during the period ending July 31, 2023 from the retail operations and data program drivenprimarily by the reduction of the Company’s cannabis retail store count from 31 to 26 stores; closing underperformingstores with higher than usual monthly rental payments.
  • Shiny Health’s overall results for the three months period ended July 31, 2023 show a net comprehensive loss of $2.1million based on sales of $6.2 million and a gross profit of $2.1 million, operating expenses of $3.1 million, other expenses of $1.1 million, and other comprehensive gain of $0.04 million. Shiny Health’s overall results for the six months periodended July 31, 2023 show a net comprehensive loss of $2.8 million based on sales of $12.6 million, gross profit of $4.5million, operating expenses of $6.2 million and other expenses of $1.4 million, and other comprehensive gain of $0.3 million.
  • Salaries and benefits expense decreased by 18.0% for the three months period ended July 31, 2023 compared to thesame period in 2022. The large decrease in salaries this quarter was due mainly to the significant reduction of theCompany corporate and management head count and the reduction of the share-based compensation. These positive cost cutting initiatives will enable the Company to refocus cash from asset sales and equity financingdirectly to the dispensaries’ operations’ level and assist the Company in building a stronger cannabis brand.
  • The sale of 4 corporate stores (2 of which transferred to licensee status) during this quarter were for cashproceeds for debt repayment, whereas potential acquisitions are being contemplated as a combination of cash and the Company’s equity securities. As the sector consolidation continues in Canada, the Company isactively looking at potential retail store chains and single store acquisitions to replace these stores to add to thecorporate store footprint. The Company is reviewing opportunities beyond just Ontario to other provinces, as well as hopes of expansion to the USA and Europe. Management does not expect to develop brand new Greenfield locations, because the opportunities to acquire revenue producing established stores is abundant and the risk and cost factors much less for the Company.
  • The Company executed 19-trademark license agreements with 16 currently operating and 3 expected to beoperating within the next 3 months.

Turbo Partnership Closing Update

The Company is proud to announce the closing today of the previously announced Asset Purchase Agreement of May29th 2023 with an affiliate of Turbo Holdings Canada Inc. combined with a NEW Trademark License Agreement for the sale of two of Shiny Health’s retail locations for an estimated total purchase price of $800,000. Under the Trademark License Agreement, the affiliate of Turbo Holdings will be granted the right to operate the stores under the “ShinyBud” trademark. Turbo Holdings has received their Alcohol Gaming Commission of Ontario (“AGCO”) approvals and the adult use dispensaries are open for business. The Company has applied a portion of the proceeds to debt repayment.

 Forward-Looking Information 

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “intends”, or “believes”, or variations (including negative and grammatical variations) of such words and phrases or state that certain acts, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. 

These statements are based upon assumptions that are subject to significant risks and uncertainties, including risks regarding the cannabis industry, commodity prices, market conditions, general economic factors, management’s ability to manage and to operate the business, and explore and develop the projects, and the equity markets generally. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although the Company believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, the Company disclaims any intention and assume no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise. 

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.

About Shiny Health & Wellness: 

Shiny Health & Wellness Corp. is on a mission to help people never settle, live fully by being a trusted source for health and wellness solutions and services. The Company operates ShinyBud Cannabis Co., a well-established brand of adult-use dispensaries in Ontario strategically located in markets less saturated with cannabis retailers. Shiny Health trades on the TSX Venture Exchange (TSXV) under the ticker symbol SNYB. For more information, please visit www.shinyhealthandwellness.com. 

Contact Information:

Meris Kott, CEO

Investor Relations:

Phone: (888) 833-1260

Email: ir@snbycorp.com