Progress Towards Building A Strong Canadian Brand
TORONTO, Dec. 28, 2023 – Shiny Health & Wellness Corp. (the “Company”) (TSXV: SNYB) is pleased to release its third quarter fiscal year 2024 financial results for the three months ended October 31, 2023 (the “third quarter”) The full results are available on https://www.sedarplus.ca/landingpage/
Shiny Outlook
“The Company is systematically building a strong brand presence in Ontario. We are excited to complete the Stash & Co. acquisition and add 10 more stores and another well-recognized brand. We added Jonathan Hemi, a successful GTA business executive with global consumer brand experience to our board, and I was recently chosen as CEO to lead the team forward. I could not be prouder to accelerate this Company to the next stage of development. We are focused on becoming a dark horse in the consolidation of the Canadian cannabis sector. Don’t Settle, Live Fully. Be Safe for the New Year and Stay Shiny! ” Said Meris Kott, CEO.
Overall Performance Q3
- Consistent with trends observed in the Ontario cannabis retail market, the Company’s revenues decreased during the three and nine months ended October 31, 2023. Revenues were also reduced as a result of deliberate moves by management to close certain non-performing adult-use cannabis dispensaries and sell some of the larger footprint stores.
- Going forward, key areas of focus for the Company’s cannabis line of business include trying to enhance EBITDA to achieve profitable operations, by tailoring competitive positioning within each community where it operates, and optimizing network capital and real estate utilization.
- The overall results for the three months period ended October 31, 2023 show a net comprehensive loss of $5.96 million based on sales of $4.28 million, gross profit of $1.46 million, operating expenses of $2.24 million, other expenses of $5.21 million, and other comprehensive gains of $0.03 million.
- Salaries and benefits expense decreased by 46.1% for the nine-month period ending in Q3. The large decrease in salaries this quarter was due mainly to the significant reduction of the Company 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 financings directly to dispensary operations’ level and assist the Company in building a stronger cannabis brand.
- The Company executed 3 additional trademark license agreements, with 19 currently operating and 2 more expected to be operating within the next 3 months.