Expands MSO footprint while achieving its 11 th consecutive quarter of profitability

 Trulieve Cannabis Corp. (“Trulieve” or the “Company”) (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States today announced its results for the quarter ended September 30, 2020 . As previously disclosed, the Company is transitioning to U.S. generally accepted accounting principles (“GAAP”) and a number of its financial measures associated with third quarter results are included and presented in accordance with GAAP. All currency is expressed in U.S. dollars.


Third Quarter 2020 Financial Highlights

On an IFRS basis

  • Achieved record revenue of $136.3 million , an increase of 13% on a sequential quarter-over-quarter basis
  • Unaudited pro forma revenue, which includes our Pennsylvania acquisitions of PurePenn and Solevo and assumes the acquisitions had occurred on January 1, 2020 , would have been $154.9 million for the current quarter and $392.0 million for the nine months ended September 30th
  • Achieved adjusted EBITDA 1,2,3 of $67.5 million , or 50% of revenue, representing the 11 th quarter of consecutive growth and profitability
  • Delivered $73.7M in cash flows from operations for the nine months ended September 30, 2020 . 4
  • Maintained strong cash position with cash and cash equivalents of $193.4 million as of September 30, 2020

On a GAAP converted basis

  • Attained positive net income of $17.4 million , or $0.15 per diluted share
  • Achieved GAAP adjusted EBITDA of $65.8 million

Operational Highlights and Recent Events

  • Expanded operational footprint into Pennsylvania through acquisitions of PurePenn LLC and Solevo Wellness, which closed on November 12, 2020
  • Awarded a processor permit in West Virginia , providing a presence in six states
  • First to market with edible cannabis products for patients in Florida , providing a full suite of edibles, including gels, chocolates, cookies, and brownies
  • Opened nine stores in the third quarter, and recently achieved our 2020 goal of 68 stores nationwide

“Following an outstanding quarter, industry leading profitability, and our recent entry into two additional states in the northeast, Trulieve has never been better positioned for the future.  Our third quarter was especially memorable because we introduced the long-awaited edibles product lines to our offerings and announced our acquisitions in Pennsylvania , where we see tremendous growth potential. Just last week the Pennsylvania acquisitions closed, and we were awarded a processor license in West Virginia . We also recently achieved our 2020 goal of opening 68 stores nationwide and expect our strong growth to continue,” stated Kim Rivers , Trulieve CEO . “Going forward, we will continue to provide best-in-class customer experiences for our Trulievers while strategically expanding our operations to accelerate growth.”

2020 Quarterly Financial Highlights

Results of operations

IFRS

Quarter over Quarter

GAAP
Three
Months
Ended

IFRS
Year over Year

(Figures in millions and % change based on these figures)

Sep 30 2020

June 30 2020

% change

Sep 30 2020

2020

2019

% change

Total Revenue

$136.3

$120.8

13%

$136.3

$136.3

$70.7

93%

Revenue less production expenses and cost of goods purchased 2

$102.2

$91.1

12%

$102.2

$102.2

$44.0

132%

Revenue less production expenses and cost of goods purchased %

75%

75%

75%

75%

62%

Operating Expenses

$37.9

$33.1

15%

$39.4

$37.9

$18.0

111%

Operating Expenses %

28%

27%

29%

28%

25%

Adjusted EBITDA 1,2,3

$67.5

$60.5

12%

$65.8

$67.5

$36.9

83%

Reconciliation of Non-IFRS
Adjusted EBITDA

(Figures in millions)

IFRS

For the three months
ended September 30, 2020

GAAP

For the three months
ended September 30, 2020

Net Income (IFRS)

$4.7

$17.4

Add (Deduct) Impact of Net Effect of Change in Fair Value of Biologicals

$16.8

Grow Cost adjustment for Biological Assets & Unsold Inventory

$(0.7)

Share-Based Compensation

$0.5

$0.5

Interest Expense, Net

$6.4

$5.4

Depreciation and Amortization

$4.0

$3.3

Depreciation included in Cost of Goods Sold

$3.4

$2.5

Provision for Income Taxes

$21.6

$25.9

Other Income, Net

$10.7

$10.8

Total Adjustments

$62.8

$48.4

Adjusted EBITDA 1,2,3

$67.5

$65.8

1.

Adjusted EBITDA is a non-IFRS financial measure. See Non-IFRS Measures section of this news release.

2.

Adjusted EBITDA and Revenue less production expenses and cost of goods from third party suppliers do not include the net effect of changes in the fair value of biological assets.

3.

Please refer to “RECONCILIATIONS OF NON-IFRS FINANCIAL AND PERFORMANCE MEASURES” of the Company’s Q3 2020 MD&A for Adjusted EBITDA calculations.

4.

Second and third quarter combined cash flows from operations were $49.1 million. The Company made tax payments of $70.9 million in the third quarter, which included $45.4 million of previously deferred tax payments due to the COVID tax extension.

The Management Discussion and Analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com and on its website at https://www.trulieve.com/investors .

This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

Conference Call

The Company will host a conference call and live audio webcast on, November 17, 2020 at 8:30 A.M. Eastern time , to discuss its third quarter 2020 financial results.

All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 9836737. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until November 24, 2020 at midnight, ET. To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 9836737.

A live audio webcast of the conference call will be available at: https://produceredition.webcasts.com/starthere.jsp?ei=1387660&tp_key=770fb804fb

Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days by clicking the link above.

Non-IFRS Measures

Adjusted EBITDA is not a recognized performance measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain material non-cash items and certain other adjustments Management believes are not reflective of the Company’s ongoing ‎operations and performance‎. Adjusted EBITDA has limitations as an analytical tool as it excludes from net income as reported interest, tax, depreciation, non-cash ‎expenses, RTO expense, other income, grow cost expensed for biological assets and unsold inventory, ‎and the non-cash fair value effects of accounting for biological assets and inventories. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). See “Reconciliation of non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the quarter ended September 30, 2020 for additional information.

About Trulieve

Trulieve is a vertically integrated “seed-to-sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida . Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida , as well as directly to patients via home delivery. Trulieve also has operations in California , Massachusetts , Connecticut and Pennsylvania . Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX Best Market under the symbol TCNNF.

This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the future demand for the Company’s products, the financial performance of the Company, potential acquisitions and expansion of the Company’s operations.  Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company’s current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein, including, without limitation, the risk factors discussed in the Company’s filings on SEDAR at www.sedar.com . Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

To learn more about Trulieve, visit www.Trulieve.com .

The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

SOURCE Trulieve Cannabis Corp.

Cision View original content: http://www.newswire.ca/en/releases/archive/November2020/17/c5791.html

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce that it has received and signed a non-binding letter of intent dated November 30, 2020 with IONIC Brands Corp. (“Ionic”) for the proposed sale to Ionic of certain assets held by Lobe related to Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) (the “Transaction”). Cowlitz is one of the top five licensed cannabis producersprocessors located in Washington State.

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The Transaction is subject to several closing conditions, including but not limited to: (i) satisfactory due diligence by both Ionic and Lobe; (ii) completion of a definitive agreement with binding terms and conditions for the Transaction, including finalization of the specific Assets that will be sold and certain Cowlitz assets that may be retained by Lobe; (iii) all respective directors and officers of Lobe and Ionic entering into support agreements for the Transaction; (iv) approval by the boards of directors of both Lobe and Ionic; (v) the completion of a share consolidation by Ionic on a minimum of one new Ionic common share for every four and a half (4.5) old Ionic common shares (the “Ionic Consolidation“); (vi) the conversion of all Ionic debentures (with principal amount of approximately CAD$14.7 million) into a secured equity or a similar instrument (“Debt Conversion“); (vii) completion of a concurrent financing by Ionic for gross proceeds of at least US$2 million (the “Ionic Concurrent Financing“); (viii) Ionic having all cease trade orders issued against it lifted(2); (ix) Ionic applying to the CSE for requalification and qualifying for listing and resumption of trading(2); and (x) the receipt of all required shareholder and regulatory approvals, including the approval of the CSE. Following the closing of the Transaction, Ionic’s board of directors is expected to be comprised of five (5) members and Lobe will have the right to appoint two (2) directors to the Ionic board.

The sale price for the Assets shall be a minimum of CAD$23 million, payable through the issuance of Ionic post-consolidation common shares (being approximately 49% of Ionic’s estimated $47 million capitalization post-restructuring (after giving effect to the Ionic Consolidation and Debt Conversion)), prior to giving effect to the Ionic Concurrent Financing. Following the closing of the Transaction, it is expected that the Lobe will own approximately 49% of Ionic’s common shares, on a post-consolidation and pre-Ionic Concurrent Financing basis. Ionic is expected to have a minimum total capitalization valuation of CAD$47 million, pre-Ionic Concurrent Financing.

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Ionic is listed on the Canadian Securities Exchange(2) (the “CSE“) (CSE: IONC) and is a growing US-based cannabis company that focuses on premium cannabis products with current operations in Washington and Oregon. Ionic has completed a number of strategic synergistic acquisitions since 2019 aimed at growing revenues as a multi-state operator, and increasing their overall product lines and intellectual property portfolio. Ionic’s strategy has been focused on building a regionalized multistate operation of cannabis brands in the Pacific Northwest markets with an eye to expansion into other recreational markets and aggressive national expansion.

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“The proposed transaction with Ionic is accretive to both parties, successfully meets our M&A initiatives and keeps Lobe active in the cannabis and overall transformation psychedelic medicine space,” states Tom Baird, CEO of Lobe. “The Transaction provides Lobe with significant ownership and board presence in Ionic. With its already significant operations in Washington State and Oregon, we feel Ionic’s proposed product expansion initiatives together with the addition of the Cowlitz Assets can lead to aggressive growth.”

About Ionic Brands Corp.

Ionic is dedicated to building a regionally based multi-state consumer-focused cannabis concentrate brand portfolio with strong roots in the premium and luxury segments of vape concentrates and edibles. The cornerstone brand of the portfolio, IONIC, is the #3 vaporizer brand in Washington State and has aggressively expanded throughout the Pacific Northwest of the United States. The brand is currently operating in Washington and Oregon. Ionic’s strategy is to be the leader of the highest-value segments of the cannabis market.

About Lobe Sciences Ltd.

Lobe is a growth-oriented research, technology & services company that provides financial, management, IP and branding support to businesses. The Company operates a portfolio of companies focused on developing transformational medicines and applies refined strategies to help partner companies reach their full potential. Based in Vancouver, BC, Lobe Sciences creates value through acquisitions and development of assets, products and technologies by leveraging its scientific, engineering, branding and operational expertise supported by strong capital markets acumen.

For further information please contact:

Lobe Sciences Ltd.
Thomas Baird, CEO
info@lobesciences.com
Tel: (949) 505-5623

THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

Disclaimer for Forward Looking Statements

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this release, including statements regarding the future plans and objectives of the Company, the Company’s expectations surrounding its development of treatments and/or therapeutics for mTBI and PTSD, the proposed Transaction and terms with Ionic and estimated capitalization of Ionic and share value to Lobe, Ionic having its cease trader orders lifted and resumption for trading on the CSE, future sales and expected revenues of Cowlitz and enhancing its value to the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are risks detailed from time to time in the filings made by the Company with securities regulations. Readers are cautioned that assumptions used in the preparation of the forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including changes to the regulatory environment; and that the current Board and management may not be able to attain the Company’s corporate goals and objectives. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made only as of the date of this news release and the Company does not intend to update any of the included forward-looking statements except as expressly required by applicable Canadian securities laws.

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