TORONTO – Shiny Health & Wellness Corp. (TSXV: SNYB) is pleased to release its third quarter fiscal year 2024 financial results for the three months ended October 31, 2023. The full results are available on 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.
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 recently broadened its retail growth strategy beyond adult-use cannabis by establishing mīhī Health & Wellness, a new line of business focused on building a network of community pharmacies, with its first pharmacy in Cornwall, Ontario. Striving to provide a more diverse and accessible cannabis experience for adult consumers, the Company also operates ShinyBud Cannabis Co., a well-established brand 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.
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.
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.
