TORONTO –
Shiny Health & Wellness Corp. (“Shiny Health” or the “Company”) (TSXV: SNYB) today reported its financial and operating results for the twelve months ended January 31, 2023 (“Fiscal 2023”). A complete set of audited financial statements and Management’s Discussion and Analysis has been filed at www.sedar.com.
Shiny Health Outlook
“I am pleased to present the financial results for our first year as a public company. The Ontario Cannabis market has had its challenges during 2022/2023 with increased competition and margin pressure but we have successfully maintained our margins by focusing on our customer specific needs and our employee training. In 2022 we also expanded our retail footprint by acquiring our first pharmacy as we look to be a Health and Wellness resource to our customers,” stated Michael Nadeau, CEO.
Fiscal Year 2023 Financial Highlights
The Company experienced strong organic growth in Fiscal 2023 increasing store revenues to $29.6M or a 43% increase from the previous year. Sales were driven by the expanded store portfolio plus the ShinyBuddy data program which contributed $1.6 million in sales from its partnerships with licensed cannabis producers and brands; whereby it provides detailed insights into store sales trends. The ShinyBuddy Club Customer Loyalty Program grew to over 35,000 members.
Shiny Health’s gross profit increased 43% to $10.9 million in Fiscal 2023. The Company proudly sustained a strong company-wide gross profit margin of 37.0%.
Total general and administrative expenses increased to $15.8 million in Fiscal 2023 primarily related to the level of activity in expanding the retail store network and public company costs and general start-up expenses in the Company’s first year as a public company.
Net comprehensive loss of $12.8 million for Fiscal 2023 was comprised of $7.5 million of impairment charges and $1.7 million of loss on extinguishment of a loan.
All dollar figures are quoted in Canadian dollars.
Corporate Update
Further to the Company’s press release dated May 31, 2023 announcing a Cease Trade Order (“CTO”) related to the failure to file financial statements, Shiny Health is pleased it has now filed its audited annual consolidated financial statements for Fiscal 2023 and related management’s discussion and analysis, and officer certifications, as required by Parts 4 and 5 of National Instrument 51-102 Continuous Disclosure Obligations and it is anticipated that the revocation of the CTO will occur within a few days. The Company also plans to announce a Corporate Update following the reinstatement of trading.
Consolidated Financial Statements
For further information, refer to Shiny Health’s consolidated financial statements and management’s discussion & analysis for the financial years ended January 31, 2023 and 2022, which are being made available on the Company’s website at www.shinyhealthandwellness.com and on SEDAR under the Company’s issuer profile at www.sedar.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.
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. The Company’s board of directors and management team hold extensive retail operating experience, a key competitive differentiator in leading its growth strategy. Shiny Health trades on the TSX Venture Exchange (TSXV) under the ticker symbol SNYB. For more information, please visit www.shinyhealthandwellness.com.
Cautionary Statement Regarding Forward-Looking Information
All statements other than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “seek”, “plan”, “aim”, “budget”, “forecast”, “target”, “estimate”, “objective”, “propose”, “predict”, “potential”, “project”, “continue”, “pursue”, “may”, “will”, “might”, “should”, “could” or similar words suggesting future outcomes or events or statements regarding an outlook.
Without limiting the foregoing, this news release contains forward-looking statements pertaining to: Shiny Health’s growth strategy and potential in respect of both its retail cannabis business and expansion into the pharmacy sector.
Forward-looking statements, and the underlying assumptions, opinions, estimates, plans, beliefs and expectations on which they are based, are inherently uncertain as they depend on future conditions, developments and courses of action that may or not occur or come to be. There can be no assurance that the underlying assumptions, opinions, estimates, plans, beliefs and expectations will prove to be correct and, accordingly, no assurance that the future performance, events, outcomes or circumstances expressed or implied in the forward-looking statements herein will occur or be realized. Actual results will differ, and the differences may be material and adverse to the Company.
In addition to the other factors and assumptions that may be identified herein, material factors and assumptions used to develop the forward-looking statements contained in this news release include, among other things, assumptions, opinions, estimates, plans, beliefs and expectations regarding: the effectiveness of our retail cannabis and pharmacy strategy; our ability to identify and consummate accretive acquisitions; expand our store network within budgeted costs and timelines, drive same-store sales growth, improve margins and generate new revenue streams; our ability to obtain additional licenses, authorizations and regulatory approvals (including any required approvals of the TSX Venture Exchange) as and when required to fit our growth and business plan; the size of the cannabis retail market and estimated portion currently unserved, and the migration of customers from the illicit market to legal market; our ability to capture additional market share; our ability to attract franchisees to the ShinyBud brand and model, and the terms of franchise arrangements; the number, type and locations of new stores; the applicability and relevance of our experience in existing centers and locations to new centers and locations; our ability to influence our customer purchase decisions; our ability to maintain, enhance, and grow our appeal within our addressable market, and to customize products and inventory for the market that resonate with our target customer base; our ability to source product that is key to our menu offerings; our ability to leverage our landlord network and build a flexible lease portfolio; our ability to manage costs and drive operating efficiencies; our ability to retain key management and non-management personnel, and to hire, train and motivate staff; the availability of capital, and our ability to obtain any required external financing on acceptable terms; our competitive strengths and the impact of competition; the accuracy of our financial models; trends in the retail cannabis and pharmacy sectors; the regulatory framework applicable to the retail cannabis and pharmacy industries in Canada, and the direction of any changes in that framework and underlying laws; and general economic, political and social conditions affecting the retail cannabis and pharmacy businesses.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that will cause actual results to differ from those indicated, suggested or anticipated in the forward-looking statements, and the differences may be material. Readers must therefore exercise caution and not rely on forward-looking statements, which rest on assumptions, opinions, estimates, plans, beliefs and expectations as of the date made that may change and are in any event not a guarantee of future performance or a promise of any future outcomes. We believe such risks, uncertainties and other factors to include, without limitation, the following: risks associated with the retail cannabis and pharmacy industries generally; adverse changes in the general economic or market conditions, and to customer spending in the centers where we operate; unforeseen obstacles that prevent, delay or otherwise compromise the execution of our growth plan; inability to obtain additional licenses and authorizations (and other needed regulatory approvals) as and when required to fit our growth and business plan; ineffectively managing our growth; failure to secure desirable store locations; inability to secure leasehold premises for new stores on acceptable terms, risks associated with leasing retail space; adverse changes to the regulatory framework applicable to the retail cannabis and retail pharmacy industries in Canada, or to other laws and regulations affecting our business (including taxes); unanticipated diminishment of the Shiny Bud brand or any trademark protections; negative publicity for us or our business; marketing strategies that are less successful than expected; our highly competitive industry and the relative size and resources of some of our competitors; being unable to successfully open and operate new stores; profitability erosion from unexpected cost increases; slower profitability of new stores; failure to identify, recruit and contract with a sufficient number of qualified franchise partners; lack of access to capital to fund expansion, or more costly financing terms than expected; a data security breach that results in improper use or disclosure of confidential customer or employee information; risks associated with industry consolidation; loss of key management or other key personnel, or unexpected difficulty in attracting, training and/or motivating staff as necessary to execute our business plan; unexpected challenges in growing sales or connecting with our customer base; inability to meet other financial targets; any material claims made against us, which could result in litigation; insolvency risks with parties with whom we do business; increased expenses of being a public company; the forward-looking statements contained in this presentation proving to be inaccurate and incorrect despite there being a reasonable basis therefor at the time they were made; and such other risks, uncertainties and other factors as may be discussed or set out from time-to-time in Shiny Health’s public disclosure documents (including, without limitation, those risks identified in this news release) filed by the Company with applicable securities regulatory authorities in Canada and available at www.sedar.com.
The foregoing lists of material assumptions and risks, uncertainties and other factors are not exhaustive.
The forward-looking statements contained herein in this speak only as of the date of this news release. The Company disclaims any intention, obligation or undertaking to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, or to explain any difference between actual results and those indicated, suggested or anticipated in any forward looking statements, except as may be required under applicable securities laws.
All forward-looking statements contained in this news release and in any related reports or disclosures filed or issued by the Company, or made by the Company’s directors, officers and other persons authorized to speak on its behalf regarding the subject matter hereof, are expressly qualified by this cautionary statement.
