In This Article:
VANCOUVER, British Columbia, Nov. 12, 2024 (GLOBE NEWSWIRE) -- LEEF Brands, Inc. ("LEEF" or the "Company") (CSE: LEEF, OTC: LEEEF), a premier vertical cannabis operator, today announced its financial results for the three and nine months ended September 30, 2024. Unless otherwise noted, all currency references are in United States dollars.
Financial Highlights:
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Net sales of $6.8M for the three months ended September 30, 2024 and $22.6M for the nine months ended September 30, 2024.
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Gross Profit of $1.5M for the three months ended September 30, 2024 and $7.4M for the nine months ended September 30, 2024.
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Gross Margin of 22% for the three months ended September 30, 2024 and 33% for the nine months ended September 30, 2024.
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Unit Sales increase of 79% for the three months ended September 30, 2024.
Management Commentary:
“I’m proud of our team for driving positive momentum this quarter, making substantial progress on key initiatives, innovations and infrastructure upgrades including the completion of Phase 1 construction at Salisbury Canyon Ranch,” stated Micah Anderson, Chief Executive Officer. “This 1,900-acre ranch, with a 187-acre cultivation permit, positions us for our first planting in spring 2025. Additionally, we’ve invested significantly in our extraction technology, increasing our overall capacity by 32%, which will enable larger product output in the coming year. We’re optimistic about the opportunities ahead and excited about the strong foundation we’re building for 2025.”
Kevin Wilson, Chief Financial Officer added “We continue to focus on our long-term financial health and strategic growth, which includes the phase 1 completion of Salisbury Canyon Ranch, as well as innovating in how we manage assets and payment systems. This quarter, the company acquired Bitcoin cryptocurrency in a business-to-business transaction which marks the beginning of a larger strategy of integrating LEEF Brands into the Bitcoin Ecosystem. This is a milestone that reflects our commitment to forward-looking financial strategies. Despite the industry challenges, our focus remains on increasing efficiency and positioning LEEF for success as we move forward.”
Q2 2024 Financial Results Discussion:
Investors are invited to access the financial results and analyses on the Company's investor relations website (https://www.leefbrands.com/investors) and SEDAR+ (www.sedarplus.ca).
| Unaudited Q2 2024 Financial and Operation Metrics: | |||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
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| September 30, 2024 |
| September 30, 2023 |
| September 30, 2024 |
| September 30, 2023 | ||||||||
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| (Unaudited) |
| (Unaudited) |
| (Unaudited) |
| (Unaudited) | ||||||||
| Net Loss (IFRS) | $ | (3,186,643 | ) |
| $ | (1,988,723 | ) |
| $ | (8,590,853 | ) |
| $ | (23,767,032 | ) |
| Depreciation and amortization |
| 480,203 |
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| 462,400 |
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| 1,352,606 |
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| 1,395,303 |
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| Interest expense |
| 357,511 |
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| 932,785 |
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| 3,310,710 |
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| 2,863,757 |
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| Income tax expense |
| 442,067 |
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| 555,338 |
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| 2,203,376 |
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| 2,340,699 |
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| EBITDA (non-IFRS) |
| (1,906,862 | ) |
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| (38,200 | ) |
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| (1,724,161 | ) |
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| (17,167,273 | ) |
| Adjustments: |
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| Share-based compensation |
| 121,558 |
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| 200,251 |
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| 1,981,739 |
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| 1,183,393 |
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| Change in fair value of contingent consideration |
| - |
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| 21,129 |
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| - |
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| (114,871 | ) |
| Gain on extinguishment of debt |
| - |
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| - |
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| (284,660 | ) |
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| - |
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| Loss on impairment |
| - |
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| 1,146 |
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| - |
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| 17,409,624 |
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| Change in fair value of derivative liabilities |
| - |
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| (12,727 | ) |
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| - |
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| (1,079,625 | ) |
| Non recurring operating costs |
| - |
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| 52,896 |
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| - |
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| 1,012,177 |
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| Adjusted EBITDA (non-IFRS) | $ | (1,785,303 | ) |
| $ | 224,495 |
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| $ | (27,082 | ) |
| $ | 1,243,425 |
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About LEEF Brands Inc.
LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state's most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in California. For more information, visit www.LeefBrands.com.