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SSC's Q1 2025 guidance, together with comparisons to Q4 2024 guidance and Q1 2024 actual results, is as follows.  Actual results may differ from guidance:

SSC's projected consolidated revenue growth is attributable to the organic growth of SSC's brands Astrolab, Frootyhooty, Status, Lamplighter, Roilty, and Zest, and to SSC's acquisitions of CannMart, ANC, and Humble Grow Co. ("Humble", previously Delta 9 Bio-Tech), which was acquired on February 28, 2025, contributing one month of operating results to the Q1 2025 guidance.

Projected consolidated Q1 2025 net income and comprehensive income is approximately $9.4 million including an anticipated $7.0 million bargain purchase gain on acquisition of Humble which closed on February 28, 2025 and which will be reported in the financial results for the period ended March 31, 2025. The expected bargain purchase gain is anticipated and actual results may differ from this estimate. The anticipated bargain purchase gain has been excluded from the determination of adjusted EBITDA and NNI of $3.3 million and $3.0 million, respectively. See Non-IFRS Financial Measures below.

SSC's streak of positive adjusted EBITDA and NNI is expected to extend to eleven and nine consecutive financial quarters respectively.

Continued Rationalization and Cost Savings

The guidance and reported results above include the consolidated operations of SSC and its wholly owned subsidiaries Massive Hash Factory Ltd., CannMart Inc. (acquired on September 12, 2024), and ANC (acquired on October 18, 2024, effective October 1, 2024), and Humble (acquired on February 28, 2025, adding 1 month of operating result in the Q1 2025 Guidance).  SSC is continuing to capture synergies in respect of these acquisitions to further reduce costs.

Past Guidance Versus Actuals

SSC exceeded Q2 2024 and Q3 2024 guidance as reflected in the comparison of SSC's annualized guidance to reported amounts for the periods below (Q4, 2024 actual results will be publicly available on or before April 30, 2025):

About Simply Solventless Concentrates Ltd.

SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC's mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers. For more information regarding SSC, please see www.simplysolventless.ca.

Notice on Forward Looking Information

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "will", "estimates", "believes", "intends", "expects", "projected", "approximately" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning SSC's expected results for Q1 2025, continued organic revenue growth, the continued synergies expected from integrating CannMart Inc., ANC, and Humble into SSC's operations, capitalizing on SSC's business plan and SSC's expected growth, results of operations and performance. SSC cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of SSC, including expectations and assumptions concerning SSC, the timing and market acceptance of products, competition in SSC's markets, SSC's reliance on customers, fluctuations in interest rates, SSC's ability to maintain good relations with its customers, employees  and other stakeholders, changes in law or regulations, SSC's ability to protect its intellectual property, as well as other risks and uncertainties, including those described in SSC's filings available on SEDAR+ at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any 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 SSC. The reader is cautioned not to place undue reliance on any forward-looking statements. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date of this press release, and SSC does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

Future Oriented Financial Information

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about gross revenue, adjusted EBITDA and NNI of SSC, which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about SSC's future business operations. SSC and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, SSC's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. SSC disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Differences in the timing of capital expenditures or revenues and variances in production estimates can have a significant impact on the key performance measures included in SSC's guidance. SSC's actual results may differ materially from these estimates.

Non-IFRS Financial Measures

This press release includes references to "adjusted EBITDA" and "normalized net income", which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA is calculated as income before interest, taxes, depreciation and amortization expenses. Adjusted EBITDA is considered a useful measure by management to understand profitability excluding the effects of capital structure, taxation and depreciation, but may not be appropriate for other purposes. Adjusted EBITDA is not defined under IFRS and therefore should not be considered an alternative to, or more meaningful than net income (loss) and comprehensive income (loss).

NNI is calculated as net income less any gain settlement or disposal, plus any restructuring costs and the share compensation expense. NNI is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of certain non-operating items.

See the "Operations" section in SSC's management's discussion & analysis for the periods Q1 2024, Q2 2024 and Q3 2024, available on SEDAR+ at www.sedarplus.ca, for a quantitative reconciliation of net income to adjusted EBITDA for such periods, which information is incorporated by reference in this press release and also shown below inclusive of a reconciliation of EBITDA, adjusted EBITDA and NNI for the most recent Q1, 2025 guidance which is derived from an estimate of operating results for the three month period ended March 31, 2025, which will be filed publicly on or before May 31, 2025, and until then subject to change.

Reconciliation of Non-GAAP Measures

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither 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.

SOURCE Simply Solventless Concentrates Ltd.

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