CALGARY, Alberta, May 24, 2022 — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDF) (“Sugarbud” or the “Company“), a leading Canadian Craft Cannabis producer and distributor is pleased to announce certain financial and operating results for the three months ended March 31, 2022. The Company anticipates announcing its first quarter 2022 financial statements and management’s discussion and analysis after-market on Monday, May 30, 2022.
Q1 2022 Highlights
The Company reaffirms certain preliminary unaudited financial and operating results for Q1 2022. The following are unaudited highlights, and all numbers are approximate.
- Sequential Revenue Growth | Consistent with previous guidance the Company expects to record gross revenue of between $925,000-$950,000 in Q1 2022, representing a 25% sequential quarter over quarter increase vs Q4, 2021 and a 37% year over year increase vs Q1 2021.
- Record Grams Sold | The Company expects to record shipments of between 150,000 – 160,000 grams of dried cannabis in Q1 2022, representing a sequential increase of over 10% vs. Q4 2021 and a year over year increase of over 90% vs Q1 2021.
- Strong Quarterly Gross Profit | Despite continued industry-wide price compression, Sugarbud continues to gain leverage on gross margin through a very disciplined approach to product pricing, internal cost control and operating efficiency.
“Hand-Crafted Cannabis for a New Era”
Sugarbud is a consumer-driven craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
The Sugarbud Craft Cannabis Collection offers consumers “Hand-Crafted Cannabis for a New Era”. The Company is proudly Albertan and is proud to share Western Canada’s long tradition of exceptional craft cannabis with the most discerning of enthusiasts. Sugarbud strives to define the intersection of product craftsmanship, quality, and value for consumers in the Canadian craft cannabis space.
Sugarbud Craft Cannabis products are currently available to adult recreational consumers in the Yukon Territory, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and nationally to registered medical patients through MendoCannabis.ca.
We Take Pride.
We Take Our Time.
Experience The Difference.
Investor Relations Contact
Chief Financial Officer
Sugarbud Craft Growers Corp.
Tel: (778) 388-8700
Unaudited Financial Information. Certain financial and operating results included in this press release, including shipping volumes, growth and revenue, are based on unaudited estimated results. These estimated results are subject to change upon completion of the Company’s unaudited financial statements for the three months ended March 31, 2022, and changes could be material. Sugarbud anticipates filing its unaudited financial statements and related management’s discussion and analysis for the three months ended March 31, 2022 on or near May 30, 2022.
Forward Looking and Cautionary Statements This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud’s business strategy, objectives, strength and focus; Sugarbud’s assessment of future plans, operations and cannabis cultivation and processing, including sales, marketing and distribution opportunities; anticipated operational and financial results for Q1 2022 including, but not limited to, gross revenues, shipping volumes, and gross profit; product quality; the development, production, sale and distribution of Sugarbud’s Craft Cannabis Collection, including new product lines and the properties, characteristics and launch timing thereof; future growth; and customer satisfaction. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected; ability to ship cannabis products may be lower than expected; demand for Sugarbud’s products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus, and variant strains of the virus, and its effect on the broader global economy may continue to have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to Sugarbud’s most recent annual information form and management’s discussion and analysis for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud’s profile on www.sedar.com. Except as required by applicable laws, Sugarbud does not undertake any obligation to publicly update or revise any forward-looking statements.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about Sugarbud’s prospective results of operations, shipping volumes, and revenues, all of 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 Sugarbud’s future business operations. Sugarbud and its management believe that FOFI has been prepared on a reasonable basis, reflecting managements best estimates and judgments, and represents, to the best of management’s knowledge and opinion, the Company’s expected course of action. However, because this information Is highly subjective, it should not be relied on as necessarily indicative of future results. Sugarbud disclaims any intention or obligation to revise or update 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 FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
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