Ayurcann Holdings Corp. (
CSE:
AYUR,
OTCQB: AYURF,
FSE:
3ZQ0) (“Ayurcann” or the “Company”), a leading Canadian
cannabis extraction company specializing in the processing and
manufacturing of various derivative cannabis 2.0 and 3.0 products
in the recreational market, is pleased to announce its financial
and operational results for the three-months ended September 30,
2023, the highlights of which are included in this news release.
All figures are reported in Canadian dollars. The Company’s full
set of consolidated financial statements for the three-months ended
September 30, 2023 and accompanying management’s discussion and
analysis can be accessed by visiting the Company’s website at
www.ayurcann.com and its profile page on SEDAR+ at
www.sedarplus.ca.
FINANCIAL HIGHLIGHTS FOR THE THREE-MONTHS
ENDED SEPTEMBER 30, 2023
- Gross revenue
increased to $11,790,915 for the period (compared to $3,358,213 for
the same period last year), representing an
increase of 249%
- Gross margin,
calculated based on net revenue, was 35%
- Cash on hand at
the end of the period totalled $1,490,032 (compared to $1,016,130
compared to last year)
Corporate Update
Canadian opportunities
Ayurcann is focused on maximizing the margins
and market share from every product we make, and we believe this
strong market share capture is being driven by the reputation of
our brands. By working with high-quality products and new
innovations that complement our current production. We continue to
look for new opportunities to increase our revenues with the launch
of new products under our existing brands We intend to deliver this
growth without significant overhead costs to our business.
Ayurcann is pleased to announce that, during its
first quarter of fiscal 2024, it has secured 12 new stock keeping
units (“SKUs”) in the vape, pre-roll and flower
categories in Ontario and an additional 12 SKUs are anticipated to
come to market in its second fiscal quarter. The Company’s ability
to consistently produce innovative and high-quality products has
been a successful pathway to the growth it has been able to
achieve.
Increased efficiency in our process and
partnerships
We are creating efficiencies in our systems and
supply chain and are able to rely on internal manufacturing
capacity and processes while increasing strong relationships with
key partners to reduce costs. As part of this process, Ayurcann has
begun implementing new systems that will improve efficiency of the
existing business and ready Ayurcann for further growth in specific
business verticals.
Ayurcann is pleased to announce its entry into
the infused pre-roll category. Market studies have found that
pre-rolls are the fastest-growing product segment in the industry,
growing 12% year-over-year (“YoY”) in the United
States and 38% YoY in Canada.1
More specifically, in 2023 infused pre-rolls
have become the largest pre-roll segment with the data suggesting
the average cannabis consumer is looking for fast-acting and
high-potency products, with the top three product segments being
mixed strain pre-rolls, disposable vape pens, and infused
pre-roll.2
Pre-rolls are quickly becoming the favorite
consumer product as the United States saw 22% YoY growth in infused
pre-rolls, with Canada seeing an astounding 1,426% YoY growth.3
Ayurcann plans to introduce 4 infused pre-rolls
SKUs in the second fiscal quarter and an additional 4 infused
pre-roll SKUs in the third fiscal quarter.
Build a team and brands focused on
delivering results
With the tightness of the labour market, we are
very pleased with the almost incredible retention of our team, both
internal and external. We believe that people make a company and in
order to deliver the best product to market, our team is engaged
and proud to work for and represent Ayurcann in the industry. We
have been setting clear goals and objectives that are directly
linked to the success of the Company and are rewarding and
recognizing the hard work and accomplishments of our team.
The Fuego brand is continuing to hold its
number one share position in Ontario in the 2x1G pre-rolls segment,
with an approximate 40% market share4.
As a company Ayurcann’s branded vape products
under the Fuego and Xplor band, are ranked as top 5 offerings
across the country with XPLOR consistently in the top 3 in Ontario5
- High potency and quality is what we have become known for and
with new innovation and offerings we intend to sustain and grow our
market share across the country.
Ayurcann has launched several new offerings to
bolster the Fuego portfolio in the first 6 months of the year, and
we are excited about the growth and reception we have been
experiencing in the market. Winning in the categories we choose to
compete in is a top priority, and we will continue to enhance our
product development capabilities to differentiate our products and
to win with retailers and consumers.
Future strategies and moving
forward.
Ayurcann believes that our quality, brands, and
product offerings will drive growth. Price compression has affected
all categories in the industry and price compression is being
driven by the financial issues faced by many competitors. As
companies leave the sector, the demand for products is still
maintained in the marketplace. As a business focused on the quality
and value, we have seen the market growth and demand for our
products being translated to a strong position for Ayurcann.
“We feel that the awareness of our brands in the
market and the quality and flavour profile we are introducing will
enable Ayurcann to gain market share quickly. Offering value and
potency in a segment that is primed to grow even more”. Said Igal
Sudman, Chief Executive Officer.
For further information, please contact:Igal
Sudman, Chairman and Chief Executive OfficerAyurcann Holdings
Corp.Tel: 905-492-3322Email: info@ayurcann.com
Investor Relations:
Email: ir@ayurcann.com
About Ayurcann:
Ayurcann is a leading post-harvest solution
provider with a focus on providing and creating custom processes
and pharma grade products for the adult use and medical cannabis
industry in Canada.
For more information about Ayurcann, please
visit www.ayurcann.com and its profile page on SEDAR+ at
www.sedarplus.ca.
Neither the Canadian Securities Exchange nor its
Regulation Services Provider have reviewed or accept responsibility
for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of applicable securities laws. All
statements contained herein that are not clearly historical in
nature may constitute forward-looking statements. Generally, such
forward-looking information or forward-looking statements can be
identified by the use of forward-looking terminology such as
“plans”, “strategy”, “expects” or “does not expect”, “intends”,
“continues”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or may contain statements
that certain actions, events or results “will be taken”, “will
launch” or “will be launching”, “will include”, “will allow”, “will
be made” “will continue”, “will occur” or “will be achieved”. The
forward-looking information and forward-looking statements
contained herein include, but are not limited to, statements
regarding: the Company’s plans to produce various derivative
cannabis products; the Company’s focus on custom processes and
pharma grade products for the adult use and medical cannabis
industry in Canada; the Company’s focus on maximizing its margins
and market share; the Company continued search for new
opportunities to increase its revenues, through launches of new
products under its existing brands and without significant
increases to overhead costs; the Company’s securing of the stated
SKUs and number of anticipated SKUs launches under the provided
timelines, including the plans to introduce 4 infused pre-rolls
SKUs in the second fiscal quarter and an additional 4 infused
pre-roll SKUs in the third fiscal quarter; the Company’s plans to
reduce cost through increased efficiency in its internal processes
and partnerships; conclusions based on the quoted market studies,
including, infused pre-rolls becoming the favorite consumer
product, pre-rolls being the fastest-growing product segment in the
industry, and that the average cannabis consumer is looking for
fast-acting and high-potency pre-roll products; the Company’s
belief that people make a good company and how the Company intends
to reward and retain its personnel; the Company’s stated plans to
sustain and grow its market share, including, the increasing of the
awareness the Company’s brands, the quality and flavour profile of
its products, offering value and potency; and the Company’s plans
to enhance its product development capabilities by differentiating
its products with its competitors.
Forward-looking information in this news release
are based on certain assumptions and expected future events,
namely: the Company has the ability to produce various derivative
cannabis products; the Company will focus on custom processes and
pharma grade products for the adult use and medical cannabis
industry in Canada; the Company will focus on maximizing its
margins and market share; the Company will continue its search for
new opportunities to increase its revenues; the Company has the
ability to carry out its anticipated SKUs launches under the
provided timelines; the Company has the ability to reduce cost
through increased efficiency in its internal processes and
partnerships; the accuracy of the conclusions based on the quoted
market studies; the Company has the ability to reward and retain
its personnel; the Company has the ability to carry out its stated
plans to sustain and grow its market share; and the Company has the
ability to enhance its product development capabilities by
differentiating its products with its competitors.
These statements involve known and unknown
risks, uncertainties and other factors, which may cause actual
results, performance or achievements to differ materially from
those expressed or implied by such statements, including but not
limited to: the Company’s inability to produce various derivative
cannabis products; the Company’s inability to focus on custom
processes and pharma grade products for the adult use and medical
cannabis industry in Canada; the Company’s inability to focus on
maximizing its margins and market share; the Company’s inability to
continue its search for new opportunities to increase its revenues;
the Company’s inability to carry out its anticipated SKUs launches
under the provided timelines; the Company’s inability to reduce
cost through increased efficiency in its internal processes and
partnerships; the inaccuracy of the conclusions based on the quoted
market studies; the Company’s inability to reward and retain its
personnel; the Company’s inability to carry out its stated plans to
sustain and grow its market share; and the Company’s inability to
enhance its product development capabilities by differentiating its
products with its competitors.
Readers are cautioned that the foregoing list is
not exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the plans, intentions, or expectations upon which
they are placed will occur. 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
news release are expressly qualified by this cautionary statement
and reflect the Company’s expectations as of the date hereof and
are subject to change thereafter. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, estimates or opinions,
future events, or results or otherwise or to explain any material
difference between subsequent actual events and such
forward-looking information, except as required by applicable
law.
1
https://cannatechtoday.com/why-infused-pre-rolls-are-dominating-the-cannabis-market/
2
https://cannatechtoday.com/why-infused-pre-rolls-are-dominating-the-cannabis-market/
3
https://cannatechtoday.com/why-infused-pre-rolls-are-dominating-the-cannabis-market/
4 Based on reporting by Hyfyre IQ™ as of Oct 30, 2023. 5 Based on
reporting by Hyfyre IQ™ as of Oct 30, 2023.
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