Rocky Mountain Liquor Inc V.RUM

Alcanna business update - this Q likely to be good

[jcorobow]

As a result of the ongoing coronavirus (“COVID-19”) pandemic and the significant uncertainty that the pandemic is causing for businesses and investors, the Company is providing the following business and financial update in advance of the release of our financial results for the third quarter of 2020, which is tentatively planned for November 13, 2020.

Alcanna’s liquor stores in all regions continued to register sales and margins significantly higher compared to the prior year. The Company anticipates that same-store liquor sales for the three months ended September 30, 2020 will be approximately 15% higher than the prior year and total liquor gross margin as a percentage of sales will be consistent or slightly higher than those reported by the Company for the three months ended June 30, 2020. The Company believes this was primarily a result of shifting customer consumption habits due to more people dining and entertaining at home and continuing to stay away from on-premise liquor establishments (restaurants, bars, lounges, sports venues, etc.). The Company further believes these new consumer behaviour patterns have become entrenched in people’s lifestyle choices and expects consumer behaviour to continue in this manner for as long as COVID-19 remains a threat to the health of Canadians.