Toronto, Ontario, Nov. 28, 2024 (GLOBE NEWSWIRE) -- Ayurcann Holdings Corp. (CSE: AYUR, OTCQB: AYURF) (“Ayurcann” or the “Company”), a leading Canadian processing and manufacturing company specializing in cannabis 2.0 and 3.0 products, is pleased to announce its financial and operational results for the three months ended September 30, 2024, 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, 2024 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 HIGHTLIGHTS FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2024
Ayurcann continues to deliver exceptional growth, reflecting its strategic focus on quality, innovation, and operational efficiency. Key highlights for the three-month period include:
- Revenue Growth: Gross revenue increased 14.76 million for the three-month period (compared to $11.77 million for the same period last year), representing an increase of 25%.
- Profitability: Gross margin, calculated on net revenue, was a robust 38%, with an adjusted positive EBITDA1 of $290,505, highlighting our commitment to efficient operations and sustainable growth.
- Industry Leadership: Ayurcann was the #1 producer of vapes in Ontario2 and a Top 5 pre-roll manufacturer by volume3 in Ontario during the period, solidifying our position as a market leader in these categories.
A Transformative Year for Growth
The close of fiscal 2024 and the beginning of fiscal 2025 marked a pivotal time for Ayurcann and the broader cannabis industry in Canada. Reflecting on the Company’s success, Igal Sudman, CEO, stated:
“Our business model and disciplined execution have enabled Ayurcann to expand both locally and nationally. By focusing on innovation, building strong partnerships, and growing our signature brands—such as Fuego, Xplor, Xplor LevelX, and Happy & Stoned—we continue to deliver consistent quarter-over-quarter growth. Our vision remains clear: to become a dominant player in the cannabis industry.”
With a proven track record of growth, strong market leadership, and a robust portfolio of high-quality brands, Ayurcann remains well-positioned to thrive in an evolving market.
Corporate Updates
Appointment of New Chief Financial Officer
The Company is please to announce the appointment of Yisroel Zuchter as the Company’s Chief Financial Officer to replace Roman Buzaker, effective December 2, 2024. Mr. Buzaker will remain the Company’s President, Chief Operating Officer, and a director of the Company. With over 20 years of financial management experience, Mr. Zuchter will be responsible for overseeing Ayurcann’s financial operations, strategy, and growth initiatives.
Prior to joining the Company full time, Mr. Zuchter was a financial consultant to the Company for the last few quarters. In his career, Mr. Zuchter has held a number of progressively more senior positions in a variety of industries, including Banking, Retail and Telecom. His expertise spans across financial reporting, planning, analysis, and driving operational efficiencies, in a manufacturing setting. Mr. Zuchter holds a Bachelor of Commerce in Finance degree from Ryerson University and is a Chartered Professional Accountant (CPA, CMA).
Driving Growth Through Quality and Innovation
Ayurcann is proud to leverage its operational expertise and strong brand reputation to capture market share in the growing cannabis industry. By continuously delivering high-quality, innovative, and value-driven products, we have built a portfolio that complements existing market demands while positioning us to capitalize on new revenue opportunities.
Over the past six months, we have secured 30 new stock-keeping units (“SKUs”) across vape, pre-roll, and concentrate categories, expanding our footprint in key provinces including Ontario, Alberta, Manitoba, Saskatchewan, and British Columbia. Additionally, we are thrilled to announce our growth in Newfoundland and Yukon. This strategic growth highlights our ability to deliver innovative, high-quality products that resonate with consumers and retailers alike.
Efficiency: A Foundation for Future Growth
To remain competitive and scale effectively, Ayurcann has implemented advanced systems to enhance manufacturing capabilities and supply chain management. By building stronger partnerships and streamlining operations, we have positioned the Company for long-term growth while improving cost efficiencies. These initiatives reflect our commitment to operational excellence and sustained profitability.
Our Team: The Heart of Our Success
Our team, both internal and external, is the backbone of Ayurcann's achievements. By setting clear short- and long-term goals, we ensure that every member is aligned with the Company’s vision. We foster a culture of reward, recognition, and innovation, empowering our team to exceed expectations and drive growth in a competitive landscape.
Resilience in a Dynamic Market
While the cannabis industry faces challenges such as price compression and market volatility, Ayurcann remains resilient. Demand for our products remains steady and growing, supported by our unwavering focus on quality and value. This strategic approach has enabled us to maintain a strong competitive position in the marketplace while capitalizing on the industry’s overall upward trajectory.
As we look ahead, Ayurcann’s dedication to innovation, efficiency, and consumer-driven growth continues to pave the way for success. We remain committed to delivering value to our stakeholders while expanding our footprint and enhancing our market position.
Ayurcann is poised for continued success as a leading player in the cannabis industry. With a proven ability to adapt to market challenges, expand product lines, and enhance operational efficiency, we are confident in our ability to drive long-term growth and deliver value to our shareholders.
Update on Business Combination
Further to the Company’s press releases dated June 27, 2024 (the “June 27 Release”) and November 20, 2024, the Company has received additional correspondence from Arogo Capital Acquisition Corporation refuting the grounds on which the Company has terminated the Business Combination. Capitalized terms not otherwise defined herein have the meanings attributed to them in the June 27 Release. The Company will provide further updates as soon as possible.
For further information, please contact:
Igal Sudman, Chairman and Chief Executive Officer
Ayurcann Holdings Corp.
Tel: 905-492-3322
Email: 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 focus on custom processes and pharma grade products for the adult use and medical cannabis industry in Canada; the Company meeting its goals and strategic focuses as set out herein; the Company continuing to grow and capitalize on its revenue and growth trajectory; the Company being well-positioned for long-term growth, as well as thriving in an evolving market while improving cost efficiencies; the Company becoming a dominant player in the cannabis industry; Mr. Zuchter being appointed as the Company’s Chief Financial Officer and his responsibilities within the Company; the Company’s ability to deliver innovative, high-quality products that resonate with consumers and retailers; the Company’s innovation, efficiency, and consumer-drive growth paving the way for its success; the Company being committed to delivering value to its stakeholders while enhancing its market position; the Company continuing to be a leading player in the cannabis industry; and the Company’s plans to enhance its product development capabilities by differentiating its products from its competitors.
Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company will focus on custom processes and pharma grade products for the adult use and medical cannabis industry in Canada; the Company will have the ability to meet its goals and strategic focuses as set out herein; the Company will have the ability to continue to grow and capitalize on its revenue and growth trajectory; the Company will be well-positioned for long-term growth, as well as to thrive in an evolving market while improving cost efficiencies; the Company will become a dominant player in the cannabis industry; Mr. Yisroel Zuchter will be appointed as the Company’s Chief Financial Officer and have the ability to carry out his responsibilities within the Company; the Company will have the ability to deliver innovative, high-quality products that resonate with consumers and retailers; the Company’s innovation, efficiency, and consumer-drive growth will pave the way for its success; the Company will have the ability to deliver value to its stakeholders while enhancing its market position; the Company will continue to be a leading player in the cannabis industry; and the Company having the ability to enhance its product development capabilities by differentiating its products from 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 focus on custom processes and pharma grade products for the adult use and medical cannabis industry in Canada; the Company’s inability to meet its goals and strategic focuses as set out herein; the Company’s inability to continue to grow and capitalize on its revenue and growth trajectory; the Company not being well-positioned for long-term growth, and thrive in an evolving market while improving cost efficiencies; the Company not becoming a dominant player in the cannabis industry; Mr. Yisroel Zuchter not being appointed as the Company’s Chief Financial Officer and carrying out his responsibilities within the Company; the Company’s inability to deliver innovative, high-quality products that resonate with consumers and retailers; the Company’s innovation, efficiency, and consumer-drive growth not paving the way for its success; the Company’s inability to deliver value to its stakeholders while enhancing its market position; the Company being unable to be a leading player in the cannabis industry; and the Company’s inability to enhance its product development capabilities despite differentiating its products from 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 because 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 Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and, therefore, highlight trends in the Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.
2 Based on reporting by Hifyre IQTM, as of September 30, 2024.
3 Based on Ontario Cannabis Store Data, as of September 30, 2024.
