Ayurcann Holdings Corp., 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
The company is 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 Officer
Ayurcann Holdings Corp.
Tel: 905-492-3322
Email: info@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.
