Lifeist Wellness Inc., a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, provided updates with respect to its wholly owned subsidiary CannMart Labs Inc. (“Labs”).
Continued Progress Commercializing Proprietary Brands
Commercializing proprietary 2.0 branded cannabis products is a key part of Labs’ strategy to drive higher margin growth. In recent months Labs has made solid progress commercializing its award-winning Roilty brand, with expanded capacity, increased distribution and sell-through, and development efforts toward an expanded portfolio of product formats.
The Roilty proprietary brand is now available in six Canadian provinces, Alberta, Saskatchewan, Manitoba, Yukon, Nunavut, and Northwest Territories, four of which are being fed products produced at Labs’ facility in Etobicoke, Ontario. Labs has been successfully producing live resin since fall 2021, and having seen solid traction for co-manufactured shatter, has more recently begun commercial scale runs of Labs-produced shatter, opening up another category of Labs-produced product. Labs is currently on track for the Labs-produced shatter to be in market by fiscal Q3 2022. In total, there are now 10 Roilty SKUs in the market. Roilty vapes are performing particularly well, as are Roilty live resin products such as Priest Punch, Kings Kush and Lemon Haze. To meet increasing demand, Labs continues to add capacity month over month processing fresh frozen and dried biomass through its extraction units.
“Among the many good things coming out of the CannMart business unit is our proprietary brands initiative, and in particular, in-house production at our state-of-the-art BHO extraction facility,” said Daniel Stern, CEO of CannMart. “We are providing a growing number of provinces with an increasingly diverse portfolio of cannabis 2.0 products, and even with modest price compression we are experiencing at the wholesale level, we have been able to generate strong gross margins due to our scale and efficiency. We are continuing to focus on capacity expansion, growing distribution, and R&D.”
Dealer’s License: Construction Approval Received
Labs has received approval from Health Canada to begin construction at its facility for future storage and distribution of certain controlled substances including psilocybin, psilocin, ketamine (ketamine hydrochloride), LSD (lysergic acid diethylamide), DMT (N, N-dimethyltryptamine) and MDMA (3, 4-methylenedioxymethamphetamine), as part of its application for a Controlled Drugs and Substances Dealer’s License (“Dealer’s License”). While making progress in the application process with this construction approval, in the immediate term Labs will not commence construction at the facility as it instead allocates its capital and resources towards further advancing its product pipeline, promising a nearer-term path to profitability and value creation than psychedelics currently would.
“CannMart Labs is an important asset and a key part of the Lifeist wellness platform,” commented Meni Morim, CEO of Lifeist. “While we still believe that psychedelics could have a place on our platform, at the moment we are prioritizing our recreational cannabis and nutraceuticals businesses where the opportunities are both significant and have clearer paths to create value for shareholders. We will continue to evaluate how to prudently advance our Dealer’s License application with this in mind.”
Share Issuance Related to CannMart Labs Inc. Acquisition
The Company intends to issue an aggregate of 4,375,000 common shares (issued at a deemed price of $0.0616, which is equal to the seven-day volume weighted average), without a hold period, as payment of the sixth tranche of the remaining base purchase price to the vendors under the share purchase agreement for the acquisition of Labs. The issuance is considered to be a shares for debt transaction under the policies of the TSX Venture Exchange (the “TSX-V”) and remains subject to TSX-V approval.
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards; CannMart Labs, a BHO extraction facility for the production of high margin cannabis 2.0 products; the CannMart.com marketplace, which provides U.S. customers with access to hemp-derived CBD and smoking accessories; Australian Vapes, Australia’s largest online retailer of vaporizers and accessories; and Mikra, a biosciences and consumer wellness company seeking to develop innovative therapies for cellular health.
Information on Lifeist and its businesses can be accessed through the links below:
www.lifeist.com
https://cannmart.com
www.australianvaporizers.com.au
www.wearemikra.com
