Nextleaf Solutions Ltd., a leading biotech firm and licensed cannabis processor, is pleased to report financial results for the quarter ended December 31st, 2023. The Company achieved record quarterly revenue growth, driven by market expansion, strong performance across its product portfolio, and successful operational investments and initiatives, bolstering the overall health of the business.
Quarterly Financial Highlights:
- Reports third profitable quarter.
- This quarter marked the Company’s highest gross sales period, generating over $4,100,000.
- Achieved a 190% increase in quarterly gross sales year-over-year (Q1 FY24 vs Q1 FY23), driven by strong sales performance across all product categories.
- Recorded a notable 25.1% increase in gross sales compared to the previous quarter (Q1 FY24 vs Q4 FY23).
- The Company maintained a debt-free position.
Market Expansion and Product Performance:
- Expanded market presence and increased distribution channels throughout Alberta.
- Strategically invested in inventory across key categories to bolster commercialization efforts and expand territory sales.
The Company’s revenue growth is driven by sustained momentum across all product categories within its consumer brand portfolio, including vapes, oils, and softgels. The Company’s house brands, including acclaimed legacy-to-legal brand Glacial Gold and High Plains Cannabis, launched into Alberta only two months prior to the start of Q1 (in August 2023). The Company substantially increased its distribution Province-wide and achieved successful sell-through of all initial purchase orders, receiving reorders on all items within the quarter.
“I have a personal affinity towards Alberta and its success for us as a Company, having spent over 20 years there. This was my first full quarter as interim CEO, so I spent time visiting retailers in Alberta to support our Company’s launch. It was gratifying to see first-hand how the products are gaining immediate traction and how the value proposition is resonating early on with retailers, particularly with our softgel SKUs,” shares Emma Andrews, Interim CEO.
Nextleaf anticipates launching 9 new products nationwide in Q2 FY24, further bolstering its year-over-year revenue growth.
Q2 FY24 Product Launches Include:
- Glacial Gold CBD 50 Softgels 10-Pack
- Glacial Gold Balanced 10:10 Softgels 10-Pack
- Glacial Gold CBD 50 Softgels 100-Pack
- Glacial Gold Balanced 10:10 Softgels 100-Pack
- Glacial Gold MAX THC Blueberry Dream Hybrid Vape 1.2g
- Glacial Gold HIGH THC Fuzzy Mango Vape 1g
- Glacial Gold MAX THC Grape Escape Double D Infused Prerolls 3×0.7g
- Glacial Gold MAX THC Cherry K.O. Double D Infused Prerolls 3×0.7g
- High Plains 1000mg THC Indica Oil Drops 35ml
Operational Investments and Initiatives
Key investments made during this quarter included building up inventory to support sales expansion and commercialization initiatives, as well as equipment purchases to support manufacturing. The Company also engaged new contract manufacturing partners to increase capacity and meet growing demand.
Equity and Stock Options
Nextleaf has issued an aggregate of 535,714 common shares to Company executives as compensation for services rendered, at a deemed price of $0.14 per share. The Company has cancelled 1,275,000 options to purchase common shares under its Stock Option Plan. The Company awarded various employees, executives and directors options to purchase up to 9,925,000 common shares pursuant to the Company’s Stock Option Plan, with an exercise price of $0.14 per share.
About Nextleaf Solutions Ltd.
Nextleaf® is an innovative cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-purity and high-potency bulk ingredients. Nextleaf’s multi-patented, highly automated, closed loop extraction and distillation technology sets the global standard for processing cannabis at-scale.
Contact: investors@nextleafsolutions.com
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Learn More: www.nextleafsolutions.com
