Sugarbud Announces Positive EBITDA Result for Q4, 2020 and Filing of Financial & Operating Results for the Year Ended December 31, 2020
CALGARY, Alberta, April 30, 2021 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDF) (“Sugarbud”) is pleased to announce that the Company recorded its first positive EBITDA result in Q4, 2020 and the filing of its audited consolidated annual financial statements (“Financial Statements”), related management’s discussion and analysis (“MD&A”) and annual information form (“AIF”) for the year ended December 31, 2020, which are available on SEDAR at www.sedar.com and on Sugarbud’s website at www.sugarbud.ca.
“2020 was a pivotal and exciting year for Sugarbud as we completed our first full year of operations as a craft cannabis producer – culminating with our first positive EBITDA result of $89,998 in Q4, 2020 and our fourth consecutive quarter of EBITDA growth. Despite an exceptionally challenging environment, we made meaningful and substantial progress against our primary operational and commercial objectives in a very short period of time. Much of 2020 was focused on establishing a firm foundation of operational excellence, developing our innovative and diverse product portfolio, successfully launching our Craft Cannabis Collection and expanding our reach to consumers in key markets such as Alberta, British Columbia and Saskatchewan,” stated John Kondrosky, President and CEO of Sugarbud.
Key Operating Highlights for 2020
- Successfully produced 547,904g of premium craft cannabis over 5 harvests
- Obtained an amended sales license permitting the direct sale of dried cannabis to authorized provincial/territory retailers/distributors and registered medical patients
- Launched the Sugarbud Craft Cannabis Collection of exceptional dried flower and pre-roll products
- Established provincial supply agreements with Alberta, British Columbia and Saskatchewan
- Received our first $1MM in purchase orders in Q4 2020
- Recorded net revenue for the company in Q4 2020 of $412,964
- Achieved an average net selling price per gram of $6.74
- Delivered positive EBITDA in Q4 2020 of $89,998 – Sugarbud’s fourth consecutive quarter of EBITDA growth
- Improved full year over year EBITDA by $3.8MM vs 2019.
“We made great strides in establishing our reach to core target consumer groups in 2020 and solidifying the Sugarbud brand as a leading brand in the craft cannabis space. Our year end results indicate that we remain on the right strategic path and are a clear testament to our disciplined and focused approach to cost management, operational excellence and more fundamentally – our focus on exceptional consumer driven craft cannabis products. We believe that our ongoing focus and execution against our stated strategy has positioned Sugarbud for a very strong 2021,” concluded Mr. Kondrosky.
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
The Sugarbud Craft Cannabis Collection offers consumers “Hand-Crafted Cannabis for a New Era”. The Company is proudly Albertan and is proud to share Western Canada’s long tradition of exceptional craft cannabis with the most discerning of enthusiasts. Sugarbud strives to define the intersection of product craftsmanship, quality, and value for consumers in the Canadian craft cannabis space.
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Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud’s assessment of future plans, operations and cannabis cultivation, including sales, marketing and distribution opportunities; and the Company’s ability to remain operating in accordance with developing public health efforts to contain COVID-19. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected; ability to ship cannabis products may be lower than expected; demand for Sugarbud’s products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may continue to have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to Sugarbud’s AIF and MD&A for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud’s profile on www.sedar.com. Except as required by applicable laws, Sugarbud does not undertake any obligation to publicly update or revise any forward-looking statements.
This news release provides certain financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). These non-IFRS financial measures may not be comparable to similar measures presented by other issuers. EBITDA (meaning earnings before interest, taxes, depreciation and amortization) is not a recognized measure under IFRS. Management uses certain industry benchmarks, such as EBITDA to analyze financial and operating performance. These metrics are useful to investors and research securities analysts in evaluating operating performance. These benchmarks do not have any standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. Please refer to the MD&A for additional information relating to non-IFRS measures, including the Company’s calculation of EBITDA.
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