Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV:
LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF), a health-tech
company that leverages advancements in science and technology to
enable you to find your path to wellness, today announced a
strategic move designed to continue to sharpen the Company’s focus.
The streamlining of the Company around wellness strategies with
higher growth and profitability potential represents a continuation
of a renewed commitment by Lifeist to create and return value to
shareholders.
“We were proud to be one of the first companies
in Canada to enter the online business-to-consumer (B2C) medical
cannabis space and to provide high quality products to patients,
but the time has come to realign our focus. The regulatory and
consumer conditions for medical cannabis in Canada have evolved
such that achieving success would require significant and ongoing
investments without a growth trajectory and near-term returns to
support it,” commented Meni Morim, Lifeist’s Chief Executive
Officer. “Accordingly, we have moved decisively to realign all our
resources on more promising near-term opportunities, particularly
our cannabis B2B distribution and manufacturing businesses, and our
recently-launched nutraceutical initiative, each of which enjoy a
clearer path to growth with higher near-term profit potential.”
Daniel Stern, CEO of CannMart, added, “We have
entered into an agreement with Medicibis, operators of
Mendocannabis.ca to facilitate and complete the transfer of our
registered medical patients to Medicibis and we are confident in
Medicibis’ ability to provide the same care and kindness we
provided through our cannmart.com platform. CannMart’s B2B
recreational cannabis platform (as opposed to its B2C medical
platform), which includes the distribution and logistics business
together with CannMart Labs, is the overwhelming driver of our
cannabis business. It is growing to be about 90% of our cannabis
revenue and has been delivering substantially all of the gross
margin contribution, making the B2C business less relevant and no
longer core to our long-term strategy. Formalizing this shift
enables CannMart to put resources where it can create the most
value.”
“Providing Canadian cannabis patients a platform
to purchase their medicine will always be Mendo’s focus. We
understand that change is hard, and we look forward to earning the
trust of every single CannMart patient that transitions to our
platform through our compassion pricing, diverse selection of
products, and unparalleled service,” said Jay Schwartz, Chief
Operating Officer of Mendo.
Mark Shapiro, Mendo Chief Commercial Officer,
added, “Patients are our passion at Mendo and today’s announcement
reflects that core value. We are delighted to give those that
choose to transfer, a new home. The importance of having a plan, in
this case a preferred medical provider for patients to easily
transfer to, is essential to ensure Canadian cannabis patients
continue to have their needs met and receive their medicine from
trusted sources.”
Mendo will offer CannMart patients a discount of
10% on two orders of the new member's choice to further ease the
transition. Also, If a patient's medical document is expired or is
expiring this year, Mendo will cover the cost for renewal upon
transfer to their platform.
Kronos Capital Partners acted as financial
advisor to Lifeist in connection with the agreement relating to the
transfer of patients.
B2B Recreational Cannabis
Focus
Within cannabis, Lifeist’s strategic focus is to
be the pre-eminent value-added distribution platform and
manufacturer of higher margin products serving the cannabis 2.0
consumer. The Company believes that these areas offer the greatest
potential for growth and value creation for shareholders.
As a distributor, CannMart has established
supply agreements with provincial government cannabis control
boards and retailing bodies in the provinces of Ontario, Alberta,
British Columbia, Manitoba, New Brunswick and Saskatchewan, and
most recently added Yukon, Northwest Territories and Nunavut,
constituting access to approximately 73% of adult Canadians. It is
now the trusted distribution partner for 10 LPs and 21 brands in
addition to in-house brands Roilty and Mezzero and 3 licensed
brands. Most recently CannMart added LPs including J2 Science,
Embark Health, TorrCann, JMF Growers family and Loosh Brands to its
growing list of partners and also added cannabis-cause brand
TobaGrown under license agreement.
Meanwhile, CannMart Labs began commercial
production in November 2021 with live resin products and is now
considering developing new formats to expand the portfolio of
cannabis 2.0 products. Earlier this month, CannMart’s cannabis 2.0
consumer-focused house brand “Roilty'' won the prestigious
“Canadian LP Brand of the Year'' award at the 2021 ADCANN Awards,
only months after the brand’s initial launch.
Collectively, CannMart’s B2B revenue stream
represented approximately 90% of Lifeist’s cannabis revenue for the
nine months ended August 31, 2021 and for the twelve months ended
November 30, 2020, and has delivered substantially all of the
revenue growth and gross margin contribution during each of these
periods.
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic
wellness revolution, Lifeist is a portfolio of wellness companies
leveraging advancements in science and technology to enable
individuals to find their personalized path to wellness. Portfolio
business units include: CannMart, which operates a B2B wholesale
distribution business facilitating recreational sales to Canadian
provincial government control boards; CannMart Labs, a BHO
extraction facility for the production of high margin cannabis 2.0
products; and the CannMart.com marketplace, which provides Canadian
medical customers with a diverse selection of cannabis products
from a multitude of federally licensed cultivators and its U.S.
customers with access to hemp-derived CBD and smoking accessories;
Australian Vapes, the country’s largest online retailer of
vaporizers and accessories; Findify, a leading AI-powered search
and discovery platform; and Mikra, a biosciences and consumer
wellness company seeking to develop innovative therapies for
cellular health and recovery.
Information on Lifeist and its businesses can be
accessed through the links below:
www.lifeist.comwww.cannmart.comwww.australianvaporizers.com.auwww.wearemikra.com
About Medicibis
Medicibis operates out of a 20,000 sq.ft.
cannabis cultivation facility located 15 minutes from downtown
Montreal in St. Jean Sur Richelieu. Medicibis also operates an
online portal for medical patients that ships nationwide through
their website mendocannabis.ca. Mendo's menu has been carefully
curated to offer a variety of sought-after products from licensed
producers from all over Canada. Mendo is positioned to become one
of the leading suppliers of medical cannabis to patients and
veterans in the country.
Contacts
Lifeist Wellness Inc.Meni Morim, CEOMatt
Chesler, CFA, Investor RelationsPh: 647-362-0390Email:
ir@lifeist.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release or has in any way approved
or disapproved of the contents of this press release.
Forward Looking Information
This news release contains “forward-looking
information” within the meaning of applicable securities laws. All
statements contained herein that are not historical in nature
contain forward-looking information. Forward-looking information
can be identified by words or phrases such as “may”, “expect”,
“likely”, “should”, “would”, “plan”, “anticipate”, “intend”,
“potential”, “proposed”, “estimate”, “believe” or the negative of
these terms, or other similar words, expressions and grammatical
variations thereof, or statements that certain events or conditions
“may” or “will” happen.
The forward-looking information contained
herein, including, without limitation, statements related to the
development of future products by Cannmart Labs. While we consider
these assumptions to be reasonable based on information currently
available to management, there is no assurance that such
expectations will prove to be correct. By its nature,
forward-looking information is subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. A variety of factors,
including known and unknown risks, many of which are beyond our
control, could cause actual results to differ materially from the
forward-looking information in this press release. Such factors
include, without limitation: the determination of B2B revenues of
CannMart being materially less than anticipated. Additional risk
factors can also be found in the Company’s current MD&A and
annual information form, both of which have been filed under the
Company’s SEDAR profile at www.sedar.com. Readers are cautioned not
to put undue reliance on forward-looking information. The Company
undertakes no obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable law. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement.
Source: Lifeist Wellness Inc.
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