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CANADA HOUSE WELLNESS GROUP ANNOUNCES RECORD FY2022 Q4 RESULTS, 90% REVENUE INCREASE OVER Q4 2021 RESULTS

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MONTREAL, June 28, 2022 /CNW/ – Canada House Wellness Group (CSE: CHV) (“Canada Accommodation“or the”Company“) is pleased to announce its financial results for the three months ending April 30, 2022. All amounts are stated in thousands of Canadian dollars. Full details can be found at www.sedar.com.

Canada House Logo (CNW Group/Canada House Wellness Group Inc.)

Fourth Quarter 2022 Financial Highlights:

  • The turnover was $5,497an augmentation of $2,599 i.e. 90%, compared to $2,898 during the same period of the previous year.

  • Loss and comprehensive loss for the three months ending April 30, 2022has been $2,146a decrease of $4,010 or 65% compared to a loss of $6,156 at the same time in 2021.

  • Adjusted EBITDA 1 of $322 compared to ($3,070) for the three months ending April 30, 2021an augmentation of $3,392 in earnings.

  • Cash flows used in operating activities for the twelve months ending April 30, 2022 has been $1,991a decrease of $1,364 or 41%, compared to $3,355 at the same time in 2021.

  • Cash flows used in investing activities for the twelve months ending April 30, 2022 has been $551 compared to $664 over the same period in 2021, a decrease of $113 or 17%.

  • Net cash provided by financing activities for the twelve months ending April 30, 2022 has been $1,465 compared to $4,087 over the same period in 2021, a decrease of $2,622 or 64%.

  • Equity was in deficit by $2,483 compared to $6,873 surplus to April 30, 2021.

  • The cash was $758 of the April 30, 2022 compared to $1,835 like a April 30, 2021.

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1Adjusted EBITDA is a non-IFRS measure used by management that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as operating loss and comprehensive loss, as reported, before financial and transaction costs, taxes, depreciation and amortization, and adjusted to remove share-based payments , fair value adjustment on sale of inventory, fair value adjustment on assets and other non-monetary items, including impairment losses. Management believes that this measure provides useful information as it is a commonly used measure in financial markets to estimate operating performance on an adjusted basis, as described above. See the reconciliation of “Adjusted EBITDA (non-IFRS measure)” below.

“We are extremely pleased with our continued quarter-over-quarter revenue growth and positive Adjusted EBITDA. Our strong fourth quarter results reflect the strength and continued growth of our high-margin medical platform and the success of our new adult SKUs in recreational markets across Canada“, commented Chris ChurchillSmith, CEO of Canada House. “The steps we have taken to date to integrate with MTL Cannabis have been successful and we expect our revenue growth and financial performance to continue on their current trajectory as we further align our operations with a strategy. consistent.

Reconciliation of “Adjusted EBITDA (non-IFRS measure)”

3 months
ended

3 months
ended

April 30,

April 30,

2022

2021

Net income and comprehensive income for the period

($2,146)

($6,156)

Financial and transaction costs

810

770

Provision for income taxes

(90)

64

Depreciation and amortization

263

257

Amortization of rights of use

90

110

Inventory write-down

1,259

1,834

Stock-based compensation

53

270

Fair value adjustment on sale of inventory

(5)

869

Fair value adjustment of biological assets

88

(1,088)

$2,468

$3,086

Adjusted EBITDA

$322

($3,070)

About Canada House Wellness Group

Canada House Wellness Group is the parent company of Abba Medix Corp., a licensed producer in Pickering, Ont. that produces high quality medical grade cannabis; IsoCanMed Inc., a licensed producer in Louiseville, Quebec growing premium cannabis in its 64,000 square foot indoor production facility; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients with simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that connects physician, provider, and patient to data that supports treatment with medical cannabis.

Canada House Wellness Group’s goal is to become the leading premium craft cannabis cultivator and cannabinoid therapy provider, targeting medical cannabis markets globally. Please visit www.canadahouse.ca or the Company’s public filings at www.sedar.com.

Caution Regarding Forward-Looking Information. This press release contains forward-looking statements, including statements regarding, among other things, the Company’s clinical, manufacturing and technology activities, future plans, markets, objectives, goals, strategies, intentions, the Company’s beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, ” possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “goal”, and “continue” (or their negative form) and words and expressions of similar scope. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain important factors or assumptions are applied to make forward-looking statements, and actual results may differ materially from those expressed or implied by such statements. Important assumptions used to develop the forward-looking information in this press release include, among other things, the closing of the transaction with MTL Cannabis and the receipt of all necessary regulatory and shareholder approvals associated therewith, regulations relating to the use of cannabis under the Access to Cannabis for Medical Purposes Regulations and the Cannabis Act and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian federal government, making cannabis and cannabis edibles, vapes and oils legal for recreational use on October 17, 2018 and October 17, 2019; Liquidity and capital resources of the company, including the availability of additional capital resources to finance its activities; level of competition; the ability to adapt products and services to changes in the market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about important factors that could cause actual results to differ materially from expectations and about important factors or assumptions applied in making forward-looking statements can be found in the most recent annual and interim MD&A of Company under the heading “Risks and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulators. The Company undertakes no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canada House Wellness Group Inc.

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