Lifeist Reports Drop In Revenues

 Lifeist Wellness Inc. (TSXV: LFST) (OTCMKTS: NXTTF) (formerly known as Namaste Technologies)  reported its financial results for the fourth quarter and the year ending November 30, 2021. Net revenue decreased 11% to $6.4 million in the quarter versus $7.2 million for the same time period in 2020. The net loss was $4.0 million in the quarter versus $6.4 million in the fourth quarter of 2020. The improvement was attributed to improved gross margins and a gain of the fair value of a convertible note receivable.

Lifeist said the decrease in revenue was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. The company said this was partially offset by the continued growth in sales of Canadian recreational cannabis, Australian Vapes hardware revenue which increased 15%, and Findify SaaS revenue which increased 16%. Excluding Lifeist Bahamas hardware and CannMart medical cannabis, net revenue increased by 4%. All financial figures are in Canadian dollars unless otherwise indicated.

Full Year Results

Net revenue decreased 9% to $22.8 million for the full year ending November 30, 2021, versus $25.1 million for the year ending November 30, 2020. The decrease was driven by declines in hardware sales in Europe through Lifeist Bahamas and declines in medical cannabis sales in Canada through CannMart, all such operations having effectively ceased in 2022. This was partially offset by the continued growth in FY2021 of Canadian recreational cannabis revenue which increased 25%, Findify SaaS revenue which increased 16%, and Australian Vapes hardware revenue which increased 10%, in each case in comparison to FY2020. Excluding Lifeist Bahamas hardware and medical cannabis, net revenue increased 19% compared to FY 2020. the company said that the working capital position of $16.4 million at year-end remains strong.

“The past year was one of transitioning to wellness, sharpening our strategic focus, and investing to drive sustainable growth,” said Meni Morim, CEO of Lifeist. “As a portfolio of wellness companies, Lifeist is growing its B2B recreational cannabis distribution and manufacturing business, and expanding its new nutraceutical division. We believe these opportunities provide the most direct and viable path to value creation, enabling Lifeist to leverage its capabilities and expertise to differentiate itself in the growing wellness economy.”
Loan Repaid
After the quarter ended, Fire & Flower Holdings Corp. entered into a definitive agreement to acquire Pineapple Express Delivery Inc., a holder of the company’s convertible loan payable. On January 25, 2022, Fire & Flower completed the acquisition of PED, and, as part of the purchase, Fire & Flower assumed and repaid a $2,040,077 convertible loan receivable owed to the company by PED. In addition, the company received 75,100 common shares in Fire & Flower on completion of the acquisition, with a further 258,478 common shares in Fire & Flower having been placed into escrow pending completion of customary working capital adjustments and subject to achievement of certain performance-based milestones in its fiscal 2022 year.

Added Mr. Morim, “With Mikra’s first nutraceuticals product, CELLF, a novel cellular therapeutic compound targeting systemic fatigue, already in pre-orders and our distribution, logistics and CannMart Labs businesses driving growth in our recreational B2B cannabis business, we believe we have the platform for sustainable growth.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


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