YourWay Archives - Green Market Report

Debra BorchardtMay 30, 2023
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YourWay Cannabis Brands Inc. (CSE: YOUR)(OTC: YOURF) has been delayed in issuing its financial reports because it can’t find an auditor. The company said that since the resignation of its previous auditor Macias Gini & O’Connell LLP  in December 2022, it hasn’t been able to find a replacement. Since YourWay is a Canadian public company, the auditor needs to be registered with the Canadian Public Accountability Board to be able to accept an engagement.

The company has yet to release its 2021 or 2022 earnings statements.

The company said in a statement, “To date, we have contacted 31 firms to gauge their interest in the engagement. Unfortunately, many firms we spoke with indicated an unwillingness to accept the engagement for the reasons MGO resigned, as described in our press release dated December 20, 2022. Other reasons cited by firms included capacity constraints or their policies of not working with cannabis companies in the United States based on federal cannabis laws. We want to reassure our stakeholders that we remain committed to finding an auditor, and our search is ongoing.”

Of course, numerous cannabis companies based in Canada have been able to secure auditors. MGO quit because it said it couldn’t determine the source of cash deposited by the previous CEO  of YourWay on three separate occasions. As per MGO’s letter, there were concerns over the inability to corroborate “that the cash came from the proceeds he received when the CEO’s former company, Labtronix, was acquired by the company.”

Revenue Problems

The company is attempting to inform shareholders by noting that the market conditions in Arizona have softened considerably, impacting the company’s sales levels. YourWay also said it was having trouble collecting a significant amount owed to the company by one customer.

The statement said, “Revenues continue to be challenged, primarily driven by the shift in market conditions that led us to engage in opportunistic bulk distillate sales.  In fiscal 2021, distillate sales represented approximately 50% of the company’s sales, which declined throughout fiscal 2022 due to significant price pressures, margin compression, and the downward trend in biomass pricing.  We continue to work on solutions internally and with partners to provide a low-cost alternative to compete with the influx of cheaper bulk material in the marketplace.”

In more revenue troubles, the company said that in fiscal 2022, sales of its butane products declined by about 40% but remains the highest-performing category.  “In addition, sales of our vape cartridges dropped by approximately 19% in fiscal 2022 as compared to fiscal 2021. The overall sales decline in our branded products results from the large multi-state operators vertically integrating their operations to offer more of their own branded products.”

YourWay said that due to the revenue problems and bills it owes to vendors, it has made some changes like cutting back on low margin sales and setting up new supply arrangements.

Forum

The company said it would hold a forum for shareholders on June 6.

“This forum reflects our ongoing commitment to transparency and accountability in our communications with all stakeholders,” said Acting Chief Executive Officer, Jakob Ripshtein. “We value your continued support as we strive to build a stronger, more resilient company, and we are eager to share our progress with you.”

The company continues to launch new products and make new hires despite the company’s inability to address its accountant issues.


Debra BorchardtNovember 4, 2022
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5min00

YourWay Cannabis Brands Inc. (CSE: YOUR) (OTC: YOURF) provided an operational update, including initiatives being taken to address the management cease trade order and the delays in releasing the company’s audited annual financial statements for the year ended December 31, 2021.

“There has been significant change and evolution in our business over the past twelve months,” said YourWay Acting Chief Executive Officer, Jakob Ripshtein. “We have overhauled the organization from top to bottom, driven by a strategic corporate transformation and renewed corporate vision.” Ripshtein was named to the role in September.

Accounting Delays

YourWay said it was working with the auditors to finalize the 2021 Annual Financial Statements and that it expects to issue the report by the end of 2022. The company attributed some of the delay to a change in its auditors and changes in the company’s management personnel.

YourWay also stated that it was resolved to demand repayment of all amounts advanced, which total approximately $166,325 to Ionic Brands Corp. (OTC: IONKF) from a demand promissory note dated May 20, 2022. YourWay has provided notice to Ionic of its demand for repayment, but the funds have not yet been returned. YourWay acquired Ionic in April of this year in an all-stock transaction. The Ionic shares quit trading three months ago.

Arizona

Jacob Cohen resigned as Chief Executive Officer of YourWay in September to focus on his operational role as President of Arizona Operations. The company noted that the Arizona cannabis marketplace is in flux, and since recreational marijuana sales launched in 2022, the Arizona medicinal market has seen a downturn.

The company said in a statement, “This shift in the Arizona market has altered the focus of the company’s retail customers, and YourWay’s sales team is adapting to satisfy the shift from the medicinal market to the new demand for recreational cannabis products. The company is making an effort to balance out its portfolio by introducing several established brands to the Arizona marketplace. For example, Old Pal is a well-known and in-demand cannabis brand that has continued to be a strong performer since the Company began Arizona production and shipment in May of 2022. YourWay’s exclusive multi-year licensing agreement to manufacture, produce, promote, distribute, and sell certain Old Pal-branded cannabis products in Arizona, including whole flower, pre-ground flower, pre-rolls, and distillate cartridges in association with the Old Pal brand, has allowed YourWay to capitalize on the shift in demand in the Arizona market.”

YourWay also pointed out that throughout 2022 all wholesale product prices have decreased in the Arizona market. “The drop in the high-end market of the Arizona indoor flower price has dipped below those of California, with the breadth of quality and pricing adding to the complexity of retailing in the Arizona cannabis market. To combat this influx of competitors, the company’s growth strategy includes expanding the Venom Extracts brand, which has been part of the Arizona cannabis market since 2017 and as such, has developed significant brand awareness and loyalty amongst legacy cannabis users.”

The company was formerly known as Hollister Biosciences Inc. and changed its name to YourWay Cannabis Brands Inc. in December 2021. YourWay Cannabis Brands Inc. was incorporated in 2019 and is based in Phoenix, Arizona.

 


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