EDMONTON, Alberta--(BUSINESS WIRE)--Premium 5 Ltd. (“Premium 5” or the “Company”) today announced financial results for its fiscal 2020 third quarter ending September 30th, 2020.
Premium 5 has successfully navigated complex product development and regulatory challenges to offer a portfolio of innovative concentrate products. Currently, the Company has 22 SKU offerings across Canada. For the recreational market, Premium 5 is available in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and the Northwest Territories. For medical cannabis users, Premium 5 is listed through Shelter Market and Shoppers Drug Mart’s online cannabis platform, Medical Cannabis by Shoppers.
The large SKU offering across Canada has allowed for cannabis users to have more variety and an easier access to product. Premium 5 believes that the concentrate category has an incredible promise for continued success because it provides convenience, higher potency, cleaner flavor, and a better value overall.
Financial and Operating Highlights for Fiscal Q3 2020 (in CAD)
- Unaudited Gross Sales of approx. $4.4 million
- Recreational sales revenue increased by 22% sequentially, supported by brand expansion and the introduction of new SKU’s across Canada
- Expansion into medical sales supported by new SKU availability and supply to both Medical Cannabis by Shoppers and Shelter Market medical platforms
- Numerous improvements in efficiency and inhouse handling of all aspects of labelling and package preparation have contributed to increased margins
- Based on a market report from AdCann, Premium 5 has garnered 55% of the non-vape concentrate market, the largest market share by far even against some of the largest companies in cannabis
- To date, the Company has sold approximately 180,000 units
- Premium 5 has maintained an asset light business model which has allowed for the Company to reach profitability in 6 months
“Our third quarter performance was strong evidence of how Premium 5 has continued to establish itself as the leading provider of hydrocarbon concentrates in Canada. The company delivered significant growth in the third quarter driven by stronger revenues, more SKU availability across Canada, and an increase in consumer-choice for high-quality concentrates” said David Schwede, CEO of Premium 5 Ltd. In Q2, Premium 5 received purchase order revenue of $3.6 million, driving a net profit of $408,000. In Q3, Premium 5 surpassed Q2 revenue at $4.4 million and the Company expects to generate Q4 revenue of $5 million. Premium 5 continues to hold early market share and looks to further increase the gap between itself and the various competitors in the high-end concentrate category.
Success, and the excellent reputation Premium 5 has built among consumers, leaves us well positioned to enter new and exciting product segments with plans to launch new brands with extended reach into different consumer groups. As an established brand in the cannabis industry, we are in a favorable position to provide new and innovative ways to consume cannabis.
Q3 2020 Select Financial and Operational Results
Since successfully launching the first hydrocarbon products in the Canadian recreational and medical markets and becoming the first to launch live resin vapes, Premium 5 has taken bold actions to position itself for future growth and success. Through a combination of increased SKU listings, availability in additional provinces, increased throughput, and maintaining low operating costs, Premium 5 is on track to achieve a sequential increase in profitability in Q4 and through 2021. Today’s results demonstrate significant progress in all these areas.
Premium 5 believes that the Company is well positioned to take significant steps forward in Q4 fiscal 2020, and subsequently, Q1 fiscal 2021, including:
- Expected gross revenue of between $9M and $12M
- Opening a financing round set to close November 27th
- Actively assessing opportunities in US states with limited licensing frameworks
This press release contains forward-looking information under applicable securities laws. These statements may relate to anticipated results or events and include, but are not limited to, our ability to drive growth into Q4 and fiscal 2021, future brand launches through Premium 5, our expansion abilities, our SKU supply, our new and exciting product segments, and commercializing our new cultivars. Forward-looking statements can be identified by the use of forward-looking terminology such as “expect”, “anticipate”, “believe”, “estimate”, “plan”, “should”, “forecast”, “foresee”, “continue”, or terminology of a similar nature. Forward-looking statements are made on the basis of current up-to-date information, applicable estimates and assumptions, historical trends within the company, current conditions and expected future developments. However, it is not conducive of new information. We will work to update any such forward-looking information whether it is a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. Companies, investors, and readers are cautioned that this information may not be appropriate for any other purpose.
Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on the information available to the Company on the date hereof, no assurance can be given as to future results, approvals or achievements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The Company disclaims any duty to update any of the forward-looking statements after the date of this Annual Information form except as otherwise required by applicable law.
About Premium 5:
Premium 5 products offer a feeling that only the terpenes from a High Terpene Full Spectrum concentrate can give and encourages consumers to find their feeling. The Company is dedicated to creating high-quality full spectrum concentrates, selling a premium high THC experience, and providing a healthier, more discrete way to medicate/consume.
Products being offered under the Premium 5 brand are crafted from indoor grown, fresh-frozen, whole bud that has been carefully selected for optimal cannabinoid and terpene profiles to offer customers only the most exceptional quality.
Premium 5 prides themselves in being consumer-driven to delight their partners, their consumers, and their communities. For more information visit https://premiumfive.ca/.