Kiaro's Business Development Continues Unabated As Company
Reports Significant Revenue Growth, Major Acquisitions and
Financing Placing Company In Best Ever Financial Condition To
Support Further Organic and M&A Growth
VANCOUVER, BC, June 30, 2021 /CNW/ - Kiaro Holdings Corp. (TSXV:
KO) (the "Company" or "Kiaro"), a national omni-channel cannabis
retailer and wholesale distributor is pleased to share the
following mid-year corporate update with respect to the Company's
existing operations, organic growth, mergers & acquisitions
growth and balance sheet strength.
Kiaro CEO, Daniel Petrov, stated
"With the half-way point of the year now upon us, we are taking
this opportunity to update our shareholders and the broader small
cap investor community about Kiaro's incredible achievements to
date, as well as, provide a view of our path forward. Suffice
it to say that Kiaro is delivering a business performance that is
matched by very few companies in the cannabis space. 2021 continues
to be a transformative year with real revenues, growth and
financial strength that will combine to provide us with strong
continued growth within the parabolic growth of the Cannabis
industry."
RECORD $17.1 MILLION ANNUAL
REVENUE WITH 230% INCREASE OVER 2020
On May 4, 2021 Kiaro released its
year end results for fiscal year 2021 ended January 31, 2021, highlights of which include the
following:
- Record revenues of $17.1 million
for fiscal year 2021, an increase of 230%, compared to $5.2 million the year prior
- Same store sales increase of 58% year over year
- Gross margin of 38.1% for the retail operations during fiscal
year 2021 compared to 35% the prior year
- Milestone completion of qualifying transaction by
reverse-take-over of DC Acquisition Corp., and listing on TSX
Venture under the symbol 'KO' in October
2020
- Appointment of Eleanor Lynch as
Chief Operating Officer, and Janet
Hoffar as Chief Financial Officer, and achieving
gender-equality on the executive leadership team
$5.2 MILLION QUARTERLY REVENUE
WITH 94% INCREASE OVER Q1 2020
On June 28, 2021 Kiaro released
its financial results for the first quarter ended April 30, 2021, highlights of which include the
following:
- Quarterly revenues of $5.17
million, an increase of 94% vs $2.67
million the year prior
- Quarterly gross profit of $1.56
million, an increase of 118% vs $0.72
million in 2020
- Same store sales increase of 78% year over year
- Improvement of current ratio to 2.18 from 1.45 last
quarter
MAJOR BUSINESS DEVELOPMENT DEALS INCLUDING INTERNATIONAL
ACQUISITION, DOMESTIC ACQUISITION AND DISTRIBUTION
AGREEMENTS
Subsequent to our record revenue success for the year ended
January 31, 2021, Kiaro continued to
set its sights on both organic and M&A growth with the
following developments:
ACQUISITION - COZY CANNABIS (UNITED
STATES, AUSTRALIA,
ONTARIO)
On May 31, 2021 Kiaro signed a
definitive agreement which will see the company enter the US,
Australian and Ontario markets
with the acquisition of Cozy Cannabis, the highlights of which
include the following:
- Provides Kiaro a strategic entry into the U.S. and
Australian market: The Transaction provides Kiaro with new
revenue segments from the U.S. and Australian jurisdictions with
consumption accessory sales. As a result of the Transaction, Kiaro
is well-positioned to take advantage of any future U.S. and
Australia advances towards federal
legalization.
- Solidifies Kiaro's strategic entry into Ontario: The prime location in the
heart of Trinity Bellwoods neighborhood of Toronto is Kiaro's first brick and mortar
store in the Ontario cannabis
retail market. The location on Dundas St W. will also serve as the
eCommerce hub for Ontario thereby
strengthening their best-in-class omni channel retail
approach.
- Expands the Company's eCommerce reach both nationally and
internationally: The addition of Vaped.ca, Vaped.com, and
VaporizersDirect.com.au, complements Kiaro's current eCommerce
platform and will strengthen Kiaro's technology-forward
approach.
ACQUISITION - GRASSHOPPER CANNABIS (BRITISH COLUMBIA)
On March 16, 2021 Kiaro closed the
acquisition of Grasshopper Cannabis' Kelowna retail assets, the highlights of which
include the following:
- The subject location is in a prime area of downtown
Kelowna, which expects significant
residential and commercial investment in the near term
- Kiaro's first retail location in a key consumer market in the
interior of British Columbia
- Acquisition Expected to:
-
- Increase revenue in current fiscal year
- Increase Kiaro retail location count to 8 across Canada
Kiaro Chief Operating Officer, Eleanor
Lynch, commented "Kiaro is thrilled to add another location
to the BC portfolio, a province that has an unparalleled moat
around retail stores. Situated in downtown Kelowna we anticipate bringing a positive
contribution to their shared vision of a thriving business
community where people want to work, live and play."
EXCLUSIVE WHOLESALE DISTRIBUTION AGREEMENT - RUBICON ORGANICS
(SASKATCHEWAN)
On February 11, 2021 Kiaro
announced an Exclusive Wholesale Distribution Agreement With
Rubicon Organics In Saskatchewan, the highlights of which include
the following:
- NCD servicing over 60% of the licensed retailers in
Saskatchewan, Kiaro continues to
successfully differentiate itself from the competition by providing
outstanding brands and expertly curated products to its current and
future retailers.
- Rubicon Organics Inc. is becoming the global brand leader in
organic cannabis products. Through its wholly-owned subsidiary
Rubicon Holdings Corp, a licensed producer, the Company cultivates,
processes and sells organic certified brands & cannabis 2.0
products, including its flagship brand Simply Bare™ Organic and its
concentrate brand LAB THEORY™
SIGNIFICANTLY STRENGTHENED BALANCE SHEET THROUGH $3 MILLION BOUGHT DEAL PRIVATE PLACEMENT AND
EQUITY CONVERSION OF $6.5
MILLION
On March 25, 2021 Kiaro announced
a $3M bought deal private placement,
the details of which are as follows:
- price of $0.16 per Unit for
gross proceeds of $3,000,000.
- Each Unit consists of one common share of the Company
("Unit Share") and one half of one common share purchase
warrant of the Company (each whole common share purchase
warrant, a "Warrant"). Each Warrant entitles the holder thereof to
acquire one common share in the capital of the Company (a "Warrant
Share") at an exercise price of $0.23 per Warrant Share
- Financing done at top terms compared to peers. (See Table)
CONVERTED $6.5M CONVERTED TO
EQUITY AND SETTLEMENT OF $1.75M IN
PROMISSORY NOTES IN FISCAL YEAR 2021, LEAVING ONLY $895K IN TOTAL PRINCIPAL DEBT REMAINING
- Convertible debt and accrued interest of $6.5M converted to equity
- Settlement of $1.75M in
promissory notes in fiscal year 2021
- Leaving only $895K in total
principal debt remaining
CEO Petrov added "Suffice it to say we are very pleased with the
performance we've been able to deliver in the first half of
2021. Nonetheless, our mission is far from complete and have
our sights set on delivering even greater performance for our
shareholders in the second half of 2021 on all fronts. We
want to thank our shareholders for their patience and loyalty and
look forward to continuing to build one of the strongest cannabis
companies in the country."
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
For more information, visit: www.kiaro.com
SOURCE Kiaro Holdings Corp.