Lifeist Wellness Reports Q3 Revenue Growth Led By Its Cannabis Subsidiary, CannMart

Cannabis-focused e-commerce company Lifeist Wellness Inc. LFST (FRANKFURT: M5B) (OTCMKTS: NXTTF), previously known as Namaste Technologies, released its third-quarter earnings Friday with gross revenue improving 12% year-over-year reaching CA$7.1 million ($5.73 million). 

Third Quarter 2021 Financial Highlights

• Higher gross revenue was led by cannabis growth of 34%;
• Gross profit and margin more than doubled year-over-year to CA$900,000 and 15% of net revenue making the fourth consecutive quarterly improvement;
• Net loss amounted to CA$6.1 million or $0.02 per share, versus a net loss of CA$7.83 million or $0.02 per share in the same quarter of the prior year;
• EBITDA loss narrowed to CA$5.4 million compared to CA$7.3 million in Q3 2020;
• Net cash used in operating activities decreased from CA$5.7 million in Q2 2021 to CA$4.9 million in Q3 2021.
• At the end of the reporting period on August 31, the company held CA$17.9 million in cash and cash equivalents, compared to $23 million as of May 31, 2021

"Our improved third quarter results reflect ongoing positive trends: higher revenue, lower costs, and better cash flow," Meni Morim, CEO of Lifeist stated. “In particular, the financial turnaround is being led by our cannabis subsidiary, CannMart, Inc., which is experiencing strong demand for its portfolio of products from consumers, retailers and provincial wholesalers across Canada as evidenced by the 34% growth in cannabis revenue in the quarter.”

Operational Highlights

• During the third quarter, CannMart Inc. signed master distribution agreements with several companies including Rapid Dose Therapeutics Corp. DOSE RDTCF to exclusively distribute its innovative RDT branded products across Canada;
• CannMart Inc. received its first purchase orders from the provinces of Manitoba, and Saskatchewan for its 2.0 consumer-focused recreational house brand “Roilty” concentrates;
• As part of its focus on the broader wellness space, the company changed its corporate name from Namaste Technologies Inc. to Lifeist Wellness Inc. effective September 9, 2021, and changed its stock ticker symbol on the TSXV to its current symbol “LFST.”
• Lifeist continues to look for ways to operate more efficiently, including subleasing its former Toronto office headquarters which is expected to generate annual run-rate savings of approximately $138,000 until the expiry of its lease in October 2024. The company will also consolidate headcount, software and marketing costs across divisions in order to reduce costs and reallocate resources more efficiently. It will also implement inventory control measures on the cannabis business to reduce carrying costs.

More recent news from Lifeist: 

'Instagram King' Dan Bilzerian Pulls IGNITE Brand From Canadian Cannabis Market, Complains Of 'Too Many Barriers'

Lifeist Wellness Stock Down On Announcing Earnings Estimates For Q3 2021

Namaste Technologies Rebrands To Lifeist Wellness, Expands UK Product Offering

Namaste Technologies Q2 Cannabis Revenue Jumps 18% YoY, Greenlane Suspends Its Pro-Forma Outlook From March

Namaste Achieves Record Quarterly Revenue, Generates CA$8M In Q4

 Price Action

Lifeist’s shares closed Thursday market session 1.85% lower at $0.08 per share. 

Photo: Courtesy of Shelby Ireland on Unsplash