Simply Better Brands Preliminary 2022 Net Sales Improve ~320% YoY, Announces $5M Private Placement

Simply Better Brands Corp. PKANF SBBC provided an update concerning its business progress in 2022, its outlook for 2023 and a $5 million non-brokered private placement.

Preliminary Financial Results

• Preliminary unaudited net sales for 2022 are expected to be between $65.5 and $66.0 million compared to net sales of $15.6 million achieved in 2021.

• Preliminary Q4 net sales are expected to be between $23.1 and $23.6 million. In 2022, the key drivers of growth were PureKana customer acquisition, distribution and the expansion on TRUBAR.

• The preliminary unaudited gross margin for the fourth quarter and the full year 2022 are expected to be consistent with the gross margin for the nine months ended September 30, 2022 (67% of net sales).

The company's audited financials for the period ended December 31, 2022 are scheduled to be filed on April 30, 2023.

2023 Outlook

1. The company's expectation for consolidated net sales to exceed $80 million;

2. The company expects gross margin as a percentage of net sales to be between 58% and 60%; and

3. The company expects to achieve positive adjusted EBITDA in the range of $3-4 million.

Non-Brokered Private Placement

The company announced a fully subscribed, non-brokered private placement for 20 million units at a price of $0.25 per unit for ‎aggregate gross proceeds of $5 million. The offering is expected to include participation from VRG Capital and other strategic investors. In addition, it is expected that Kathy Casey, CEO, and an insider of the company, will also participate in the offering.

The offering is scheduled to close on or about February 6, 2023, or such other date as determined by the company, and is subject to certain conditions including, ‎but not limited to receipt of TSX Venture Exchange acceptance.

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