Chalice Brands Ltd. Pre-announces 61% Year Over Year Fourth Quarter Growth and Record Yearly Revenues

PORTLAND, Ore., Feb. 24, 2022 (GLOBE NEWSWIRE) -- Chalice Brands Ltd. CHAL CHALF ("Chalice" or the "Company"), a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale and distribution, today pre-announces its financial and operating results for the fourth quarter 2021. All amounts stated are in US Dollars unless otherwise noted.

Fourth Quarter Preliminary Unaudited Financial Highlights:

• Record quarterly revenues of $8.9 million, a 61% year-over-year increase compared to $5.5 million for the same period in 2020.
• Estimated gross profit margin before fair value adjustments for the fourth quarter 2021 of $3.6 million, or 41% compared to $1.7 million, or 30% in 2020. Gross margin improvements are due largely to increased vertical contribution from the Company's manufactured products.
• Record total revenue of $29.3 million for FY 2021, a 34% year-over-year increase compared to $21.9 million for FY 2020. Fourth quarter of 2021 is expected to conclude the Company's first-ever adjusted EBITDA positive year and fifth consecutive positive quarter.
• Gross profit for 2021 of $12.6 million, or 43% compared to $6.8 million at a 31% gross margin in 2020. Gross margin improvements were accomplished as a result of increased vertical contribution from the Company's manufactured products.

"We are proud the Company set another record generating over $8.9 million in revenue during the fourth quarter and growing 61% year-over-year," said Jeff Yapp, President and Chief Executive Officer of Chalice Brands. "Despite a challenging quarter in the Oregon market, with overall sales declining 6% versus the same quarter year ago, we are pleased with the resiliency our Chalice stores have shown against the overall market pressures. We continue to improve Homegrown integration into the overall program and made a number of changes in our product mix, store merchandising, marketing and retail leadership that we believe will have a significant impact on growth in 2022."

The financial information included in this news release is preliminary, unaudited and subject to adjustment. It does not present all information necessary for an understanding of the Company's financial results for the fourth quarter of 2021. The Company will provide its full fourth quarter financial report at the next earnings call, to be announced at a later date.

About Chalice Brands Ltd.

Chalice Brands is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with twelve owned and four managed dispensaries in and around Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Chalice operates nationally through Fifth & Root and has operations in Oregon and California. Visit investors.chalicebrandsltd.com/ for regular updates.

Investor Relations:

John Varghese
Executive Chairman
Chalice Brands Ltd.
971-371-2685
ir@chalicebrandsltd.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer: This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Company's future business operations, the opinions or beliefs of management and future business goals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. These risks include but are not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing and retail operations such as unforeseen costs and production shutdowns, difficulties in maintaining brand loyalty, and other risks of the cannabis industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. Forward-looking information is provided herein for the purpose of presenting information about management's current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. This press release does not constitute an offer of securities for sale in the United States, and such securities may not be offered or sold in the United States absent registration or an exemption from registration or an exemption from registration.