24 MONTH ROADMAP TO $50 MILLION IN SALES

SEATTLE, WASHINGTON, Sept. 06, 2022 (GLOBE NEWSWIRE) -- Pervasip Corp. PVSP ("Pervasip" or the "Company"), a developer of companies and technologies in high value emerging markets, together with Zen Asset Management today announced its 2-year strategic roadmap.

"On the heels of Artizen Corporation's reverse merger to acquire Pervasip Corp, the cannabis industry experienced a dramatic post pandemic contraction. Planned restructuring efforts had already launched in late 2021 and we took even more aggressive steps to further rationalize our business, dispose of undervalued assets, re-focus on higher margin products and allowed our leading brands to take a more aggressive posture to increase market share. Healthy inventory amounts provided for extraordinary financing via cashflow, albeit at extremely low margins, a carefully considered short term decision which has now come to an end as we have achieved our goals. All these efforts position us nicely for healthy financial growth in 2023. As promised, we have also finalized a 24-month roadmap and are in a position to provide carefully considered guidance in a market that is still extremely unpredictable," said German Burtscher, Pervasip CEO. "It is also important to note that all the Artizen brands' revenue is wholesale, revenue derived from sales to retailers. The vast majority of MSOs report revenues and resulting financials that include retail sales from stores they own in addition to usually rather small wholesale revenue, all mostly generated in protected markets. Washington State (WA) cannabis sales are taxed at 47% (!) and each dollar sold by a producer/processor is marked up 3 – 3.5 times by the retailers they sell to. Generating profitable revenue in WA will translate extremely well once our brands and operating expertise is applied in other recreational markets."

Market Overview – Washington

The below Washington State (WA) sales by category chart provides information on how monthly sales of approximately $100 million in retail sales breaks down by product category. It might also be informative to understand that June '22 sales over June '19 sales (pre pandemic) show an almost 17% increase. While WA sales are slightly above other mature cannabis states (NV, CO, OR), similar increases can be seen in those markets. An exuberant pandemic triggered belief in continued rapid growth has led to over development of production infrastructure and resulted in material oversupply of bulk cannabis flower. The market is in the process of correcting and the Company estimates Q3 2023 being the end of the corrective period, resulting in strengthening prices.

$100M In Monthly Sales By Category

After several years of recreational sales, the mature markets provide relevant insights into future sales distribution across key categories with flower and pre-rolls still leading at 59%, followed by concentrates (dabs/vape) at 29% and finally edibles and beverages at a combined 9%
Artizen brands will materially expand their flower market share and enter the concentrates and edibles market with a goal of occupying top 10% market share positions in each vertical.

Strategic Outlook Summary through Q4 2024

• Focus on expanding its Washington State footprint, strengthening its brand repertoire and aggressively expanding its product lineup
• We expect in-state revenues generated by all brands and across all product categories to reach $30 million in annualized revenue by end of Q4 2024 with Gross Margins reaching 40% and an adjusted EBIDTA of 30%
• Pervasip/Artizen Corp plans to expand its national reach by adding various recreational states to its brand footprint, either via licensing agreements or through acquisitions of recreational cultivation and retail licenses
• 95% of revenue from Artizen's brands has come from sales of cannabis flower, supporting its position of the 9^th most sold independent flower brand in North America; acquisitions and partnerships will open access to concentrates and edible verticals representing 40% of market sales and heretofore not covered by Artizen products
• Artizen projects it will generate $50 million in annualized revenues nationally by end of Q4 2024; this is a conservative estimate that does not include any potential revenue multiples from acquisition of retail opportunities.
  
  

24 Months plan detail

• Rename Pervasip Corp to Artizen Corporation by year end 2022 to better reflect the new focus of the company
• Change the OTC ticker symbol
• Re-brand all Pervasip/Artizen assets
• Continue to rationalize the business through Q1 2023 with a focus on operating margins, shedding underperforming assets, consolidating operations and focus in-house talent on higher margin operations and product lines
• Acquire concentrates assets by end of 2022, launching into the highly lucrative concentrates business
• Expand flower and concentrates offerings within our brands as well as adding new brands for certain product offerings and price points through Q1 2023
• Complete the audit and begin the OTC QB application process during Q2 2023
• Launch Artizen Wellness Q2 2023
• Enter the edibles market in Q2 2023 via acquisition and partnerships
• Artizen becomes an MSO with cultivation and retail assets in 1 – 2 additional states during 2nd half of 2024, beginning its state expansion in Q1 2023, initially through brand licensing opportunities and strategic partnerships, and eventually via acquisitions and mergers during Q3 and Q4 2024
  • Close first brand licensing agreement by end of Q4 2022
  • Close one brand licensing deal every quarter thereafter
    

Financial Outlook Q3 2022 through Q4 2023

• Reach $2.0 million in monthly revenue by end of Q1 2023
• Reach $2.5 million or $30 million in annualized revenue by end of Q4 2023 with 30% in adjusted EBIDTA
• Reach $3.0 million or $36 million in annualized revenues by end of Q2 2024 with 35% in adjusted EBIDTA
• Reach $50 million in annualized revenue with 35% in adjusted EBIDTA

Pervasip Corporation
Pervasip Corp., a developer of companies and technologies in high value emerging markets, owns Artizen Corporation and its subsidiary, Zen Asset Management LLC, a diversified asset management company founded to acquire, develop, and support companies and technologies in the cannabis industry. ZAM's existing clients operate four licensed cannabis cultivation and one processing facility in Washington. Most of the biomass produced by these independent cultivators has been sold historically under the Artizen™ brand, including all-time top selling products in flower in Washington state. Additional information on Artizen-branded products is available online at www.artizencannabis.com. Pervasip additionally owns 5% of KRTL Biotech, Inc., a developer of biotechnologies with a focus on pharmaceutical applications of cannabinol and psilocybin. Additional information on KRTL is available online at www.krtlbiotech.com. Additional information on Pervasip can be found at www.pervasip.net.

Forward-Looking Statements

This news release contains statements and information that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives, or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as may, would, could, will, likely, except, anticipate, believe, intend, plan, forecast, project, estimate, outlook, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company's business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company's ability to secure financing on reasonable terms. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company's periodic disclosure statements. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.

For further information, please contact:

T:         206-590-2408

E:         info@pervasip.net