Icanic Brands Company, Inc. Posts Record Second Quarter 2022 Financial Results

VANCOUVER, British Columbia, Sept. 07, 2022 (GLOBE NEWSWIRE) -- Icanic Brands Company Inc. ICANICNAF ("Icanic Brands" or the "Company"), a multi-state brand operator of premium cannabis brands in California, is pleased to report its financial results for the three and six months ended June 30^th, 2022. All currency references used herein are in United States dollars unless otherwise noted.

Micah Anderson, CEO of Icanic, said, "The past few months have been the beginning of a transformational period for the Company. Immediately upon closing of the acquisition of LEEF Holdings, Inc. ("LEEF") we began turning the contemplated synergies into concrete and measurable results. Despite a challenging macro environment, we have been able to drive revenue growth and management costs that are propelling us towards profitability. We are seeing month over month evidence of the substantial growth prospects of our business."

Corporate Highlights:

• Net sales of $8,121,247 for the three months ended and $15,490,633 for the six months ended June 30^th, 2022, representing an increase in Icanic Brands year over year revenue of 26.5% and 84.9% respectively.
• Gross Profit of $2,684,101 for the three months ended and $5,722,194 for the six months ended June 30^th, 2022.
• Gross Margin of 33.05% for the three months ended and 36.94% for the six months ended June 30^th, 2022, representing an increase in Icanic Brands year over year gross margin of 13.8% and 16.4% respectively.
• Adjusted EBITDA of ($31,801) for the three months ended and $1,589,719 for the six months ended June 30, 2022.

Management Commentary:

"The results are in-line with our expectations as we experienced a significant increase in revenue due to the acquisition of LEEF, but also incurred several one-time transaction related costs. The quarter's strong gross margins are a strong indication that we are on the right track with our consumer-packaged goods strategy, which includes distribution of brands including Ganja Gold, HEADY and Real Deal Resin. I expect we will continue to realize additional synergies over the coming months."

"We're continuing our work with strategic partners to increase our brand presence throughout the state. We're also continuing our conversations to make the Company fully integrated, including finalizing the previously announced acquisition of DNA Organics, Inc. ("LIFTED"), a premium California cultivator and manufacturer. We're poised to increase efficiencies and deliver the highest quality cannabis products at the lowest cost of manufacturing. Additionally, we have a robust pipeline of potential acquisitions that are currently being reviewed."

Q2 2022 Financial Results Discussion

Total revenue for the three months ended June 30^th, 2022 was $8,121,247. This represents an increase in previously announced Icanic Brands revenues of 26.5% year over year. The six months ended June 30^th, 2022, revenue was $15,490,633, which represents an increase of 84.9% in previously announced Icanic Brands revenues.

Consumer packaged goods ("CPG") revenue continues to increase as a percentage of overall sales as the Company works to increase the distribution of its brands, including Ganja Gold, HEADY and Real Deal Resin.

Gross profit was $2,684,101 for the three months ended June 30^th, 2022 and $5,722,194 for the six months ended June 30^th, 2022. This represents an increase of 13.8% and 16.4% respectively versus the same period in 2021. The increase in gross profits were largely due to the Company's strong supply chain management, increased manufacturing efficiencies, as well as greater diversification into CPG branded products.

Adjusted EBITDA was ($31,801) for the three months ended June 30^th, 2022 and $1,589,719 for the six months ended June 30^th, 2022 after accounting for one time integration and transaction charges.

Financial results and analyses will be available on the Company's investor relations website (https://www.icaninc.com/investors) and SEDAR (www.sedar.com).

About Icanic Brands Company Inc.

Icanic Brands Company Inc. is a leading cannabis branded products manufacturer based in California, the largest and most competitive cannabis markets in the world. The company's mission is to make cannabis safe and approachable - that starts with manufacturing high-quality products delivering consistent experiences.

For more information, please visit the company's website at: www.icaninc.com.

ICANIC BRANDS COMPANY INC.

Per:                     "Micah Anderson"

Chief Executive Officer

For further information about Icanic Brands, please contact the Company at:

Email: ir@icaninc.com

Phone: (778)999-4226

The CSE does not accept responsibility for the adequacy or accuracy of this release.

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

Non-IFRS Measures

This press release includes reference to "EBITDA" which is a non-International Financial Reporting Standards ("IFRS") financial measures. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. The Company defines EBITDA as earnings before interest, tax, depreciation and amortization and removal of non-reoccurring expenses. EBITDA has no direct, comparable IFRS financial measure. The Company has used or included EBITDA solely to provide investors with added insight into the Company's potential financial performance. Readers are cautioned that such non-IFRS measures may not be appropriate for any other purpose. Non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.