REG - Yooma Wellness Inc. - Yooma Wellness Q3-2021 Results

Yooma WellnessAnnouncement

30/11/2021 07:00

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RNS Number : 9535T  Yooma Wellness Inc.  30 November 2021

30 November 2021

 

Yooma Wellness Inc.

("Yooma" or the "Company" or the "Group")

 

Yooma Wellness Reports Results for Third Quarter of 2021

 

Significant growth and operational progress achieved in the Third Quarter

 

Yooma Wellness Inc. ("Yooma" or the "Company") (CSE: YOOM, AQSE:YOOM), a
Toronto-based vertically-integrated global wellness platform that develops and
markets a portfolio of wellness brands, today released its interim financial
statements (the "Financial Statements") for the three-month period ended 30
September 2021 (the "Reporting Period").  A summary of Yooma's operational
and financial highlights during the Reporting Period are set out below and
more detailed information is contained in the Financial Statements and related
Management Discussion and Analysis which are available on Yooma's SEDAR page
at www.sedar.com (http://www.sedar.com) .

 

Lorne Abony, Chairman at Yooma, commented: "Yooma's success in the third
quarter positions the Company as a clear leader in the global CBD and wellness
space.  Based on actual revenue achieved in the third quarter of US$2.1
million, with only partial revenue contribution so far from key strategic
acquisitions acquired during the quarter and subsequent to quarter-end, we
believe that Yooma is significantly undervalued compared to its public
competitors."

 

Jordan Greenberg, CEO at Yooma, added: "We are extremely pleased with the
progress Yooma made in the third quarter, including the dual listing of the
Company's shares on the AQSE exchange in London, successful completion of a
US$10.3 million capital raise, and the closing of two additional strategic
acquisitions.  We continue to integrate our existing assets to achieve both
operational synergies and revenue growth."

 

Yooma Highlights (Q3 2021)

 

Yooma continues to grow in its quest to become a vertically-integrated global
leader in the marketing, distribution and sale of wellness products, including
hemp seed oil and hemp-derived cannabinoid ("CBD") ingredients.  Significant
operational highlights during the Reporting Period included:

 

Capital Markets Transactions

·    Completed the listing of the Company's common shares on the Aquis
Stock Exchange Growth Market ("AQSE"), a UK-based multilateral trading
facility for entrepreneurial companies seeking visibility and access to growth
capital in Europe.  This dual-listing was successfully completed and the
Company's common shares began trading on the AQSE on 10 August 2021.

·    Concurrent with the dual-listing of the Company's common shares on
the AQSE, an equity financing was successfully completed on 10 August 2021,
raising proceeds of US$10.3 million, to be used for general corporate purposes
and to complete several strategic acquisitions.

 

Completed Acquisitions

·    The first of these acquisitions was completed on 19 August 2021, when
Yooma acquired UK market-leader Vitality CBD Ltd. (https://vitalitycbd.co.uk/)
, a distributer of CBD products, including oils and sprays in a wide range of
flavours and strengths, edibles, and a specially developed and formulated
range of CBD skin care cosmetic products.

·    On 30 September 2021, Yooma completed the acquisition of Big Swig,
Inc. (https://bigswigwater.com/) , a US-based specialty drinks business with
unique and inventive flavours which is sold through major retail partners
including Whole Foods and HEB, as well as Circle K and independent convenience
stores.

 

Operational Highlights:

·    MYO Plant Nutrition (https://www.myoplantnutrition.com/) CBD products
were launched on Amazon UK as part of Amazon's selective CBD Pilot Programme.

·    Blossom CBD (https://www.blossomswiss.com/) skincare brand was
relaunched, including nine new SKUs with a focus on expert holistic skincare.
 The brand achieved key listings into world-renowned Selfridges and John Bell
& Croyden, which holds the Royal Warrant as Pharmacists to Her Majesty the
Queen.

·    Vitality CBD products continue to achieve premium rankings on Amazon
UK for CBD search results, and significant quarter-over-quarter revenue
growth.

·    Greenleaf launched its hemp protein brand What the Hemp!
(https://www.wth.bio/) in France's leading grocery retailer Casino, with 12
SKUs available in-store at a total of 414 Casino locations.

·    Socati Corp (https://socati.com/) . (https://socati.com/) ("Socati")
announced a collaboration with Impact Naturals on a new line of CBD products
designed to uniquely configure CBD and other cannabinoids for better and
faster absorption into the blood.  It contains formulations of CBD with other
cannabinoids, alongside ingredients including American Ginseng, Ginkgo Biloba,
and Melatonin.

 

Post period-end Highlights

 

Completed Acquisitions

·    On 2 October 2021, Yooma completed the acquisition of Vertex Co.,
Ltd., a wellness products company in Japan with sales through major home
shopping networks (QVC, Nihon-TV and Fuji-TV), as well as various ecommerce
channels (Rakuten, Yahoo Shopping and the company's Shop-V platform).

·    Yooma, through its subsidiary Socati, completed the acquisition of N8
Essentials LLC on 13 October 2021, adding downstream manufacturing
capabilities for consumer finished products, a significant channel that has
been underserviced, and providing Socati access to a broader segment of the US
CBD market.

 

Operational Highlights

·    Vitality CBD completed a 300-store launch in ASDA, one of Britain's
leading retailers, including 17 of Vitality's well-being and active CBD
products in ASDA's vitamin aisles and in-store pharmacies.  Vitality CBD is
now the most extensive CBD product range in ASDA.

·    Socati completed an order for CBD stick packs; a beverage additive
representing a product line extension which will be launched at retail by
Socati's customer in early 2022.

·    Big Swig accelerated its promotional activity with grocery retailer
HEB, achieving an increase in sales volumes of 20% over the same period in the
prior year; the company is also partnering with OCS Brands to enter the
convenience services channel nationwide.

·    Yooma completed the rebuild and integration of its UK e-commerce
sites including hosting, management and fulfilment of all UK brands under one
e-commerce business division, allowing the Company to quickly scale existing
and future UK and European brands.

·    Vitality CBD achieved commercial sales outside of UK/EU with
customers in Poland and Brazil.  The company was also selected for a pilot
CBD launch on eBay in the UK.

 

Selected Financial Highlights (Q3 2021)

 

During the Reporting Period, the Company generated revenues of US$2.1 million,
but experienced net and comprehensive losses of US$2.6 million, reflecting
cost of sales of US$1.6 million and expenses of US$3.2 million, relating
primarily to the integration of previously acquired businesses into Yooma's
global platform, expenses incurred in connection with capital raising
activities and the AQSE dual-listing, and business and administrative expenses
incurred by the Company's operating divisions.

 

 

 

All sums are in US$.

                                                                            For the three  For the three  For the nine   For the nine

                                                                            month period   month period   month period   month period

                                                                            ended          ended          ended          ended
                                                                            30 September   30 September   30 September   30 September
                                                                            2021           2020           2021           2020
 Revenue                                                                    2,128,620      -              4,909,637      -

 Cost of sales                                                              (1,568,512)    -              (3,776,668)    -
 Gross profit                                                               560,107        -              1,132,969      -

 Expenses
 Depreciation and amortisation                                              177,804        -              409,327        -

 Consulting fees                                                            130,767        308,437        521,456        460,277
 Professional fees                                                          363,172        217,575        1,264,899      325,960
 Listing expense                                                            -              -                             -

                                                                                                          960,725
 Stock-Based compensation                                                   574,839        -              674,441        -
 Office and administrative                                                  1,961,692      224,788        5,447,392      458,168
                                                                            3,208,273      750,770        9,278,240      1,244,405

 Net loss before other income and expenses                                  (2,648,166)    750,770)       (8,145,270)    (1,244,405)
                                                                                           -

 Assets write-off                                                           -                             (134,810)      -
 Other income                                                               14,402         20,216         77,250         37,715

 Net loss and comprehensive loss for the period                             (2,633,763)    (730,554)      (8,202,830)    (1,206,690)
 Loss per share - basic and diluted:                                        (0.03)         (0.02)         (0.14)         (0.05)

 Weighted average number of common shares outstanding - basic and diluted:  78,389,781     33,831,330     60,310,551     24,468,618

 

Yooma Outlook

Yooma continues to integrate its existing operations with its recently
completed acquisitions to leverage the global opportunities in the wellness
and CBD sectors.  The Company is achieving cost synergies and exploring new
sales channels for its existing products through its buy-and-build strategy.
 Yooma has achieved significant revenue growth and is forecasting revenue for
Q4 2021 in excess of US$5.0 million, or a US$20.3 million annualised run rate.

 

 

 

 Revenue (US$)  H1 2021 (Actual)  H2 2021 (Estimated)
                2,780,937         7,203,620

 

Investor Meet Company Presentation

 

Yooma will be presenting via the Investor Meet Company platform on Thursday, 2
December 2021 at 14.00hrs (GMT). The presentation will give existing and
prospective investors the opportunity to listen to management discuss the
Group's Q3 Trading Update, Yooma's investment proposition, and the CBD and
wellness market's potential.

 

The presentation will be hosted by Jordan Greenberg, Chief Executive and
Phillip Glyn, Commercial Director of Vitality CBD, a market-leading UK CBD
company. Questions can be submitted pre-event via your Investor Meet Company
dashboard up until 09.00hrs (GMT) the day before the meeting or at any time
during the live presentation.

 

To sign up to the presentation via Investor Meet Company please click the
following link:
https://www.investormeetcompany.com/yooma-wellness-inc/register-investor
(https://www.investormeetcompany.com/yooma-wellness-inc/register-investor)

 

Investors who already follow Yooma Wellness Inc. on the Investor Meet Company
platform will automatically be invited.

 

About Yooma Wellness Inc.

Yooma's mission is to build a vertically-integrated global leader in the
manufacturing, marketing, distribution, and sale of wellness products
including hemp seed oil and hemp-derived and cannabinoid (CBD) ingredients.
The company leverages strategically curated sales channels and ecommerce
networks to deliver a diverse mix of wellness products through operating
subsidiaries in the United States, United Kingdom, France and Japan. Learn
more at www.yooma.ca (https://www.yooma.ca) .

- Ends -

 

The directors of the Company accept responsibility for the contents of this
announcement.

 For further information, please contact:
 Yooma Wellness Inc.                                    Via Buchanan

 Jordan Greenberg, CEO                                  Tel:+44 (0) 20 7466 5000

 AQSE Corporate Adviser:                                Tel: +44 (0) 20 7469 0930

 Peterhouse Capital Limited                             Tel: +44 (0) 7990 139 093

 Guy Miller / Mark Anwyl

 Media Enquiries (UK / Europe):

 Buchanan                                               Tel: +44 (0) 20 7466 5000

 Henry Harrison-Topham / Jamie Hooper                   www.buchanan.uk.com (http://www.buchanan.uk.com/)

 Ariadna Peretz / George Beale

 yooma@buchanan.uk.com (mailto:yooma@buchanan.uk.com)

 

 

 

Notice regarding Forward Looking Statements

All information included in this press release, including any information as
to future financial or operating performance and other statements of Yooma
that express management's expectations or estimates of future performance or
activities, other than statements of historical fact, constitute
forward-looking information or forward-looking statements (collectively,
"forward-looking statements") within the meaning of applicable securities laws
and are based on expectations, estimates and projections as of the date
hereof. Forward-looking statements are included for the purpose of providing
information about management's current expectations and plans relating to the
future. Wherever possible, words such as "will", "intend", "believe",
"future", "go forward", "to become", "pursuit", "pursuing", "potential",
"plan", "to enter", "continues to" or the negative of these words or other
variations thereof, have been used to identify such forward-looking
information. Specific forward-looking statements include, without limitation,
all disclosure regarding future results of operations, economic conditions and
anticipated courses of action, including statements about Yooma's mission and
strategic plan; revenue forecasts under the "Yooma Outlook" section,
commercial partnerships and product launches; and the nature and focus of its
business going forward.

There are many risks and uncertainties that may affect forward-looking
statements including, among others, regulatory risk in each jurisdiction in
which Yooma does or intends to operate; the uncertainties, effects of and
responses to the COVID-19 pandemic; reliance on licenses; competition;
dependence on senior management and key personnel; general business risk and
liability; regulation of the CBD industry; changes in laws, regulations and
guidelines; compliance with laws; limited operating history; unfavourable
publicity or consumer perception; product liability, risks related to
intellectual property; product recalls; difficulties with forecasts;
management of growth; litigation; Yooma's ability to effectively integrate
existing and future acquisition targets into its platform; the effects of
competition in the industry; the requirement for increasingly innovative
product solutions and service offerings; trends in customer growth;
sufficiency of current working capital to support future operating and working
capital requirements; and other matters which are beyond the control of Yooma.
Although the forward-looking statements contained herein reflect management's
current beliefs and reasonable assumptions based upon information available to
management as of the date hereof, Yooma cannot be certain that actual results
will be consistent with such forward-looking information. Yooma cautions you
not to place undue reliance upon any such forward-looking statements. Yooma
disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise,
except as required by applicable law. Nothing herein should be construed as
either an offer to sell or a solicitation to buy or sell securities of Yooma.

 

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