REG - Yooma Wellness Inc. - Yooma Wellness Reports Results for Q3 2022
30/11/2022 07:00
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RNS Number : 9615H Yooma Wellness Inc. 30 November 2022
30 November 2022
Yooma Wellness Inc.
('Yooma' or the 'Company' or the 'Group')
Yooma Wellness Reports Results for Third Quarter of 2022
Yooma Wellness Inc. (CSE: YOOM, AQSE:YOOM), a Toronto-based global wellness
platform that develops and markets a portfolio of wellness brands, today
released its interim financial statements (the 'Financial Statements') for the
three and nine-month periods ended 30 September 2022 and 30 September 2021.
A summary of Yooma's financial highlights during the reporting period are set
out below. 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) .
Jordan Greenberg, CEO at Yooma, commented: "We are continuing to see solid
growth from our operations in Europe and Japan, with revenues up 14% this
quarter over the same period last year. At the same time, we are seeing a
significant reduction in expenses year-over-year as the cost-cutting measures
we began implementing earlier this year are realised. In the meantime, we
are continuing to explore different opportunities for a sale of assets,
M&A or other strategic transactions and will update the market on the
results of those efforts in due course."
Selected Financial Highlights (Q3 2022)
During the three-month period ended 30 September 2022, the Company generated
revenues of US$2.4 million (up 14% from US$2.1 million in Q3 2021) and
experienced comprehensive gains of US$0.4 million (up 114% from the US$2.6
million of comprehensive losses experienced in Q3 2021). The Company's
performance during the quarter reflects, among other things, cost of sales of
US$1.8 million (up 17% from US$1.6 million in Q3 2021), expenses of US$1.3
million (down 61% from US$3.2 million in Q3 2021) and a foreign currency
translation of US$1.0 million in the Company's favour.
The year-over-year increase in revenues and cost of sales is driven primarily
by the impact of acquisitions completed by Yooma in the second half of 2021,
including most notably the acquisitions of Vitality CBD in the UK and of
Vertex Co., Ltd. in Japan. The significant decrease in year-over-year
expenses is the result of reduced transactional activity during the third
quarter of 2022 as compared to the same period last year, as well as the
shut-down of some of Yooma's less profitable operations in the United States
and ongoing efforts to rationalize and streamline Yooma's global platform.
All amounts in USD. For the three month period ended For the three month period ended For the nine month period ended For the nine month period ended
30 September 30 September 30 September 30 September
2022 2021 2022 2021
Revenue $ 2,424,756 $ 2,128,620 $ 8,913,501 $ 4,909,637
Cost of sales (1,828,896) (1,568,512) (6,567,368) (3,776,668)
Gross profit $ 595,860 $ 560,108 $ 2,346,133 $ 1,132,969
Expenses
Depreciation and amortization $ 33,453 $ 177,804 $ 479,155 $ 409,327
Consulting fees 125,750 130,767 424,945 521,456
Professional fees 104,831 363,172 437,734 1,264,899
Listing expense - - - 960,725
Stock-Based compensation 45,723 574,839 408,139 674,441
Loss on disposition of capital assets - - 981,904 -
Assets write-off - - - 134,810
Debt forgiveness 44,585 - (392,971) -
Fair value adjustment on discounted purchase price - - 328,412 -
Office and administrative 920,386 1,961,692 4,804,717 5,447,390
Liability warrants fair value adjustment (13,085) (155,867)
- -
Other income (11,224) (14,402) (97,967) (77,250)
1,250,419 3,193,872 7,218,201 9,335,798
Deferred Income tax recovery 421,761
29,738 - -
Net loss (624,821) $ (2,633,765) $ (4,450,306) $ (8,202,830)
Other comprehensive gain (loss)
Foreign currency translation 1,163,883 699,183
- -
Comprehensive gain (loss) $ 539,062 $ (2,633,765) $ (3,751,123) $ (8,202,830)
Loss per share - basic and diluted: $ (0.01) $ (0.03) $ (0.04) $ (0.14)
Weighted average number of common shares outstanding - basic and diluted: 100,859,744 78,389,781 100,859,744 60,310,551
About Yooma Wellness Inc.
Yooma's mission is to build a global leader in the 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 Kingdom, France and
Japan. Learn more at www.yooma.ca (http://www.yooma.ca) .
The directors of the Company accept responsibility for the contents of this
announcement.
For further information, please contact:
Yooma Wellness Inc. Tel: + 1 512 823 1678
Jordan Greenberg, CEO jgreenberg@yooma.ca (mailto:jgreenberg@yooma.ca)
AQSE Corporate Adviser:
Peterhouse Capital Limited Tel: +44 (0) 20 7469 0930
Guy Miller / Mark Anwyl Tel: +44 (0) 7990 139 093
Media Enquiries Tel: +44 (0) 20 7466 5000
Buchanan yooma@buchanan.uk.com (mailto:yooma@buchanan.uk.com)
Henry Harrison-Topham / Jamie Hooper /
George Beale
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", "plan", "hopeful", "continuing 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; its ongoing review of strategic alternatives; and the nature
and focus of Yooma's 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; the
availability of financing to support future growth and working capital
requirements, transactional activity and operations; 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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