SLANG Products Available in Ontario, Canada
Press Release

SLANG Products Available in Ontario, Canada

Toronto, Ontario--(Newsfile Corp. - December 21, 2020) - SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that its O.pen and Firefly Mini line of products are now available in Ontario. The Ontario Cannabis Store, the province's sole wholesale distributor of adult-use cannabis, has listed O.pen vaporizer cartridges and Firefly Mini disposable vaporizers in its catalog available for purchase by licensed retailers and online, through the Ontario Cannabis Store website. "We are pleased to be able to offer our flagship O.pen and Firefly brands to consumers in Ontario," said SLANG President & CEO Chris Driessen. "After a successful launch of the O.pen line in British Columbia, we are excited to continue that momentum across Canada into Ontario, with O.pen and the Firefly Mini." O.pen is considered to be the #2 best-selling cannabis brand of all time in the United States by analytics firm BDSA since it began tracking legal sales in 2014. Firefly is an innovator in dry flower vaporizer technology, and recently extended that technology expertise to concentrate vaporizers. "As an operator in the Canadian market since 2013, I believe this launch is timed well with the maturing-market dynamics we're now seeing, and in which SLANG excels," added Peter Miller, SLANG Executive Chairman. "We are encouraged by the ongoing reduction of commodity-oriented producers, and the emergence of highly discerning consumers. We will strive to earn our place in the market through a respect for those consumers and a focus on their experience." SLANG-branded products are manufactured and distributed in the Canadian market by its investee company, Agripharm Corp. ("Agripharm"). Owned in partnership with Canopy Growth and Green House Seed Co., Agripharm was one of the first licensed cannabis producers in Canada, in operation since 2014. In 2015 it became the first licensed producer in the country to make use of supercritical CO2 extraction methods. SLANG looks forward to bringing more products to the Canadian market with Agripharm, including new live resin products similar to those recently launched successfully by the Company in Colorado. SLANG's O.pen and Firefly products are now available for purchase, online, and at retailers across Ontario. Media and Investor inquiriesInvestors@SLANGww.com About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com. Forward-Looking Statements This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's prospects in Ontario and other Canadian markets. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019 and nine months ended September 30, 2020, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Third Party Information This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
SLANG Partners With Flower By Edie Parker to Manufacture and Distribute Cannabis Products
Press Release

SLANG Partners With Flower By Edie Parker to Manufacture and Distribute Cannabis Products

Toronto, Ontario--(Newsfile Corp. - December 22, 2020) - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that it has entered into a strategic partnership to manufacture and distribute cannabis products for Flower by Edie Parker. Founded in 2010 by Brett Heyman, Edie Parker gained global recognition for its high-quality handbags, accessories and home décor. In 2019, the brand expanded into the cannabis and cannabis accessories category under the namesake Flower by Edie Parker. To date, Flower by Edie Parker continues to usher in a new generation of cannabis users with its artisanal acrylic, ceramic and hand blown glass accessories. The collection features a rotating curation of stash jars, lighters, ashtrays, grinders, bongs, blunt tips, pipes, rolling papers, rolling trays and a distinctly canna-friendly take on Heyman's signature acrylic bags. Friends and supporters of the brand include Kasey Musgraves, Gigi Hadid, Demi Lovato, Laverne Cox, Kaia Gerber, Tracee Ellis Ross, Kylie Jenner, Gwyneth Paltrow, Charlie XCX, Busy Philipps, and many more. Earlier this year they established the Edie Parker Foundation, a 501(c)(3), which focuses predominantly on women and children whose lives have been disproportionately affected by the enforcement of cannabis laws. To date, the Foundation has supported vulnerable communities through partnering with such organizations as the Women's Prison Association, The Bail Project, The Last Prisoner Project and, during the pandemic, Good Plus, City Meals on Wheels, No Kid Hungry and Feeding America. SLANG, through its network partners, will produce branded products for Edie Parker through a white labeling agreement. The formal partnership builds upon a recent order for Edie Parker-branded O.penVAPE batteries. "We are proud to partner with a well-regarded brand like Edie Parker which has embraced the potential of cannabis products to grow its business," said SLANG President & CEO Chris Driessen. "Offering our best-in-class manufacturing and distribution capabilities to third parties represents an exciting avenue of growth for SLANG. We're seeing a proliferation of brands seeking to leverage SLANG's network to expand their footprint in a rapid and cost-effective manner, and we very much welcome that opportunity." "Flower by Edie Parker is the first mainstream brand to fully merge the worlds of Fashion and Flower. It is our goal that individuals engage with cannabis like any other brand that sparks joy in their lives," shared Brett Heyman, Founder and Creative Director of Edie Parker. "The SLANG team manages a portfolio of some of the best-known brands in cannabis and we are enthusiastic about growing with them." The SLANG-manufactured products are expected to launch in Colorado in early 2021, with the potential to expand into additional markets over time. Investor and Public Relations Services The Company also announces that it has engaged KCSA Strategic Communications ("KCSA") to provide investor relations and public relations services effective as of January 1, 2021. KCSA is a fully integrated communications consultancy with a creative and strategic approach to public relations, investor relations and social media. SLANG's contract with KCSA commences with an initial 6-month term, for a monthly fee of USD$13,500, and continues thereafter until SLANG or KCSA provides 90 days written notice of intention to cease. KCSA does not currently hold an equity interest in SLANG. Media and Investor inquiriesInvestors@SLANGww.com About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com. Forward-Looking StatementsThis news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the potential expansion of the Company's third-party manufacturing agreements into additional markets. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019 and six months ended June 30, 2020, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Third Party InformationThis press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release. ###
SLANG Announces Closing of Pleasant Valley Ranch Acquisition
Press Release

SLANG Announces Closing of Pleasant Valley Ranch Acquisition

Toronto, Ontario--(Newsfile Corp. - December 29, 2020) - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that it has closed its previously announced acquisition (the "Acquisition") of Colorado-licensed cannabis cultivator Pleasant Valley Ranch, LLC ("Pleasant Valley"). The Company acquired Pleasant Valley for a non-material amount of cash and 500,000 restricted voting shares of the Company. "The closing of Pleasant Valley represents another major step forward as we advance SLANG's position as a main provider of well-known brands in the U.S. and is another important accomplishment in our strategy to consolidate key supply-chain assets in core markets," commented SLANG President & CEO Chris Driessen. "We already have a strong presence in Colorado, with our O.pen product ranked as the #1 vape cartridge in the state. This acquisition will support even further growth of our market-leading brand portfolio in the state of Colorado, as we continue to leverage strong partnerships to achieve national prominence with our brands." Pleasant Valley, located in Carbondale, CO, specializes in high-quality, organically grown cannabis strains that thrive in high altitude, mountainous environments. Pleasant Valley has 1,600 square feet of greenhouse cultivation area, and a five-acre outdoor facility at an elevation of approximately 7,500 feet that produces an authentic, naturally cultivated product using snowmelt water. Pleasant Valley has a capacity of 3,600 plants and produces approximately 4,800 pounds annually with projections to potentially double its capacity in 2021. Pleasant Valley has been a key supplier of raw materials for SLANG-branded concentrate and edibles products in Colorado. By consolidating this asset, the reduced cost of those raw materials is expected to directly benefit the unit economics of SLANG products, and the Company's overall gross margin. SLANG has committed to developing community partnerships with local institutions that enhance the social equity and environmental sustainability components of its Colorado footprint, further aligning itself with the values of Colorado and its cannabis industry. About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. For more information, please visit www.slangww.com. Forward-Looking Statements This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's proposed acquisition of Pleasant Ranch and the Company's production and distribution of cannabis products in Colorado. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019 and six months ended June 30, 2020, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Third Party Information This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. Media and Investor inquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLNG@kcsa.com
Cannabis Company to Create 43 New Jobs With Colorado Expansion
Press Release

Cannabis Company to Create 43 New Jobs With Colorado Expansion

SLANG Worldwide will create 43 new cannabis industry jobs in Colorado by expanding production of consumer packaged goods, the Office of Economic Development and International Trade announced on Monday. SLANG’s Denver’s office, which is also their U.S. headquarters, employs 75 people. The 43 new positions in Denver and Boulder include lab technicians, project managers and production-related jobs. The governor’s office indicated the average salary will be $75,000. Read More On Colorado Politics
Cannabis Company to Expand Its Colorado Production Operations
Press Release

Cannabis Company to Expand Its Colorado Production Operations

Slang Worldwide, a cannabis consumer-packaged-goods company, is expanding its operations in Colorado and plans to create 43 new jobs. The Colorado Office of Economic Development and International Trade said in a statement Monday that the company has 75 employees in its Denver office, its U.S. headquarters, and in Boulder, which will expand. “Colorado’s cannabis industry offers strong growth potential and this move speaks volumes about our state’s cannabis industry and community as a whole,” Gov. Jared Polis said. Read More On The Denver Post
Colorado's First Marijuana Business Tax Incentive Fuels Canadian Firm's Expansion
Press Release

Colorado's First Marijuana Business Tax Incentive Fuels Canadian Firm's Expansion

Canadian cannabis investment firm Slang Worldwide will significantly expand operations in Colorado, fueled by the state's first tax incentive offered to a marijuana company. Read More On Westword
SLANG Worldwide Chooses Colorado, the Epicenter of Cannabis, for Expansion
Press Release

SLANG Worldwide Chooses Colorado, the Epicenter of Cannabis, for Expansion

Toronto, Ontario--(Newsfile Corp. - December 14, 2020) - SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods company with a diversified portfolio of popular brands, is pleased to announce that is has selected Colorado for its expanded production. In an announcement made today by Colorado Governor Jared Polis and Colorado's Office of Economic Development and International Trade, Governor Polis stated, "Colorado continues to be the epicenter of cannabis, so we're excited by the Company's smart decision to relocate to our beautiful state. Colorado's cannabis industry offers strong growth potential, and this move speaks volumes about our state's cannabis industry and community as a whole." In the same announcement, Betsy Markey, Executive Director of Colorado's Office of Economic Development and International Trade noted, "SLANG's selection of Colorado marks the next step of responsible growth within Colorado's cannabis industry, a priority area for our office and this administration. We are encouraged by the growth potential of this vertical. SLANG provides additional linkages between Colorado suppliers and broader consumer markets while growing our production and R&D profile." The full announcement can be found here: Press Releases | Colorado Governor Jared Polis. SLANG's President and CEO, Chris Driessen comments, "We applaud Governor Polis and the Office of Economic Development and International Trade for once again being leaders in cannabis policy. Colorado was already a core market for us, so with these incentives from the state it only made sense for us to double down on our commitment to the place that so many of us, including myself, call home." It is expected that the project will create 43 new jobs with an average annual wage of $75,000. These new jobs are expected to include lab technician, project management and other production-related positions. SLANG currently employs 75 people in their existing offices in Denver, which serves as their U.S. Headquarters and Boulder which will now be expanded. The Economic Development Commission voted at its September 17, 2020 meeting to approve up to $584,399 in job-growth incentive tax credits over the next eight years. Colorado is a leader in the cannabis industry, but this is the first time Colorado has offered performance-based incentives to a cannabis company. SLANG has committed to developing community partnerships with local institutions that enhance the social equity and environmental sustainability components of its Colorado footprint, further aligning itself with the values of Colorado and its cannabis industry. Colorado competed with California and Oregon for the additional jobs and facility expansion. For Further Information:SLANG media and investor inquiries: Investors@SLANGww.com. About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com. About Colorado Office of Economic Development and International Trade The Colorado Office of Economic Development and International Trade (OEDIT) works with partners to create a positive business climate that encourages dynamic economic development and sustainable job growth. Under the leadership of Governor Jared Polis, we strive to advance the State's economy through financial and technical assistance that fosters local and regional economic development activities throughout Colorado. OEDIT offers a host of programs and services tailored to support business development at every level including business retention services, business relocation services, and business funding and incentives. Our office includes the Global Business Development division; Colorado Tourism Office; Colorado Outdoor Recreation Industry Office; Colorado Creative Industries; Business Financing & Incentives division; the Colorado Small Business Development Network; Colorado Office of Film, TV & Media; the Minority Business Office; and the Colorado Innovation Network. Learn more at www.choosecolorado.com. Forward-Looking Statements This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management's discussion and analysis for the quarter ended September 30, 2020, as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
SLANG Worldwide Announces Third Quarter 2020 Financial Results
Press Release

SLANG Worldwide Announces Third Quarter 2020 Financial Results

Company secures $5 million equity financing from existing institutional shareholders to strengthen balance sheet and enhance continued growth Q3 2020 revenue of $7.9 million increased 73% sequentially over Q2 2020 revenue of $4.6 million, driven by continued strong demand across the Company's core and emerging markets. Reported positive Adjusted EBITDA for the first time as a public company. Company expects strong performance to continue through the fourth quarter of 2020. Concurrently announced a $5.0 million non-brokered private placement, led by the Company's largest institutional investors; structured with no debt or warrants to limit dilution, strengthening balance sheet while accelerating growth and momentum. Toronto, Ontario--(Newsfile Corp. - November 30, 2020) -  SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today released financial results for the three and nine months ended September 30, 2020. Additionally, the Company announced a non-brokered private placement for aggregate gross proceeds of $5.0 million. All figures in this press release are stated in Canadian dollars unless otherwise noted. "Demand in our core markets has not only recovered to the pre-COVID level, but surpassed it," said SLANG President & CEO Chris Driessen. "We are in a better position than ever to capitalize, with an ever-growing portfolio of products and brands and the addition of new strategic partners in key emerging markets. Most importantly, our recent acquisitions create opportunities for meaningful further growth in revenues and margins." Key Financial and Operational Highlights Q3 2020 Financial Highlights Q3 2020 revenue of $7.9 million increased by 73% compared to $4.6 million in Q2 2020. The primary driver of sequential growth was a rebound in demand in the Company's core markets of Colorado and Oregon. Similar strength in the Company's emerging markets also contributed to sequential growth, as did the successful launch of new products. Gross profit of $4.0 million (50% gross margin) in Q3 2020 increased by 40% over the $2.8 million (62% gross margin) reported in Q2 2020. The gross margin percentage declined compared to Q2 2020 primarily due to normal fluctuations in product mix. Adjusted EBITDA of $57,000 was the Company's first-ever EBITDA-positive quarter and compares to an adjusted EBITDA loss of $1.8 million in Q2 2020. The improvement reflects the realization of cost reductions from streamlining initiatives implemented over the past several quarters. $5.5 million of cash and cash equivalents at September 30, 2020, compared to $11.1 million at June 30, 2020. Subsequent to quarter-end, the Company secured an additional $5.0 million through a non-brokered private placement financing anticipated to close imminently. "We are very pleased to announce this financing, which will support near-term growth opportunities and help the business maintain its current momentum," said SLANG Executive Chairman Peter Miller. "The structure and terms of this financing demonstrate a strong alignment of interests between SLANG and its largest institutional shareholders." "We continue to be optimistic about the Company's trajectory as our previously announced acquisitions close and mark the beginning of our transformation into a plant touching business. The consolidation of these supply chain assets in our core markets of Colorado and Oregon is expected to have a positive impact on both revenue and profit in subsequent quarters," added Mr. Driessen. Operational Highlights Path to Profitability: The Company is accelerating down the path to profitability as evidenced by its first cash flow positive month in June and now its first positive adjusted EBITDA quarter. As supply chain asset acquisitions close and related financial results are recognized, it is expected that the Company's financial performance will continue to improve in regard to profit and revenue realized from the sale of cannabis in core markets. Strategic Partnerships & Emerging Market Expansion: The Company is continuing to recalibrate or strengthen relationships in emerging markets to provide for sustainable and profitable growth. Recent highlights include: California: The Company entered into a Strategic Partnership with Natura Life + Science ("Natura"). This partnership allows the Company to reenter the California market in a profitable way. The size and scope of the infrastructure at Natura's Sacramento facility allows for multiple product lines to be produced in volumes sufficient to support the California market, the largest in the United States. Products, beginning with District Edibles (the previous best-selling gummy in CA), are expected to be available in Q1 2021. Massachusetts: The Company entered into a Strategic Partnership with Trulieve Cannabis Corp. ("Trulieve") to supply branded products to the MA market. This is the second market in which SLANG and Trulieve will partner, building on the success that both companies have enjoyed in the Florida market. Massachusetts will mark the first time that both companies can partner on wholesale initiatives, which is a SLANG core competency. Products are expected in summer 2021. Florida: SLANG products continue to be sold at all Trulieve locations in Florida. The Company expects District Edibles gummies in both sweet and sour formulations to be available in Q4 2020. Canada: SLANG's minority-owned licensed producer, Agripharm Corp. began selling branded products in British Columbia and also signed a supply agreement with the Province of Ontario. Michigan: SLANG's Strategic Partnership with Gage Cannabis is expected to bring branded products to the Michigan market in Q2 2021. Oklahoma: SLANG products are now available in over 50 stores in the Oklahoma market. The Company expects District Edibles gummies in both sweet and sour formulations to be available in Q4 2020. Product Diversification: Continuing to bring new product SKUs to market in 2020 through the launch of additional brands in new product verticals and the expansion of existing product lines, the Company introduced Bakked Gyro live resin dabbing solution in October, O.penVAPE-branded Craft RESERVE Live Resin cartridges in August, and Cookies-branded "Terp Sauce" cartridges in July, all in the Colorado market. Brand Leadership: SLANG's brands continued to earn market-leading positions in its core markets in the third quarter of 2020. Highlights include: Open.VAPE ranked as the #1 vape cartridge in Colorado and #13 in Oregon; Firefly Mini was the #4 disposable vaporizer in Colorado; Bakked was the #4 dabbable distillate in Oregon and #5 in Colorado; District Edibles was the #14 gummy in Colorado; Pressies was the #4 pill in Colorado. (Source: BDSA.) Key Performance Indicators: 597,000 Branded Units sold in Q3 2020, an increase of 21% over Q2 2020; 57 million Branded Servings sold in Q3 2020 (average of approximately 632,000 servings per day), an increase of 30% compared to Q2 2020. Corporate Development Update In August 2020, the Company's application for suitability was approved by the Colorado Department of Revenue's Marijuana Enforcement Division, enabling the Company to execute on its core market strategy of consolidating its Colorado supply chain through the acquisition of "plant-touching" operations in the state. On September 3, 2020, the Company acquired Peoria Partners LLC ("Peoria"), a Colorado-licensed manufacturer and distributor of cannabis products. On September 29, 2020, the Company announced that it had entered into an agreement to acquire Colorado-licensed cannabis cultivator Pleasant Valley Ranch, LLC ("Pleasant Valley"). The Company anticipates that ownership of a cultivation operation will provide greater assurance of a supply of raw materials in the growing Colorado market, while also reducing its input costs and thereby improving gross margins. On October 1, 2020, the Company completed the key step in the consolidation of its Oregon supply chain with the closing of the previously announced acquisition of Lunchbox Global, LLC ("LBA"). Outlook "We are starting to see the results of our key strategic initiatives over the past year, highlighted by a stronger focus on our core markets, a strengthening of partnerships in our emerging markets, product innovation and a realignment of our cost structure," said SLANG President & CEO Chris Driessen. "We expect to build on our recent momentum in the fourth quarter and into 2021. Our recent and proposed acquisitions in our core markets will enable us to capture a much greater share of unit economics, and we expect this to deliver significant value to our stakeholders." The Company anticipates that the market strength experienced in the third quarter will continue through the fourth quarter of 2020. In addition, the Company expects to realize incremental growth in revenue and gross profit as a result of the successful execution of its strategy of consolidating the supply chain and shifting towards a wholesale model in its core markets. In the fourth quarter of 2020, the Company will recognize a full quarter of results from its Peoria and LBA acquisitions. Similarly, in fiscal 2021, contingent upon the completion of the proposed acquisitions of Allied Concession Group ("ACG") and Pleasant Valley, the Company anticipates recognizing further incremental revenue and gross profit in its core markets. Announcement of $5.0 million Private Placement SLANG has announced today a non-brokered private placement financing (the "Financing") for aggregate gross proceeds of approximately $5 million. Pursuant to the Financing, the Company will issue 18,518,518 common shares ("Shares") at a price of $0.27 per Share. Investors include the Company's longest-standing, and largest institutional investors. The terms and structure of this financing demonstrate the investors' ongoing support and long-term view on the business. The Company intends to use the proceeds of the private placement to support strategic growth opportunities. The Financing is expected to close imminently. Conference Call The Company will hold a conference call at 10:00 a.m. EST on Monday, November 30, 2020 to discuss the Company's Q3 2020 financial results. Dial-in:              833.529.0214 (toll free) or (+1) 647.689.6824 (local or international calls) Webcast:          A live webcast can be accessed from the Investors section of Company's website at www.slangww.com or at this link. A replay of the webcast will be archived on the Company's website for one year. Q3 2020 Financial Review The consolidated financial statements were prepared in accordance with IFRS. The following is selected presentation of the Income Statement for the quarters ended September 30, 2020 and September 30, 2019:   Three Months Ended: September 30, 2020 September 30, 2019(Amended) (In thousands except per share data and percentages) CDN CDN NET OPERATING REVENUE $ 7,902 $ 9,314 Cost of goods sold 3,939 4,723 GROSS PROFIT 3,963 4,591 GROSS PROFIT MARGIN 50% 49% Operating expenses 9,692 15,058 OPERATING (LOSS) (5,729) (10,467) Other items (Impairment, FV adjustment, FX, gains/losses, deferred tax recovery, etc.) 218 (14,640) TOTAL COMPREHENSIVE INCOME / (LOSS) (5,947) 4,173 EARNINGS PER SHARE     Basic $ (0.02) $ 0.01 Diluted $ (0.02) $ (0.04) Gross Margin The Company generated a 50% gross margin in the quarter ended September 30, 2020, up slightly from a gross margin of 49% in Q3 2019 despite the decrease in revenue. The margin improvement was driven in part by an increasing emphasis on higher-margin licensing sales. Below is the gross profit margin from operations for the quarters ended September 30, 2020 and September 30, 2019:   Three Months Ended:   September 30, 2020 September 30, 2019 (In thousands except per share data and percentages) CDN CDN Net Operating Revenue $ 7,902 $ 9,314 Cost of goods sold 3,939 4,723 Gross Profit 3,963 4,591 Gross Profit Margin 50% 49% Non-IFRS Measures EBITDA, Adjusted EBITDA, Branded Unit volume and Branded Servings volume are non-IFRS financial measures that the Company uses to assess its operating performance. EBITDA is defined as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense. Management defines Adjusted EBITDA as EBITDA adjusted for other non-cash items such as the impact of unrealized fair values, share based compensation expense, impairments, one-time gains and losses, and one-time revenues and expenses. See the heading "Operations Overview - Branded Volume" in the Company's management's discussion and analysis for the quarter ended September 30, 2020 (the "Q3 2020 MD&A") for a description of how each of Branded Unit volume and Branded Servings volume is calculated. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.   Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (In thousands except per share data and percentages) CDN CDN TOTAL COMPREHENSIVE INCOME / LOSS $ (5,947) $ 4,173 Adjustment to EBITDA (4,111) (4,950) ADJUSTED EBITDA 57 (1,622) See the Company's Q3 2020 MD&A for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG's financial statements and MD&A for the three months ended September 30, 2020 are available on SEDAR at www.sedar.com, and on the Company's Investor Relations website at www.slangww.com. Media and Investor inquiriesInvestors@SLANGww.com About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com. Forward-Looking Statements This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward looking statements in this news release include statements regarding the Company's expected performance in the fourth quarter of 2020, the distribution of the Company's products in emerging markets and the Company's proposed acquisitions of ACG and Pleasant Valley. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the Q3 2020 MD&A, as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Third Party Information This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release. ###
SLANG Worldwide Announces Preliminary Third Quarter 2020 Financial Results
Press Release

SLANG Worldwide Announces Preliminary Third Quarter 2020 Financial Results

Toronto, Ontario--(Newsfile Corp. - November 19, 2020) -  SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today issued preliminary, unaudited financial results for the three months ended September 30, 2020. All figures in this press release are stated in Canadian dollars unless otherwise noted. Preliminary Q3 2020 Financial Results(1) Revenue of $7.9 million in Q3 2020 increased by 73% compared to $4.6 million in Q2 2020. The primary driver of sequential growth was a rebound in demand in the Company's core markets of Colorado and Oregon, following the COVID-related shutdowns in the second quarter. Similar strength in the Company's emerging markets also contributed to sequential growth, as did the successful launch of new products. Adjusted EBITDA of $57,000 was positive for the first time since SLANG became a public company and represented an improvement over a loss of $1.6 million in Q3 2019 and a loss of $1.8 million in Q2 2020. Cost reductions from streamlining activities at SLANG and within the SLANG Network have resulted in approximately $10.5 million of annualized cost savings. "I am proud of the way our company has responded to the pressures we faced in the first half of the year," said SLANG President & CEO Chris Driessen. "In the third quarter, we capitalized on rapidly evolving market conditions while also reducing costs, leading to significant improvements in both revenue and EBITDA. I am particularly pleased with how we are tracking in regards to profitability and expect even greater momentum to build in subsequent quarters as our acquisitions close and we begin to recognize both revenue and profit from plant-touching operations." As previously announced, the Company expects to file complete financial results for the third quarter of 2020 the morning of November 30, 2020, followed by an investor conference call at 10:00 am EST. Non-IFRS Measures Adjusted EBITDA is a non-IFRS financial measure that the Company uses to assess its operating performance. Management defines Adjusted EBITDA as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense adjusted for other non-cash items such as the impact of unrealized fair values, share based compensation expense, impairments, one-time gains and losses, and one-time revenues and expenses. This data is furnished to provide additional information and is a non-IFRS measures and does not have any standardized meaning prescribed by IFRS. The Company uses this non-IFRS measure to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use this non-IFRS measure in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities. There are important components of Operating Income / (Loss) that are currently in process of determination. Therefore, a reconciliation of the range of Adjusted EBITDA to Operating Income / (Loss) cannot be provided at this time. A full reconciliation of Adjusted EBITDA to Operating Income / (Loss) will be provided when actual results are released. See the Company's management's discussion & analysis for the three and six months ended June 30, 2020 (the "Q2 MD&A") available on SEDAR at www.sedar.com, and on the Company's Investor Relations website at www.slangww.com for additional discussion of non-IFRS measures and their reconciliations. Media and Investor inquiriesInvestors@SLANGww.com About SLANG Worldwide Inc. SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com. Notes: (1) These preliminary and unaudited financial results are subject to customary financial statement procedures by the Company. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See "Forward-Looking Statements" and "Financial Outlook". Forward-Looking Statements This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward looking statements in this news release include statements regarding the Company's expected performance in the third quarter of 2020, including revenue and Adjusted EBITDA. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the Q2 2020 MD&A, as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Financial Outlook This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the three and nine months ended September 30, 2020 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Forward Looking Statements" above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Forward Looking Statements" above, it should not be relied on as necessarily indicative of future results. The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release. ###