SLANG Worldwide Launches O.pen Daily Strains and District Edibles Products in Washington State through Strategic Partnership with Snowcrest
Press Release

SLANG Worldwide Launches O.pen Daily Strains and District Edibles Products in Washington State through Strategic Partnership with Snowcrest

Toronto, Ontario--(Newsfile Corp. - July 14, 2021) - 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 launched two of its best-selling brands, O.pen and District Edibles, in the State of Washington through a strategic partnership with Snowcrest LLC ("Snowcrest"), a cultivator and processor in Vancouver, WA. One of America's best-selling vape brands, O.pen, is now available across dispensaries in Washington. District Edibles is expected to launch in August, further increasing SLANG's product penetration in the Evergreen State. The strategic partnership with Snowcrest, LLC, allows for SLANG brands to be produced in a vertically integrated facility. "Washington is one of the largest cannabis markets in the United States and we are excited to launch our first products for the adult-use market," said Chris Driessen, CEO of SLANG. "This strategic partnership enables us to increase our Gross Merchandise Value metric and expand our retail distribution network through a well-respected, vertically integrated operator with an established track record of success." As part of this previously announced partnership, Snowcrest will manufacture SLANG branded products, and SLANG's sales and marketing teams will work to place these products in dispensaries across the state. The agreement follows a royalty-based payment structure. In addition, Dolce Foglia, LLC, a full-service flavor house catering to the growing food & beverage industries, is also working with Snowcrest to provide premium flavorings in an array of edible products. Ryan Fabian, Owner of Snowcrest, LLC said, "We are thrilled about the strategic alliance with SLANG Worldwide for the Washington State cannabis market. The widely respected brands by SLANG, along with both teams' shared core values and vision of growth are a perfect fit. We proudly manufacture the highest quality flower, vape and edibles for distribution throughout the State of Washington. We look forward to years of successful growth together with the dynamic team and product brands of SLANG Worldwide." To be added to SLANG's email distribution list, please email SLNG@kcsa.com with "SLNG" in the subject. 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 included in this news release include, but are not limited to, statements in respect of the distribution of SLANG branded products in the state of Washington. 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 annual information form dated April 29, 2021 and other disclosure documents available on the Company's profile 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. Media and Investor inquiriesInvestors@SLANGww.comKCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com
SLANG Worldwide Creates Third Core Market With Signing of Definitive Merger Agreement to Acquire High Fidelity, Vermont’s Largest Vertically Integrated Operation

SLANG Worldwide Creates Third Core Market With Signing of Definitive Merger Agreement to Acquire High Fidelity, Vermont’s Largest Vertically Integrated Operation

Toronto, Ontario–(Newsfile Corp. – June 28, 2021) – 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 it has entered into an agreement and plan of merger (the “Merger Agreement”) to acquire High Fidelity, Inc. (“HI-FI”), Vermont’s largest medical cannabis company (the “Merger”). Key Transaction Benefits: Delivers an accretive transaction on prospective Adjusted EBITDA basis Broadens SLANG’s core market footprint to include Vermont, adding to its existing core markets of Colorado and Oregon Adds two of the five medical cannabis licenses in Vermont with four fully operational dispensaries, including in the Burlington area, with ability to add two new retail dispensaries upon receipt of licenses Expands SLANG’s operational footprint with the addition of Vermont’s leading vertically integrated cannabis company, which includes a 28,000-square-foot cultivation, production, lab, and distribution facility, with a planned 50,000-square-foot expansion expected to be completed in 2022 Strengthens SLANG’s experienced leadership further with engaged and aligned local management teams including a proven and profitable operator with an eight-year history Key Vermont Market Benefits: Creates new jobs with competitive wages and benefit packages Brings fresh capital investment into the state, helping to build infrastructure to meet market demand Provides immediate opportunity for Vermont-branded product distribution to a larger US market through SLANG’s established 2200-outlet retail pipeline Adds expertise to support best manufacturing practices, innovation and regulatory compliance Creates strong partnership in supporting the social justice initiatives in Vermont’s cannabis laws HI-FI is one of Vermont’s premier vertically integrated cannabis companies, founded in 2012 in Burlington, the state’s largest urban and cultural center. The Company owns two of the five medical cannabis licenses in Vermont, Champlain Valley Dispensary (“CVD”) and Southern Vermont Wellness (“SVW”), and services approximately 70 percent of registered patients[2]. In June 2021, both CVD and SVW commenced operating under a new brand name, CeresMED. In the upcoming licensing process for adult use, current medical license holders will have early access to the market alongside Vermont’s craft growers, giving them a significant opportunity to build consumer loyalty. In addition to the four dispensaries, HI-FI operates statewide home delivery services and wholesale distribution of its own branded products as well as SLANG branded products. HI-FI has a long-standing mutually beneficial relationship with SLANG as a licensed manufacturer and distributor of leading vape brand, O.pen, in Vermont since 2015. Additionally, the Merger is expected to lead to the introduction of more of SLANG’s award-winning, market-leading brands (District Edibles, Firefly, Bakked and Lunchbox Alchemy) to the Vermont market. Retail sales in Vermont for adult-use cannabis products are expected to begin in the fall of 2022, with sales expected to reach up to US$230 million in 2023. “We recognized the value in High Fidelity as a local success story and pioneer in the Vermont cannabis community, focused on providing access to patients and consumers”, said Chris Driessen, Chief Executive Officer of SLANG. “The High Fidelity team is proud of their accomplishments to date and are committed to the ‘Vermont Way’ of doing things, which means a focus on quality, collaboration and the best consumer and employee experience. We understand these core values and are equally committed to nurturing their value-driven culture. This partnership will not only serve the cannabis community, it will bring quality jobs and revenue to the local and state economy.” Shayne Lynn, President of HI-FI said, “Since our inception, we have led the Vermont cannabis industry with a ‘people first’ philosophy and a focus on expanding patient access and consumer education. With this transaction, we will be able to share experience and resources to help build new regional brands and create a new business model in the industry. As part of SLANG, we can continue to expand our offerings, create more jobs in our communities and remain true to our Vermont heritage, which the SLANG team values tremendously.” In addition to four medical cannabis licenses, HI-FI also owns Ceres Natural Remedies, Vermont’s original CBD store. Since 2016, Ceres has grown to include three retail stores and a portfolio of Ceres branded products with distribution in over 1,200 retail locations, which will expand the SLANG network to over 3,400 total points of retail distribution. In addition to its own branded products, Ceres has a strong track record of scaling up regional and national brands through its sales channels. In 2019, Ceres purchased trētap, a Vermont-based sparkling beverage company and the first of its kind to utilize organic tree water from maple sugarbushes. In 2019, Ceres launched trētap CBD, with four new sparkling beverages infused with CBD. Additionally, HI-FI is awaiting approval of a social equity application for a retail medical cannabis license in New Jersey. This application was submitted in collaboration with partners native to Trenton, N.J. with a mission to support communities disproportionately affected by the War on Drugs. Driessen concluded, “Having already worked with the HI-FI team for a number of years, we are excited to expand our relationship with the team and participate in the Vermont market in a more significant way.” Lynn will join SLANG’s leadership team and is expected to join the Company’s board of directors upon closing of the Merger. Transaction details: At the closing of the Merger, SLANG will pay US$12,000,000 of the Purchase Price by issuing an aggregate of 31,578,947 restricted voting shares in the capital of SLANG (the “SLANG Shares”) (based on an implied price per share of US$0.38), and paying US$3,000,000 in cash. At the 18-month anniversary of the closing of the Merger, SLANG will pay US$250,000 of the Purchase Price by issuing 657,894 SLANG Shares (based on an implied price per share of US$0.38), and paying US$2,000,000 in cash. Pursuant to the Merger Agreement, SLANG may issue additional SLANG Shares upon the achievement of certain performance milestones. Completion of the Merger remains subject to the satisfaction or waiver of all conditions precedent in the Merger Agreement, including the receipt of the approval of the State of Vermont’s Department of Public Safety and any other government authority whose approval is required. Closing of the Merger is expected to occur in Q3 2021. To be added to SLANG’s email distribution list, please email SLNG@kcsa.com to be added to SLANG’s email distribution list, please email SLNG@kcsa.com with “SLNG” in the subject. 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 included in this news release include, but are not limited to, statements in respect of the completion of the Merger on the terms described herein or at all and the manufacture and distribution of new SLANG-branded products in Vermont. 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 annual information form dated April 29, 2021 and other disclosure documents available on the Company’s profile 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. Media and Investor inquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com
SLANG Worldwide Creates Third Core Market With Signing of Definitive Merger Agreement to Acquire High Fidelity, Vermont's Largest Vertically Integrated Operation
Press Release

SLANG Worldwide Creates Third Core Market With Signing of Definitive Merger Agreement to Acquire High Fidelity, Vermont's Largest Vertically Integrated Operation

Toronto, Ontario--(Newsfile Corp. - June 28, 2021) - 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 it has entered into an agreement and plan of merger (the "Merger Agreement") to acquire High Fidelity, Inc. ("HI-FI"), Vermont's largest medical cannabis company (the "Merger"). Key Transaction Benefits: Delivers an accretive transaction on prospective Adjusted EBITDA basis Broadens SLANG's core market footprint to include Vermont, adding to its existing core markets of Colorado and Oregon Adds two of the five medical cannabis licenses in Vermont with four fully operational dispensaries, including in the Burlington area, with ability to add two new retail dispensaries upon receipt of licenses Expands SLANG's operational footprint with the addition of Vermont's leading vertically integrated cannabis company, which includes a 28,000-square-foot cultivation, production, lab, and distribution facility, with a planned 50,000-square-foot expansion expected to be completed in 2022 Strengthens SLANG's experienced leadership further with engaged and aligned local management teams including a proven and profitable operator with an eight-year history Key Vermont Market Benefits: Creates new jobs with competitive wages and benefit packages Brings fresh capital investment into the state, helping to build infrastructure to meet market demand Provides immediate opportunity for Vermont-branded product distribution to a larger US market through SLANG's established 2200-outlet retail pipeline Adds expertise to support best manufacturing practices, innovation and regulatory compliance Creates strong partnership in supporting the social justice initiatives in Vermont's cannabis laws HI-FI is one of Vermont's premier vertically integrated cannabis companies, founded in 2012 in Burlington, the state's largest urban and cultural center. The Company owns two of the five medical cannabis licenses in Vermont, Champlain Valley Dispensary ("CVD") and Southern Vermont Wellness ("SVW"), and services approximately 70 percent of registered patients[2]. In June 2021, both CVD and SVW commenced operating under a new brand name, CeresMED. In the upcoming licensing process for adult use, current medical license holders will have early access to the market alongside Vermont's craft growers, giving them a significant opportunity to build consumer loyalty. In addition to the four dispensaries, HI-FI operates statewide home delivery services and wholesale distribution of its own branded products as well as SLANG branded products. HI-FI has a long-standing mutually beneficial relationship with SLANG as a licensed manufacturer and distributor of leading vape brand, O.pen, in Vermont since 2015. Additionally, the Merger is expected to lead to the introduction of more of SLANG's award-winning, market-leading brands (District Edibles, Firefly, Bakked and Lunchbox Alchemy) to the Vermont market. Retail sales in Vermont for adult-use cannabis products are expected to begin in the fall of 2022, with sales expected to reach up to US$230 million in 2023. "We recognized the value in High Fidelity as a local success story and pioneer in the Vermont cannabis community, focused on providing access to patients and consumers", said Chris Driessen, Chief Executive Officer of SLANG. "The High Fidelity team is proud of their accomplishments to date and are committed to the 'Vermont Way' of doing things, which means a focus on quality, collaboration and the best consumer and employee experience. We understand these core values and are equally committed to nurturing their value-driven culture. This partnership will not only serve the cannabis community, it will bring quality jobs and revenue to the local and state economy." Shayne Lynn, President of HI-FI said, "Since our inception, we have led the Vermont cannabis industry with a 'people first' philosophy and a focus on expanding patient access and consumer education. With this transaction, we will be able to share experience and resources to help build new regional brands and create a new business model in the industry. As part of SLANG, we can continue to expand our offerings, create more jobs in our communities and remain true to our Vermont heritage, which the SLANG team values tremendously." In addition to four medical cannabis licenses, HI-FI also owns Ceres Natural Remedies, Vermont's original CBD store. Since 2016, Ceres has grown to include three retail stores and a portfolio of Ceres branded products with distribution in over 1,200 retail locations, which will expand the SLANG network to over 3,400 total points of retail distribution. In addition to its own branded products, Ceres has a strong track record of scaling up regional and national brands through its sales channels. In 2019, Ceres purchased trētap, a Vermont-based sparkling beverage company and the first of its kind to utilize organic tree water from maple sugarbushes. In 2019, Ceres launched trētap CBD, with four new sparkling beverages infused with CBD. Additionally, HI-FI is awaiting approval of a social equity application for a retail medical cannabis license in New Jersey. This application was submitted in collaboration with partners native to Trenton, N.J. with a mission to support communities disproportionately affected by the War on Drugs. Driessen concluded, "Having already worked with the HI-FI team for a number of years, we are excited to expand our relationship with the team and participate in the Vermont market in a more significant way." Lynn will join SLANG's leadership team and is expected to join the Company's board of directors upon closing of the Merger. Transaction details: At the closing of the Merger, SLANG will pay US$12,000,000 of the Purchase Price by issuing an aggregate of 31,578,947 restricted voting shares in the capital of SLANG (the "SLANG Shares") (based on an implied price per share of US$0.38), and paying US$3,000,000 in cash. At the 18-month anniversary of the closing of the Merger, SLANG will pay US$250,000 of the Purchase Price by issuing 657,894 SLANG Shares (based on an implied price per share of US$0.38), and paying US$2,000,000 in cash. Pursuant to the Merger Agreement, SLANG may issue additional SLANG Shares upon the achievement of certain performance milestones. Completion of the Merger remains subject to the satisfaction or waiver of all conditions precedent in the Merger Agreement, including the receipt of the approval of the State of Vermont's Department of Public Safety and any other government authority whose approval is required. Closing of the Merger is expected to occur in Q3 2021. To be added to SLANG's email distribution list, please email SLNG@kcsa.com to be added to SLANG's email distribution list, please email SLNG@kcsa.com with "SLNG" in the subject. 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 included in this news release include, but are not limited to, statements in respect of the completion of the Merger on the terms described herein or at all and the manufacture and distribution of new SLANG-branded products in Vermont. 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 annual information form dated April 29, 2021 and other disclosure documents available on the Company's profile 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. Media and Investor inquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com
SLANG Worldwide Appoints Hilal Tabsh as Chief Revenue Officer
press release

SLANG Worldwide Appoints Hilal Tabsh as Chief Revenue Officer

Former BellRock Brands executive joins the company to further integrate commerce and business development Toronto, Ontario–(Newsfile Corp. – June 18, 2021) – 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 the appointment of Mr. Hilal Tabsh as the Company’s Chief Revenue Officer (“CRO”), effective immediately. As a 20-year Consumer Packaged Goods (CPG) industry veteran, Mr. Tabsh brings a wealth of experience in leadership, strategy development, and expertise in sales, marketing, and distribution to his new role. Before joining SLANG, Mr. Tabsh worked as a Senior Vice President at BellRock Brands USA, a CPG platform within the global, legal cannabis industry. In this role, he led sales, marketing, and distribution efforts, coupled with the development of the company’s e-commerce strategy, and was able to grow the distribution footprint by 10X during his time in the role. Mr. Tabsh said, “I’m excited to join the SLANG Worldwide family, known for their legacy of high-quality products and innovation. I’m eager to focus on accelerating consumer reach to SLANG’s superior product portfolio through strategic marketing efforts, as well as outlining a clear winning strategy for retail and expanding our footprint through effective distribution with our partners across North America.” Prior to this role, Mr. Tabsh was a Co-Founder and Partner at Limitless, a company based in Chicago. He helped develop Limitless lightly caffeinated sparkling water, which grew rapidly and was eventually acquired by Keurig Dr. Pepper in less than three years for an undisclosed amount. Previously, Mr. Tabsh served eight years as the Head of Sales and Marketing for Red Bull North America, a subsidiary of Red Bull GmbH. In this role, he successfully managed 152 team members under his direct responsibility and over 200 distribution partners that were key to growing the Red Bull footprint across the U.S. He was responsible for partner development, product launches, sales and distribution strategies and goals. Mr. Tabsh also worked for seven years at Red Bull UAE, based in Dubai, United Arab Emirates, serving as Director of Sales and Marketing Strategy. Chris Driessen, CEO of SLANG, said, “I am thrilled to welcome Hilal to the SLANG executive team. His deep experience, and success, in brand building, sales, marketing and growing distribution channels will be invaluable as we grow our business. Now that many of our recent acquisitions are nearing full integration, his skillset will be a tremendous benefit as we now look to rapidly scale distribution into multiple new markets.” To be added to SLANG’s email distribution list, please email SLNG@kcsa.com with “SLNG” in the subject. 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 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 annual information form dated April 29, 2021 and other disclosure documents available on the Company’s profile 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. Media and Investor inquiriesInvestors@SLANGww.comKCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com
SLANG Worldwide Closes Previously Announced Acquisition of Allied Concessions Group, Inc.
press release

SLANG Worldwide Closes Previously Announced Acquisition of Allied Concessions Group, Inc.

Company enters into agreement to acquire NS Holdings Inc. to bolster its Oregon-based manufacturing assets Toronto, Ontario–(Newsfile Corp. – June 9, 2021) – 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, is pleased to announce that it has closed its previously announced acquisition (the “ACG Acquisition“) of Allied Concessions Group, Inc. (“ACG“), a manufacturing and distribution business based in Colorado. The ACG Acquisition is expected to become effective within the next week and upon confirmation by the Colorado Secretary of State of its acceptance of the statement of merger. Additionally, SLANG is pleased to announce that it has entered into a definitive agreement and plan of merger (the “NSH Merger Agreement“) with respect to a proposed acquisition (the “NSH Acquisition“, and together with the ACG Acquisition, the “Acquisitions“) of NS Holdings Inc. (“NSH“). Pursuant to the terms of the NSH Merger Agreement, SLANG will issue to the shareholders of NSH (i) 2,152,002 common shares in the capital of SLANG (the “Common Shares“) and 3,187,503 restricted voting shares in the capital of SLANG (the “Restricted Shares” and together with the Common Shares, the “Shares“) within the next ten days as a deposit, and (ii) 2,125,002 Common Shares and 2,629,690 Restricted Shares upon closing of the NSH Acquisition. Pursuant to the terms of the NSH Merger Agreement, SLANG may issue additional Shares to the NSH vendors upon the achievement of certain performance milestones. Completion of the NSH Acquisition and the issuance of any Shares in connection therewith remain subject to the satisfaction or waiver of all conditions set forth in the NSH Merger Agreement, including the approval of the Canadian Securities Exchange (the “Exchange“) and the Oregon Liquor Control Commission. Closing of the NSH Acquisition is expected to occur in Q3 2020. The Acquisitions are the latest development in the Company’s strategy to consolidate its supply chain in both of its core markets Colorado and Oregon. Colorado’s and Oregon’s estimated combined cannabis market size is over US$3.3B1. Upon consolidation of these manufacturing assets, the Company will be able to streamline its operations, creating efficiencies and controlling its supply chain in Oregon and Colorado. This is expected to result in an improved ability to scale production volumes in response to changes in demand, ensuring a more nimble operation that can rapidly adapt to changing market dynamics. Chris Driessen, CEO of SLANG, said, “We are thrilled to complete our acquisition of Allied Concessions Group. The integration of ACG into our platform will allow us to control our own destiny from seed to wholesale of the entire portfolio of SLANG brands in our largest market by consolidating and streamlining our operations in Colorado. While we have been consolidating the economics of ACG since December 31st, we now fully own the asset, securing an integral part of our operations. NSH represents a further opportunity to consolidate our supply chain throughout our core market of Oregon. By having complete control over our production in these core markets we can more effectively address fluctuations in demand while efficiently managing costs.” ACG is an Infused Product Manufacturer (MIP) that produces O.pen, Bakked, Firefly and Pressies branded cannabis products in Colorado. ACG is comprised of two different manufacturing and distribution facilities that extract both hydrocarbon and CO2 oil for SLANG branded products in Colorado. This expansion follows SLANG’s recent acquisitions of licensed cannabis cultivator Slang Colorado Cultivation, Inc. and licensed manufacturer and distributor, Slang Colorado Distribution, LLC. in Colorado. NSH is the parent company of GNT Oregon, LLC (“GNT“), the operating asset in Oregon that produces O.pen, Bakked and District Edibles branded cannabis products in Oregon. GNT operates a licensed CO2 extraction and manufacturing facility in Portland, Oregon. The NSH Acquisition follows SLANG’s recent acquisition of licensed manufacturer and distributor, Lunchbox Alchemy in Oregon. Share Issuances SLANG also announces that it will issue an aggregate of 315,249 Common Shares, at a deemed price of C$0.295 per Common Share, to 26 employees, including 3 executive officers, who elected to receive shares in lieu of cash as part of their compensation. The Company further announces that it will issue an aggregate of 112,035 Common Shares at a deemed price of C$0.56 per Common Share in consideration of the provision of past services to the Company by a current director. The issuance of the Common Shares is subject to Exchange approval and such Common Shares shall be subject to a hold period expiring 4 months and 1 day from the date of issuance, unless waived by the Exchange. 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. To be added to SLANG’s email distribution list, please email SLNG@kcsa.com with “SLNG” in the subject. 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 ACG Acquisition becoming effective and the timing thereof, the terms and completion of the NSH Acquisition and SLANG’s prospects and the manufacture and distribution of SLANG branded products in Colorado and Oregon. 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 annual information form dated April 29, 2021 and other disclosure document available on the Company’s profile 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. NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Media and Investor InquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com 1 Source: BDSA
SLANG Worldwide Closes Previously Announced Acquisition of Allied Concessions Group, Inc.
Press Release

SLANG Worldwide Closes Previously Announced Acquisition of Allied Concessions Group, Inc.

Company enters into agreement to acquire NS Holdings Inc. to bolster its Oregon-based manufacturing assets Toronto, Ontario--(Newsfile Corp. - June 9, 2021) - 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, is pleased to announce that it has closed its previously announced acquisition (the "ACG Acquisition") of Allied Concessions Group, Inc. ("ACG"), a manufacturing and distribution business based in Colorado. The ACG Acquisition is expected to become effective within the next week and upon confirmation by the Colorado Secretary of State of its acceptance of the statement of merger. Additionally, SLANG is pleased to announce that it has entered into a definitive agreement and plan of merger (the "NSH Merger Agreement") with respect to a proposed acquisition (the "NSH Acquisition", and together with the ACG Acquisition, the "Acquisitions") of NS Holdings Inc. ("NSH"). Pursuant to the terms of the NSH Merger Agreement, SLANG will issue to the shareholders of NSH (i) 2,152,002 common shares in the capital of SLANG (the "Common Shares") and 3,187,503 restricted voting shares in the capital of SLANG (the "Restricted Shares" and together with the Common Shares, the "Shares") within the next ten days as a deposit, and (ii) 2,125,002 Common Shares and 2,629,690 Restricted Shares upon closing of the NSH Acquisition. Pursuant to the terms of the NSH Merger Agreement, SLANG may issue additional Shares to the NSH vendors upon the achievement of certain performance milestones. Completion of the NSH Acquisition and the issuance of any Shares in connection therewith remain subject to the satisfaction or waiver of all conditions set forth in the NSH Merger Agreement, including the approval of the Canadian Securities Exchange (the "Exchange") and the Oregon Liquor Control Commission. Closing of the NSH Acquisition is expected to occur in Q3 2020. The Acquisitions are the latest development in the Company's strategy to consolidate its supply chain in both of its core markets Colorado and Oregon. Colorado's and Oregon's estimated combined cannabis market size is over US$3.3B1. Upon consolidation of these manufacturing assets, the Company will be able to streamline its operations, creating efficiencies and controlling its supply chain in Oregon and Colorado. This is expected to result in an improved ability to scale production volumes in response to changes in demand, ensuring a more nimble operation that can rapidly adapt to changing market dynamics. Chris Driessen, CEO of SLANG, said, "We are thrilled to complete our acquisition of Allied Concessions Group. The integration of ACG into our platform will allow us to control our own destiny from seed to wholesale of the entire portfolio of SLANG brands in our largest market by consolidating and streamlining our operations in Colorado. While we have been consolidating the economics of ACG since December 31st, we now fully own the asset, securing an integral part of our operations. NSH represents a further opportunity to consolidate our supply chain throughout our core market of Oregon. By having complete control over our production in these core markets we can more effectively address fluctuations in demand while efficiently managing costs." ACG is an Infused Product Manufacturer (MIP) that produces O.pen, Bakked, Firefly and Pressies branded cannabis products in Colorado. ACG is comprised of two different manufacturing and distribution facilities that extract both hydrocarbon and CO2 oil for SLANG branded products in Colorado. This expansion follows SLANG's recent acquisitions of licensed cannabis cultivator Slang Colorado Cultivation, Inc. and licensed manufacturer and distributor, Slang Colorado Distribution, LLC. in Colorado. NSH is the parent company of GNT Oregon, LLC ("GNT"), the operating asset in Oregon that produces O.pen, Bakked and District Edibles branded cannabis products in Oregon. GNT operates a licensed CO2 extraction and manufacturing facility in Portland, Oregon. The NSH Acquisition follows SLANG's recent acquisition of licensed manufacturer and distributor, Lunchbox Alchemy in Oregon. Share Issuances SLANG also announces that it will issue an aggregate of 315,249 Common Shares, at a deemed price of C$0.295 per Common Share, to 26 employees, including 3 executive officers, who elected to receive shares in lieu of cash as part of their compensation. The Company further announces that it will issue an aggregate of 112,035 Common Shares at a deemed price of C$0.56 per Common Share in consideration of the provision of past services to the Company by a current director. The issuance of the Common Shares is subject to Exchange approval and such Common Shares shall be subject to a hold period expiring 4 months and 1 day from the date of issuance, unless waived by the Exchange. 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. To be added to SLANG's email distribution list, please email SLNG@kcsa.com with "SLNG" in the subject. 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 ACG Acquisition becoming effective and the timing thereof, the terms and completion of the NSH Acquisition and SLANG's prospects and the manufacture and distribution of SLANG branded products in Colorado and Oregon. 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 annual information form dated April 29, 2021 and other disclosure document available on the Company's profile 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. NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Media and Investor Inquiries Investors@SLANGww.com KCSA Strategic Communications Phil Carlson / Elizabeth BarkerSLANG@kcsa.com 1 Source: BDSA
SLANG Worldwide Announces First Quarter 2021 Financial Results
press release

SLANG Worldwide Announces First Quarter 2021 Financial Results

Revenue of $9.9 million in Q1 2021, a 112% increase over Q1 2020 Gross margin of 37% in Q1 2021, compared with 33% in Q4 2020 Cash and cash equivalents of $12.4 million as of March 31, 2021 Strong brand performance, with approximately 747,927 Branded Units sold in Q1 2021 (a 44% increase over Q1 2020)1 Toronto, Ontario–(Newsfile Corp. – May 27, 2021) – 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 months ended March 31, 2021. All figures in this press release are stated in Canadian dollars unless otherwise noted. Key Financial and Operational Highlights Financial Highlights: Revenue for Q1 2021 was $9.9 million, compared with $4.7 million in Q1 2020 and $9.7 million in Q4 2020. The primary driver of growth was strong demand in the Company’s core markets of Colorado and Oregon as well as the consolidation of wholesale revenue. Similar strength in the Company’s emerging markets also contributed to growth, as did the successful launch of new products including Lunchbox Alchemy CBD. Gross profit of $3.71 million (37% gross margin) in Q1 2021, compared with $2.85 million (61% gross margin) in Q1 2020 and $3.16 million (33% gross margin) in Q4 2020. In 2020 sales were primarily comprised of licensing and packaging revenue. This represented lower topline revenue but higher gross margin percentages, with lower gross profit dollars. With the consolidation of our operations in our core markets2 we are now generating higher topline revenue with lower gross margin percentages and higher gross profit dollars. The increase in margin from Q4 2020 is a result of fully consolidating the economics of our Colorado manufacturing partner from December 31, 2020. Adjusted EBITDA (LBITDA) of ($0.96 million) in Q1 2021, compared with ($2.7 million) in Q1 2020. The reduction of the Adjusted EBITDA loss is primarily attributable to an increase in revenue and a reduction in operating expenses. The increase in revenue in Q1 2021 of $5.23M which represents a 112% increase can be attributed to the Company’s consolidation of its core market operations as described above. $12.4 million of cash and cash equivalents at March 31, 2021, compared to $6.5 million at December 31, 2020. This includes proceeds from an oversubscribed private placement (the “Financing”) for aggregate gross proceeds of $11.9 million, led by cannabis-focused private equity firm Merida Capital Holdings. Chris Driessen, CEO of SLANG, said, “We reported improved topline results, both year over year and sequentially, primarily driven by strength in both our core markets of Colorado and Oregon which benefited from the consolidated economics from our recent acquisitions. Gross profit also improved, as expected, as we fully consolidated the economics of ACG, following the execution of a merger agreement to purchase 100% of the equity interest, which is expected to close in the coming weeks. We continued to integrate and invest in the assets that we acquired in 2020 in our core markets, including launching a new e-commerce store through which we are selling our CBD products, in order to maximize the growth opportunity. “Looking ahead, we are well-positioned to continue our growth strategy of increasing market share in our core markets and expanding in emerging markets. SLANG will continue to benefit from its leaner, more efficient business model which is allowing us effectively manage costs. Excluding expenses associated with the companies acquired in 2020 which were LBA Global, Peoria Partners, Pleasant Valley Ranch and ACG, operating expenses declined by 20% to $8.66M (or 87% of revenue) compared with Q1 2021 operating expenses of $10.78M (or 230% of revenue). All-in, operating expenses still declined in Q1 2021 compared with Q1 2020. This improved operational efficiency, together with our brand leadership and expanding product portfolio, provides us with a strong platform to support the rapid scaling of our business throughout the remainder of the year. We expect to see stronger emerging market sales in 2021 as we drive brand value creation and expand our presence in these markets. Our partnerships with Trulieve, Natura Life + Science and Gage Cannabis will further contribute to our expanded product distribution and improve our brand performance. With a strong cash balance to fuel our expansion into new states and growth in core markets, we are poised for meaningful growth in the remainder of the year.” Operational Highlights and Growth Drivers: Capital efficiency: As of December 31, 2020 the Company consolidated the economics of Allied Concessions Group, Inc. (“ACG”), which led to improved gross margin. 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’s Strategic Partnership with Natura Life + Science (“Natura”) will allow the Company to re-enter the California market in a profitable way. Products, beginning with District Edibles (the previous best-selling gummy in CA), are expected to be available in Q2 2021. Massachusetts: The Company has a Strategic Partnership with Trulieve Cannabis Corp. (“Trulieve”) to supply branded products to the 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 81 Trulieve locations in Florida. The Company added O.pen Cured Resin to its Florida portfolio. The Company expects District Edibles gummies in sweet and sour formulations to launch in Q2 2021. Michigan: SLANG’s Strategic Partnership with Gage Cannabis, signed in Q2 2020, is expected to bring branded products to the Michigan market in Q3 2021. Oklahoma: SLANG products are now available in over 90 stores in the Oklahoma market. Sales in Oklahoma were in part driven by District Edibles gummies in both sweet and sour formulations. O.Pen Cured Resin is also set to launch in Oklahoma in Q2 2021. Washington: The Company has a Strategic Partnership with Snowcrest, LLC to supply branded products to the market. The Company is expected to bring branded products to market in Q3 2021. Canada: In Q1 2021, the Company’s O.pen and Firefly Mini line of products became available in Ontario. The FireflyMini has been ranked as the #1 selling disposable vape for several weeks in Q1 2021. Key Performance Indicators: Excluding California, the Company showed considerable growth. 747,927 Branded Units were sold in Q1 2021, an increase of 44% compared with 520,239 Branded Units sold in Q1 2020; and 56.5 million Branded Servings were sold in Q1 2021, an increase of 23% compared with 46 million Branded Servings sold in Q1 2020. Including California, 748,079 Branded Units were sold in Q1 2021, an increase of 18% compared with 634,751 Branded Units sold in Q1 2020; and 56.5 million Branded Servings were sold in Q1 2021, an increase of 5% compared with 53.8 million Branded Servings sold in Q1 2020. The Company saw a 169% increase in branded unit volume in Oregon and expects California sales to pick up in Q2 2021 with its strategic partnership with Natura. In markets where units are down but servings are up, this generally is a result of consumer preference shifting from .5g carts to 1g carts, which contain a higher number of servings. Product Diversification: The Company is bringing new product SKUs to market through the launch of additional brands in new product verticals and the expansion of existing product lines. During the first quarter, the Company entered into a strategic partnership to manufacture and distribute cannabis products for Flower by Edie Parker. The SLANG-manufactured products launched in Colorado in early 2021, with the potential to expand into additional markets over time. Brand Leadership: SLANG’s brands continued to earn market-leading positions in its core markets in the first quarter of 2021. Highlights include: O.pen ranked as the #1 vape cartridge in Colorado and #12 in Oregon; Firefly Mini was the #5 and O.pen was the #4 disposable vaporizer in Colorado; Bakked was the #5 dabbable distillate in Oregon and #5 in Colorado; District Edibles was the #12 gummy in Colorado and Lunchbox Alchemy was the #8 gummy in Oregon; Pressies was the #4 pill in Colorado. (Source: BDSA.) First Quarter 2021 Corporate Development Update SLANG continued to grow in its core markets of Colorado and Oregon. Nationwide, Slang launched a new e-commerce platform, through which its best-selling CBD gummies, Lunchbox Alchemy CBD, are now available for purchase online. Production and fulfilment of all e-commerce orders will be handled in-house through SLANG’s Oregon and Colorado infrastructure that was acquired in 2020. In Colorado, Slang signed a strategic partnership agreement with Avér Skin to manufacture, co-package and distribute cannabis-based skincare products, with the potential to expand into additional markets over time. First Quarter 2021 Financial Review The consolidated financial statements were prepared in accordance with IFRS. The following is selected presentation of the Income Statement for the quarter end March 31, 2021: 3 monthsended31-Mar-21 3 monthsended31-Mar-20 (In thousands except per share data and percentages) CDN$ CDN$ Net Operating Revenue $9,923 $4,690 Cost of goods sold* 6,224 1,836 Gross profit before gain on fair value of biological assets 3,699 2,854 Realized fair value amounts included in inventory sold 26 – Unrealized gain on changes in fair value of biological assets (11) – Gross Profit 3,714 2,854 Gross Profit Margin 37% 61% Operating expenses 10,322 10,782 Operating Loss (6,608) (7,928) Other items (Impairment, FV adjustment, FX, gains/losses, taxes, etc.) 2,468 ($31,069) Total Comprehensive Income / (Loss) ($9,076) $23,141 Earnings Per Share Basic ($0.02) $0.08 Diluted ($0.02) $0.07   Non-IFRS Measures EBITDA, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, 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. Management defines Adjusted Gross Profit and Adjusted Gross Margin as gross profit and gross margin adjusted for inventory fair value adjustments and fair value changes of biological assets. See the heading “Key Performance Indicators” in the Company’s management’s discussion and analysis for the three months ended March 31, 2021 (the “Q1 2021 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. 3 monthsended31-Mar-21 3 monthsended31-Mar-20 (In thousands except per share data and percentages) CDN CDN Total Comprehensive Income (Loss) ($9,076) $23,141 EBITDA (4,609) (6,347) Adjusted EBITDA (959) (2,704)   See the Q1 2021 MD&A for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG’s financial statements and the Q1 2021 MD&A are available on SEDAR at www.sedar.com, and on the Company’s Investor Relations website at www.slangww.com. Conference Call Details Management plans to host an investor conference call today, May 27, 2021, at 10:00 am EDT to discuss the results. Timing: Thursday, May 27, 2021 at 10:00 am EDT Dial-in: +1.833-529-0214 (U.S. toll free) or +1.236-389-2114 (international) or+1.647-689-6824 (international) ConferenceID: 9672407 Webcast: A live webcast can be accessed from the Investors section of Company’s website at www.slangww.comor at this link.   A replay of the webcast will be archived on the Company’s website for one year.   Media and Investor InquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.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. For more information, please visit www.slangww.com. To be added to SLANG’s email distribution list, please email SLNG@kcsa.com with “SLNG” in the subject. 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 included in this news release include, but are not limited to, statements in respect of the Company’s prospects and the distribution of the Company’s branded products in its core and emerging markets, the proposed acquisition of ACG and ongoing consolidation of its supply chain in core markets and the impact thereof. 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 annual information form dated April 13, 2021and “Risks and Uncertainties” in the Q1 2021 MD&A and other disclosure document available on the Company’s profile 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 news 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. 1 Branded Units Sold and Branded Servings exclude sales in the California market, which the Company exited in 2020.2 This includes acquisition or consolidation of LBA Global Corporation (now renamed Slang Oregon, Inc.), Peoria Partners, LLC (now renamed Slang Colorado Distribution, LLC), Pleasant Valley Ranch LLC (now renamed Slang Colorado Cultivation, Inc.) and Allied Concessions Group, Inc.
SLANG Worldwide Announces First Quarter 2021 Financial Results
Press Release

SLANG Worldwide Announces First Quarter 2021 Financial Results

Revenue of $9.9 million in Q1 2021, a 112% increase over Q1 2020 Gross margin of 37% in Q1 2021, compared with 33% in Q4 2020 Cash and cash equivalents of $12.4 million as of March 31, 2021 Strong brand performance, with approximately 747,927 Branded Units sold in Q1 2021 (a 44% increase over Q1 2020)1 Toronto, Ontario--(Newsfile Corp. - May 27, 2021) - 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 months ended March 31, 2021. All figures in this press release are stated in Canadian dollars unless otherwise noted. Key Financial and Operational Highlights Financial Highlights: Revenue for Q1 2021 was $9.9 million, compared with $4.7 million in Q1 2020 and $9.7 million in Q4 2020. The primary driver of growth was strong demand in the Company's core markets of Colorado and Oregon as well as the consolidation of wholesale revenue. Similar strength in the Company's emerging markets also contributed to growth, as did the successful launch of new products including Lunchbox Alchemy CBD. Gross profit of $3.71 million (37% gross margin) in Q1 2021, compared with $2.85 million (61% gross margin) in Q1 2020 and $3.16 million (33% gross margin) in Q4 2020. In 2020 sales were primarily comprised of licensing and packaging revenue. This represented lower topline revenue but higher gross margin percentages, with lower gross profit dollars. With the consolidation of our operations in our core markets2 we are now generating higher topline revenue with lower gross margin percentages and higher gross profit dollars. The increase in margin from Q4 2020 is a result of fully consolidating the economics of our Colorado manufacturing partner from December 31, 2020. Adjusted EBITDA (LBITDA) of ($0.96 million) in Q1 2021, compared with ($2.7 million) in Q1 2020. The reduction of the Adjusted EBITDA loss is primarily attributable to an increase in revenue and a reduction in operating expenses. The increase in revenue in Q1 2021 of $5.23M which represents a 112% increase can be attributed to the Company's consolidation of its core market operations as described above. $12.4 million of cash and cash equivalents at March 31, 2021, compared to $6.5 million at December 31, 2020. This includes proceeds from an oversubscribed private placement (the "Financing") for aggregate gross proceeds of $11.9 million, led by cannabis-focused private equity firm Merida Capital Holdings. Chris Driessen, CEO of SLANG, said, "We reported improved topline results, both year over year and sequentially, primarily driven by strength in both our core markets of Colorado and Oregon which benefited from the consolidated economics from our recent acquisitions. Gross profit also improved, as expected, as we fully consolidated the economics of ACG, following the execution of a merger agreement to purchase 100% of the equity interest, which is expected to close in the coming weeks. We continued to integrate and invest in the assets that we acquired in 2020 in our core markets, including launching a new e-commerce store through which we are selling our CBD products, in order to maximize the growth opportunity. "Looking ahead, we are well-positioned to continue our growth strategy of increasing market share in our core markets and expanding in emerging markets. SLANG will continue to benefit from its leaner, more efficient business model which is allowing us effectively manage costs. Excluding expenses associated with the companies acquired in 2020 which were LBA Global, Peoria Partners, Pleasant Valley Ranch and ACG, operating expenses declined by 20% to $8.66M (or 87% of revenue) compared with Q1 2021 operating expenses of $10.78M (or 230% of revenue). All-in, operating expenses still declined in Q1 2021 compared with Q1 2020. This improved operational efficiency, together with our brand leadership and expanding product portfolio, provides us with a strong platform to support the rapid scaling of our business throughout the remainder of the year. We expect to see stronger emerging market sales in 2021 as we drive brand value creation and expand our presence in these markets. Our partnerships with Trulieve, Natura Life + Science and Gage Cannabis will further contribute to our expanded product distribution and improve our brand performance. With a strong cash balance to fuel our expansion into new states and growth in core markets, we are poised for meaningful growth in the remainder of the year." Operational Highlights and Growth Drivers: Capital efficiency: As of December 31, 2020 the Company consolidated the economics of Allied Concessions Group, Inc. ("ACG"), which led to improved gross margin. 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's Strategic Partnership with Natura Life + Science ("Natura") will allow the Company to re-enter the California market in a profitable way. Products, beginning with District Edibles (the previous best-selling gummy in CA), are expected to be available in Q2 2021. Massachusetts: The Company has a Strategic Partnership with Trulieve Cannabis Corp. ("Trulieve") to supply branded products to the 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 81 Trulieve locations in Florida. The Company added O.pen Cured Resin to its Florida portfolio. The Company expects District Edibles gummies in sweet and sour formulations to launch in Q2 2021. Michigan: SLANG's Strategic Partnership with Gage Cannabis, signed in Q2 2020, is expected to bring branded products to the Michigan market in Q3 2021. Oklahoma: SLANG products are now available in over 90 stores in the Oklahoma market. Sales in Oklahoma were in part driven by District Edibles gummies in both sweet and sour formulations. O.Pen Cured Resin is also set to launch in Oklahoma in Q2 2021. Washington: The Company has a Strategic Partnership with Snowcrest, LLC to supply branded products to the market. The Company is expected to bring branded products to market in Q3 2021. Canada: In Q1 2021, the Company's O.pen and Firefly Mini line of products became available in Ontario. The FireflyMini has been ranked as the #1 selling disposable vape for several weeks in Q1 2021. Key Performance Indicators: Excluding California, the Company showed considerable growth. 747,927 Branded Units were sold in Q1 2021, an increase of 44% compared with 520,239 Branded Units sold in Q1 2020; and 56.5 million Branded Servings were sold in Q1 2021, an increase of 23% compared with 46 million Branded Servings sold in Q1 2020. Including California, 748,079 Branded Units were sold in Q1 2021, an increase of 18% compared with 634,751 Branded Units sold in Q1 2020; and 56.5 million Branded Servings were sold in Q1 2021, an increase of 5% compared with 53.8 million Branded Servings sold in Q1 2020. The Company saw a 169% increase in branded unit volume in Oregon and expects California sales to pick up in Q2 2021 with its strategic partnership with Natura. In markets where units are down but servings are up, this generally is a result of consumer preference shifting from .5g carts to 1g carts, which contain a higher number of servings. Product Diversification: The Company is bringing new product SKUs to market through the launch of additional brands in new product verticals and the expansion of existing product lines. During the first quarter, the Company entered into a strategic partnership to manufacture and distribute cannabis products for Flower by Edie Parker. The SLANG-manufactured products launched in Colorado in early 2021, with the potential to expand into additional markets over time. Brand Leadership: SLANG's brands continued to earn market-leading positions in its core markets in the first quarter of 2021. Highlights include: O.pen ranked as the #1 vape cartridge in Colorado and #12 in Oregon; Firefly Mini was the #5 and O.pen was the #4 disposable vaporizer in Colorado; Bakked was the #5 dabbable distillate in Oregon and #5 in Colorado; District Edibles was the #12 gummy in Colorado and Lunchbox Alchemy was the #8 gummy in Oregon; Pressies was the #4 pill in Colorado. (Source: BDSA.) First Quarter 2021 Corporate Development Update SLANG continued to grow in its core markets of Colorado and Oregon. Nationwide, Slang launched a new e-commerce platform, through which its best-selling CBD gummies, Lunchbox Alchemy CBD, are now available for purchase online. Production and fulfilment of all e-commerce orders will be handled in-house through SLANG's Oregon and Colorado infrastructure that was acquired in 2020. In Colorado, Slang signed a strategic partnership agreement with Avér Skin to manufacture, co-package and distribute cannabis-based skincare products, with the potential to expand into additional markets over time. First Quarter 2021 Financial Review The consolidated financial statements were prepared in accordance with IFRS. The following is selected presentation of the Income Statement for the quarter end March 31, 2021:   3 monthsended31-Mar-21 3 monthsended31-Mar-20 (In thousands except per share data and percentages) CDN$ CDN$ Net Operating Revenue $9,923 $4,690 Cost of goods sold* 6,224 1,836 Gross profit before gain on fair value of biological assets 3,699 2,854 Realized fair value amounts included in inventory sold 26 - Unrealized gain on changes in fair value of biological assets (11) - Gross Profit 3,714 2,854 Gross Profit Margin 37% 61% Operating expenses 10,322 10,782 Operating Loss (6,608) (7,928) Other items (Impairment, FV adjustment, FX, gains/losses, taxes, etc.) 2,468 ($31,069) Total Comprehensive Income / (Loss) ($9,076) $23,141 Earnings Per Share     Basic ($0.02) $0.08 Diluted ($0.02) $0.07   Non-IFRS Measures EBITDA, Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, 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. Management defines Adjusted Gross Profit and Adjusted Gross Margin as gross profit and gross margin adjusted for inventory fair value adjustments and fair value changes of biological assets. See the heading "Key Performance Indicators" in the Company's management's discussion and analysis for the three months ended March 31, 2021 (the "Q1 2021 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.   3 monthsended31-Mar-21 3 monthsended31-Mar-20 (In thousands except per share data and percentages) CDN CDN Total Comprehensive Income (Loss) ($9,076) $23,141 EBITDA (4,609) (6,347) Adjusted EBITDA (959) (2,704)   See the Q1 2021 MD&A for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG's financial statements and the Q1 2021 MD&A are available on SEDAR at www.sedar.com, and on the Company's Investor Relations website at www.slangww.com. Conference Call Details Management plans to host an investor conference call today, May 27, 2021, at 10:00 am EDT to discuss the results. Timing: Thursday, May 27, 2021 at 10:00 am EDT Dial-in: +1.833-529-0214 (U.S. toll free) or +1.236-389-2114 (international) or+1.647-689-6824 (international) ConferenceID: 9672407 Webcast: A live webcast can be accessed from the Investors section of Company's website at www.slangww.comor at this link. A replay of the webcast will be archived on the Company's website for one year.   Media and Investor Inquiries Investors@SLANGww.com KCSA Strategic Communications Phil Carlson / Elizabeth BarkerSLANG@kcsa.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. For more information, please visit www.slangww.com. To be added to SLANG's email distribution list, please email SLNG@kcsa.com with "SLNG" in the subject. 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 included in this news release include, but are not limited to, statements in respect of the Company's prospects and the distribution of the Company's branded products in its core and emerging markets, the proposed acquisition of ACG and ongoing consolidation of its supply chain in core markets and the impact thereof. 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 annual information form dated April 13, 2021and "Risks and Uncertainties" in the Q1 2021 MD&A and other disclosure document available on the Company's profile 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 news 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. 1 Branded Units Sold and Branded Servings exclude sales in the California market, which the Company exited in 2020.2 This includes acquisition or consolidation of LBA Global Corporation (now renamed Slang Oregon, Inc.), Peoria Partners, LLC (now renamed Slang Colorado Distribution, LLC), Pleasant Valley Ranch LLC (now renamed Slang Colorado Cultivation, Inc.) and Allied Concessions Group, Inc.
SLANG Worldwide Adds Two New Independent Directors

SLANG Worldwide Adds Two New Independent Directors

Toronto, Ontario–(Newsfile Corp. – May 17, 2021) – 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, is pleased to announce the appointment of Mr. Sam Brill and Ms. Felicia Snyder as independent directors on its Board of Directors. SLANG’s Board of Directors is now comprised of nine directors, six of whom are independent. Mr. Chris Driessen, President and CEO of SLANG, stated, “Felicia and Sam are both seasoned professionals with significant knowledge and experience in the cannabis industry. As we enter the next chapter of our growth, we made the strategic decision to expand our Board and bring on two executives who have led several companies through tremendous growth. They will help us build value for our shareholders and provide ongoing counsel and guidance in achieving our short and long-term objectives.” Mr. Brill has served as the President and Chief Investment Officer of Seventh Avenue Investments (“SAI”) since August 2017, focused on direct investing in debt and equity securities of a wide range of both growth-oriented and distressed private companies. SAI is the private equity arm of a single-family office in New York City with a multibillion-dollar asset portfolio. In addition to building SAI’s diversified portfolio in traditional sectors, Mr. Brill expanded the investments of the family office into the cannabis sector with a total cannabis portfolio that now exceeds $160 million. In a number of these investments, he played a critical role in helping management with strategic decisions, corporate reorganization, and financial planning. Before joining SAI, Mr. Brill was the Chief Investment Officer and Portfolio Manager of Weismann Capital, a single-family office in Stamford, CT, responsible for all long and short investments in public equities and credit. Previously, he also served as the Chief Operating Officer and Director of Amedia Networks (formerly TTR Technologies), a publicly traded technology company. He started his finance career at JDS Capital Management, a highly successful technology focused hedge fund. Mr. Brill noted, “As a long-term shareholder of SLANG, I am excited about the additional impact I can make as a director on the company’s growth and direction. SLANG has compelling prospects and I look forward to bringing my experience and track record in the capital markets, cannabis industry, and corporate strategy to the SLANG Board of Directors.” Ms. Snyder was a Founding Executive at Tokyo Smoke, one of Canada’s most recognized cannabis brands and a leading Canadian cannabis retailer, where she led the company through its merger with Doja Cannabis and its eventual sale to Canopy Growth. Post-acquisition, she was Vice President at Canopy Growth, managing Canopy’s portfolio of premium cannabis brands. Prior to Tokyo Smoke, she worked for several years in South Korea with Samsung Electronics in its Global Strategy Group and Smart TV Services Group where she led a variety of projects related to business strategy, acquisitions, investments, and developing new partnerships, products and services. She was also a Senior Market Manager at Google and a Management Consultant at Oliver Wyman, a global consulting firm. She holds an MBA from The Wharton School at the University of Pennsylvania and earned her Bachelor of Commerce at McGill University (graduating with Great Distinction). Ms. Snyder commented, “As the cannabis market matures from supply-driven, to brand driven, I believe SLANG is well positioned and on the precipice of significant growth. I am excited to combine SLANG’s diverse brand portfolio, multi-state supply chain and dynamic business model with my experience scaling brands and driving growth at start-ups, Fortune 500 and large multinational corporations.” 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. To be added to SLANG’s email distribution list, please email SLNG@kcsa.com with “SLNG” in the subject. 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 annual information form dated April 29, 2021 and other disclosure documents available on the Company’s profile 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. Media and Investor InquiriesInvestors@SLANGww.com KCSA Strategic CommunicationsPhil Carlson / Elizabeth BarkerSLANG@kcsa.com