Citizen Stash Reports Financial Results for The Third Quarter of Fiscal 2021

VANCOUVER, BC / ACCESSWIRE / October 29, 2021 / Citizen Stash Cannabis Corp. (Formally Experion Holdings Ltd.) (the “Company” or “Citizen Stash”) (TSXV:CSC)(OTCQB:EXPFF)(FRANKFURT:MB31) Canada’s solution to craft cannabis and premium products is pleased to report its third quarter financial results for the period ended August 31, 2021.

Key Financial and Corporate Highlights:

In the third quarter ending August 31, 2021, Citizen Stash continued to execute on its corporate strategy and advance its ‘aggregation and distribution’ model driving business growth as illustrated by the following milestones and initiatives:

  • Gross revenue increased 59% in Q3 2021 to $3.4 million compared to $2.1 million in Q3 2020.
  • Year-to-date sales for the first nine months of 2021 represent a more than 131% increase over the first nine months of the previous year.
  • New listings of 3.5-gram flower jars for Alberta and British Columbia with newly launched strains “Jungle Breath” and “Cookie Puss”.
  • The Company processed and sold 398,702 grams of premium dried flower through retail distribution in Q3 2021 compared to 240,017 in Q3 2020, a 66% increase.
  • Citizen Stash’s average price per gram realized of $7.98 in Q3 2021 continues to be strong and reflect premium pricing in the Canadian market.
  • Citizen Stash partnered with Burb, a cannabis retailer, to license their trademark, and distributed over 15,000 units of 3.5-gram “BC Zaza” flower jars of Burb branded products through the Ontario Cannabis Store, and was the fastest selling premium flower over $40 in Ontario for August.
  • The Ontario Cannabis Store has recently approved a new flower strain that will be distributed in 3.5-gram jars called “Rockstar”, under the Burb brand via this Burb/Citizen Stash partnership.
  • Citizen Stash has been accepted with Cannabis New Brunswick and in Nova Scotia (“NSLC”) opening the Maritime provinces beginning in Q4 2021.
  • To ensure better alignment of the consumer brand Citizen Stash and the corporate brand identity, the Company changed its name from Experion Holdings Ltd. to Citizen Stash Cannabis Corp.
  • Well positioned balance sheet with a total of $12.3 million in assets and a net working capital balance (current assets less current liabilities) of $4.8 million.
  • Signed an arrangement agreement with The Valens Company Inc. (“Valens”) pursuant to which Valens will acquire all of the issued and outstanding shares of Citizen Stash. Citizen Stash securityholders will vote on the transaction at a special securityholders meeting on November 1, 2021.

“Our year-to-date sales for the first nine months of 2021 represent a more than 131% increase over the first nine months of the previous year. This accomplishment further validates the production and distribution model we have established over the year and coupled with the retail success of our Citizen Stash premium brand, positions the Company for continued expansion. Notwithstanding the increased demand for Citizen Stash products, the continuing effects of the COVID-19 pandemic did hamper some growth opportunities in the quarter with many provincial exchanges mandating inventory caps, smaller orders, price reductions, and receiving delays. However, with our new pack size, innovative strain launch and new pricing model launched during the quarter, we remain convinced that the investments we’ve made in building one of the top premium brands in the country positions us for strong growth going forward,” commented Mr. Jarrett Malnarich, CEO of Citizen Stash.

“Despite ongoing challenges across the industry our unique ‘aggregation and distribution’ model gives us a distinct advantage as we can quickly ramp our production to meet demand as it escalates. In addition, our business strategy continues to demonstrate its effectiveness as we gained significant market penetration compared to last year, adding a number of SKU’s while expanding our presence on the retail shelf. Citizen Stash continues to gain recognition as a leading brand in the premium space across the country and is well positioned for future growth.”

Citizen Stash Cannabis Corp. Q3 2021 Financial Summary:

Three Month Ended

Year Ended

(000’s of Cad dollars, except per gram metrics)
August 31,
May 31,
Feb 28,
Aug 31,
Nov 30,
Grams Sold
398,702 409,335 481,632 240,017 848,008
Average Realized Price (Revenue) per Gram
7.98 8.12 8.35 8.74 8.44
Gross Revenue
3,386 3,296 4,060 2,124 7,297
Net Revenue*1
2,749 2,754 3,419 1,781 6,130
Gross Profit before Fair Value Adjustments
193 383 911 448 1,065
Selling, General and Administration Expense
915 1,595 1,018 598 3,398
Net Income / (Loss)
(1,171 ) (1,415 ) (89 ) (188 ) (5,942 )
Adjusted EBITDA *2
(1,102 ) (634 ) 36 (149 ) (1,416 )
Shares Outstanding (000’s)
101,315 100,887 100,762 100,762 100,762

*1 – Net of excise tax.

*2 – Adjusted EBITDA is a non-GAAP measure used by management that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as comprehensive loss for the period, as reported, before interest, taxes, depreciation and amortization, and adjusted by removing share-based payments, and other one- time and non-cash items, including impairment losses and inventory write-downs. See reconciliation of “Adjusted EBITDA” in the Company’s Management’s Discussion & Analysis for the period ended August 31, 2021.

  • Gross revenue increased 59% in Q3 2021 to $3.4 million compared to $2.1 million in Q3 2020.
  • Gross revenue increased 3% in Q3 2021 compared to Q2 2021.
  • In Q3 2021, the Company sold 398,702 grams of flower, which on its own represents 47% of the total grams sold for the entire fiscal year ending November 30, 2020.
  • Gross profit before fair value adjustments was $0.193 million or 7% of net revenue in Q3 2021, compared to $0.448 million or 25% of net revenue in Q3 2020, and was impacted by sales mix weighted to lower margin manual pre rolls vs 3.5g jars and by a number of one-time items, including inventory write-downs. Subsequent to quarter end, Citizen Stash has been leveraging Valen’s automated pre roll manufacturing.

Business update

Citizen Stash continues to remain focused on executing against its strategic priorities. In the third quarter of 2021, the Company made significant progress in expanding its premium supply chains, developing innovative strains and expanding its customer network, generating shareholder value and accelerating its path to profit including:

Innovative Genetics and Strain development

Citizen Stash continues to launch first to market genetics and strains and expand its premium dry flower cultivar offering with the addition of new flower listings of “Jungle Breath” and “Cookie Puss” in British Columbia and Alberta, and the addition of a new Burb branded flower strain called “Rockstar” in Ontario, increasing its listings by 18% in Q3 2021 versus Q2 2021.

Distribution Network

Citizen Stash started Q3 2021 serving seven provinces and territories but has recently been awarded distribution into both Nova Scotia and New Brunswick, bringing the total to nine provinces and territories. The Company continues to push for access into the Quebec market.

Premium Brands

Citizen Stash is one of the leading brands in the industry, known for producing top-shelf craft cannabis flower. The Company’s focus on providing new, innovative and consistent flower offerings allows the Company to maintain above average prices for its products with a net selling price of $7.98 per gram for the three months ending August 31, 2021.

About Citizen Stash Cannabis Corp.

Citizen Stash is the parent company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of Cannabis, based in Mission, B.C.

Citizen Stash is best known as a rapidly growing adult-use premium cannabis brand offered nationally in 9 provinces and territories. Citizen Stash has invested and developed a portfolio of premium cannabis genetics, strains and products with a unique growth strategy incorporating a highly scalable aggregation and distribution business model to drive revenues across its national sales network.

Citizen Stash trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “CSC” on the OTCQB Venture under the symbol “EXPFF” and on the Frankfurt Stock Exchange under the symbol “MB31”.

For further information, please visit the Company’s website or contact Investor Relations, Email: [email protected].


This news release contains “forward-looking statements” and “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of material factors, assumptions, risks and uncertainties, many of which are beyond the control of the Company.

Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “continue”, “intends”, “estimates”, “continues”, “future”, “forecasts”, “forward”, “potential”, “outlook” and similar expressions, or are events or conditions that “will”, “would”, “may”, “likely”, “could”, “should”, “can”, “typically”, “traditionally” or “tends to” occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: the proposed transaction with Valens; the Company’s growth, production capability, business strategy, product offerings and brand recognition; and the Company’s outlook, activity levels, supply chains and sales channels.

Although the Company believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements are made, undue reliance should not be placed on the forward- looking statements because the Company can give no assurances that such statements and information will prove to be correct and such statements are not guarantees of future performance. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual performance and results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: known and unknown risks, including those set forth in the filing statement dated September 25, 2017, the Company’s management information circular dated September 28, 2021 and/or the most recent annual and interim Management’s Discussion and Analysis (“MD&A”) (copies of which can be found under the Company’s profile on SEDAR at; a significant expansion of COVID-19 pandemic and the impacts thereof; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategy; integration of acquisitions, competition, and uncertainties resulting from potential delays or changes in plans with respect to acquisitions, development projects or capital expenditures and changes in legislation; stock market volatility and the inability to access sufficient capital from external and internal sources; general economic, market or business conditions including those in the event of an epidemic, natural disaster or other event; global economic events; changes to the Company’s financial position and cash flow; the availability of qualified personnel, management or other key inputs; currency exchange fluctuations; changes in political and security stability; potential industry developments; and other unforeseen conditions which could impact the Company. Accordingly, readers should not place undue importance or reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive and should refer to “Risk Factors” set out in the MD&A.

Statements, including forward-looking statements, contained in this news release are made as of the date they are given and the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Citizen Stash Cannabis Corp.

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