CANADA HOUSE WELLNESS GROUP RELEASES Q2 2022 RESULTS, A 126% INCREASE IN REVENUES COMPARED TO Q2 2021 RESULTS

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LOUISEVILLE, QC, 23 December 2021 / CNW / – Canada House Wellness Group Inc. (CSE: CHV) (“Canada lodge“or the”Society“) is pleased to report its financial results for the three months ending October 31, 2021. All amounts are expressed in thousands of Canadian dollars. Full details can be found at www.sedar.com.

Canada House logo (CNW Group / Canada House Wellness Group Inc.)

Financial Highlights:

  • The turnover was $ 5,106, an augmentation of $ 2,843 or 126%, compared to $ 2,263 during the same period of the previous year.

  • Loss and aggregate loss for the three months ending October 31, 2021 has been $ 3,377, an augmentation of $ 1,318 or 64% compared to a loss of $ 2,059 during the same period in 2020. The loss and overall loss for the three months included a write-down of inventories of $ 1,344. Without the inventory depreciation, the loss and aggregate loss for the three months would have been $ 2,033.

  • Cash flows used in operating activities were $ 1,727, a decrease in $ 961 or 36%, compared to $ 2,688 during the same period in 2020.

  • Cash flows used in investing activities have been $ 613 compared to $ 224 during the same period in 2020.

  • The net cash used in financing activities was $ 1,379 compared to $ 2,761 during the same period in 2020.

  • Equity was a surplus of $ 1,229 compared to $ 6,873 from April 30, 2021.

  • The cash was $ 874 like a October 31, 2021 compared to $ 1,835 like a April 30, 2021.

“We are very pleased with the revenue growth we are seeing in the medical and recreational cannabis markets, as evidenced by our consolidated sales which more than doubled compared to the same period last year. We are just starting to see the positive financial impact of significant growth in the adult market with strong reviews and strong demand for our product offerings in nine Canadian provinces, ”commented Chris Churchill Smith, CEO of Canada House. “We continue to receive positive reviews on Abba’s platform and product offering, with medical sales growing at a steady rate. We look forward to continuing our success and demonstrating the best results in the industry as we finalize and integrate the MTL Cannabis transaction. “

Company Highlights:

  • At August 9, 2021, Canada House and MTL Cannabis have entered into a definitive share exchange agreement for the acquisition by Canada House of all of the issued and outstanding shares of MTL Cannabis (the “”TransactionThe transaction is between parties at arm’s length and constitutes a “reverse takeover” of the company, and it is expected that the company will operate under the trade name of MTL Cannabis with shares traded on the CSE under a Related ticker symbol after closing Canada House expects the transaction to close in the first calendar quarter of 2022.

The Company also announced that prior to the maturity of its outstanding convertible debentures dated December 5, 2017 (the “2017 debentures“), the Company has corresponded with the other holders of 2017 Debentures and the proposed convertible debenture modification agreements (the”Amending Agreements“) to: i) extend the maturity date of the 2017 Debentures to December 5, 2022; ii) increase the interest rate on the principal amount outstanding from 8.5% per annum to 18.0% per annum from December 5, 2021; (iii) remove the conversion right under the debenture; and, iv) reaffirm the obligations of the Company under the 2017 Debentures. Since the maturity date of the 2017 Debentures has passed without payment of amounts due at maturity, the Company is in default under the 2017 Debentures. and will continue to be so until the Company pays the amounts due at maturity or enters into agreements regarding extensions of the due date. If the Company is unable to enter into amendment agreements with all holders of the 2017 Debentures to extend the maturity date of the 2017 Debentures, the principal and interest of the 2017 Debentures not subject to such extensions will be due and payable and the holders of the 2017 Debentures may exercise rights to compel payment thereof.

About Canada House Wellness Group

Canada House Wellness Group is the parent company of Abba Medix Corp., a licensed producer in Pickering, Ontario that produces high quality medical grade cannabis; IsoCanMed Inc., a licensed producer in Louiseville, Quebec Grows Premium Quality Cannabis in Its 64,000 Square Foot Indoor Production Plant; Canada House Clinics Inc., with clinics across the country working directly with primary care teams to provide specialized cannabinoid therapy services to patients with simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that connects physician, provider, and patient to data that supports treatment with medical cannabis.

The goal of Canada House Wellness Group is to become the leading premium artisanal cannabis grower and provider of cannabinoid therapy, targeting medical cannabis markets globally. Please visit www.canadahouse.ca or the Company’s public documents at www.sedar.com.

Caution regarding forward-looking information. This press release contains forward-looking statements, including statements that relate to, among other things, the Company’s clinical, production and technological activities, future plans, markets, objectives, goals, strategies, intentions, beliefs, expectations and Company estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect” to “,” intend “,” estimate “,” anticipate “,” believe “,” plan “,” objective “and” continue “(or the negative thereof) and words and expressions of similar significance . Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties, and such statements should not be relied upon. Certain important factors or assumptions are applied in forward-looking statements, and the actual results little may differ materially from those expressed or implied in such statements. Significant assumptions used to develop forward-looking information in this press release include, among others, the closing of the transaction with MTL Cannabis and obtaining all regulatory and shareholder approvals associated therewith, consumer regulations. cannabis under the Access to the Cannabis for Medical Purposes Regulations and the Cannabis Act and amending the Controlled Drugs and Substances Act, the Criminal Code and other Acts, adopted by the Canadian federal government, legalizing cannabis and cannabis edibles, vapes and recreational oils on Oct. 17, 2018 and October 17, 2019; The company’s liquidity and capital resources, including the availability of additional capital resources to finance its activities; level of competition; the ability to adapt products and services to changing market conditions; the ability to attract and retain key leaders; and the ability to execute strategic plans. Additional information on material factors that could cause actual results to differ materially from expectations and on material factors or assumptions applied in making forward-looking statements can be found in the most recent annual and interim MD&A of the Company under “Risks and Uncertainties” as well as in other public information documents filed with Canadian securities regulators. The Company assumes no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

Neither CSE nor its regulatory services provider (as that term is defined in CSE policies) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canada House Wellness Group Inc.

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