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CanadaBis Capital With its wholly owned Sub. (STIGMA GROW) Announces Revenue Q3 F2025 Resulting in Positve Adjusted EBITDA of $440,665.00 with Gross sales of $5.5 Million as well as 6% increase in Gross Earnings over the prior periods

CanadaBis Capital Inc. logo (CNW Group/CanadaBis Capital Inc.)

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CanadaBis Capital Inc.

Jul 02, 2025, 07:30 ET

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CALGARY, AB, July 2, 2025 /CNW/ - CanadaBis Capital (the "Company" or "CanadaBis Capital") (TSXV: CANB) a premium cannabis and concentrates producer, is pleased to announce its First Quarter Fiscal 2025 financial results for the three month period ending April 30, 2025.

CanadaBis Capital (TSXV: CANB), a leading player in the cannabis sector, has released its financial results for the three and nine months ended April 30, 2025. Despite a challenging market environment, the Company is pleased to report an adjusted EBITDA of positive $440,665 for Q3 2025, demonstrating resilience and operational efficiency.

Travis McIntyre, CEO of CanadaBis Capital, stated, "Our ability to achieve positive EBITDA in this challenging market is a testament to our team's dedication and our strategic focus on cost management and product innovation. The successful launch of our diamond and Keef-coated pre-rolls not only showcases our commitment to quality but also our responsiveness to market trends. The improvement in gross profit as a percentage of revenue reflects our operational efficiency. As we prepare to introduce our revolutionary vape hardware later this year, we look forward to re-establishing Stigma Grow's presence in the vape market with our innovative and high-quality offerings. As we continue to reduce our debt and optimize our operations, we are well-positioned for future growth."

Financial Highlights:

Gross Revenue: CanadaBis achieved gross revenue of $5.5 million for Q3 2025, reflecting a strategic decision to delist marginally profitable SKUs from provincial boards amid seasonally weak cannabis sales.

Gross Revenue and Net Income Insights:
- Efficiency Improvement: Gross profit as a percentage of gross revenue increased by 6%, indicating a significant enhancement in operating efficiency during this period.

- Cost Savings: The Company successfully reduced Selling, General and Administrative expenses (SG&A) to $1.4 million, a significant decrease of 30% from $1.8 million in the same period last year. This cost control initiative has been crucial in maintaining positive EBITDA levels.

- Adjusted EBITDA: Despite the decrease in revenue, adjusted EBITDA remained robust at $440,665, staying on track with comparative quarters with higher gross revenue showing that cost cutting measures and optimization strategies are working giving way for larger up side in future periods.

- Debt Reduction: CanadaBis has made significant strides in improving its financial health by reducing its short-term debt by $2.5 million during the quarter.

- Product Launch: The Company successfully launched its new line of 50's diamond and Keef-coated pre-rolls, which have been sold out multiple times throughout the later part of the quarter, underscoring strong market demand.

- Innovative Vape Hardware: CanadaBis is excited to announce the upcoming launch of its revolutionary vape hardware later this year. This initiative aims to bring the Stigma Grow brand back into the vape market space, offering innovative hardware known for its quality and cutting-edge design.

- Liquidity Position: In early April 2025, CanadaBis closed a brokered private placement, raising gross proceeds of $4,035,000 from the issuance of 4,035 unsecured 11% convertible debentures. This financing has strengthened the Company's short-term liquidity, positioning it for strategic growth opportunities.

-Operational Focus:
CanadaBis continues to focus on optimizing its operations through input and manufacturing cost control, SKU rationalization, and effective inventory management. The total SKU count in the Company's three largest provinces has been reduced to 83 as of April 30, 2025, from 111 as of January 31, 2025.

The Company is now evaluating opportunities to expand its offerings in flower sales and licensing its brands internationally, in addition to bulk extract sales through business-to-business channels domestically.

-Outlook:
Looking ahead, CanadaBis Capital remains committed to navigating the current market landscape while positioning itself for long-term growth. We believe our strategic management decisions and cost-saving initiatives will continue to support our operational efficiency, enabling us to leverage future opportunities in the evolving cannabis sector.

About CanadaBis Capital Inc.
CanadaBis Capital Inc. (TSXV: CANB) is a vertically integrated Canadian cannabis company focused on achieving large-scale growth in the global cannabis market producing high-quality cannabis products and building a portfolio of trusted brands. CanadaBis is committed to delivering value to shareholders and exploring innovative pathways for growth.

Subsidiaries:

  • Stigma Pharmaceuticals Inc. – 100% held;
  • 1998643 Alberta Ltd. (operating as "Stigma Grow") - 100% held; include cultivation and wholesale, extraction and tolling
  • Full Spectrum Labs Ltd. (operating as "Stigma Roots") - 100% held;
  • 2103157 Alberta Ltd. (operating as "INDICAtive Collection") -100% held; the retail operation, and
  • Goldstream Cannabis Inc. - 95% held.

Acting as the cornerstone for everything they offer, Stigma Grow continuously strives to address the market demands and lingering stigmas within the legal cannabis industry head-on, with products designed to disturb the status quo and dramatically shift the conversation surrounding Canada's legal cannabis industry.

CAUTIONARY STATEMENT

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the three and six months ended Oct 31, 2024. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.

Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs.

REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include but are not limited to statements with respect to our business and operations; timing of the Sundial products coming to market; the demand and market for live-resin vape cartridges, and our general business plans. Forward-looking statements are necessarily based upon a number of assumptions including: the ability of the Company's products to compete with the pricing and product availability on the black-market; the market demand for the Company's products; and assumptions concerning the Company's competitive advantages. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: compliance with extensive government regulation, the general business, economic, competitive, political and social uncertainties; ability to sustain or create a demand for a product; requirement for further capital; delay or failure to receive board, shareholder or regulatory approvals; the results of operations and such other matters as set out in the Company's continuous disclosure on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although we believe that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have a material adverse effect on our future results, performance or achievements.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

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

SOURCE CanadaBis Capital Inc.

For more information on CanadaBis Capital or Stigma Grow visit: www.canadabis.com, www.stigmagrow.ca or contact: Travis McIntyre, CEO, [email protected], Investor Relations [email protected] 1-888-STIGMA1

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CanadaBis Capital Inc.

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