Chalice Brands Ltd - CHALF STOCK NEWS

Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) has terminated its agreements with Miracle Greens, Inc. and Totem Farms, LLC, effective September 9, 2022. The termination was executed under the Company’s rights without incurring termination fees. Chalice Brands remains committed to enhancing shareholder value by focusing on its core business and operational efficiency. The Company operates 16 dispensaries around Portland, Oregon, and is dedicated to offering a robust portfolio of cannabis products geared towards health and wellness.

Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) issued an open letter to shareholders discussing operational transparency and industry challenges. The letter highlights declining cannabis sales in Oregon due to macroeconomic pressures like inflation and increased competition. Notably, dispensary revenue showed a 45.1% increase in Q1 2022 to $5.3 million, largely due to the Homegrown Oregon acquisition. Despite these challenges, Chalice emphasizes its commitment to operational efficiency, brand recognition, and cost reductions, while preparing for a more robust financial position following a change in auditors.

Chalice Brands Ltd. (CSE: CHAL, OTCQB: CHALF) announced the appointment of M&K CPAS, PLLC as its new auditor, effective August 10, 2022. This decision follows delays in completing the fiscal audit for 2021, prompting the resignation of the former auditor, Baker Tilly US, LLP. No audit reports had been issued by the former auditor, and there are no reported events affecting the company’s financial statements. Chalice Brands specializes in cannabis production and retail, operating 12 owned and 6 managed dispensaries in Oregon.

Chalice Brands announced on July 1, 2022, an amending agreement to enhance its prior Asset Purchase Agreement to acquire four Cannabliss & Co. retail stores from Acreage Holdings for US$6.5 million. This transaction aims to align payment terms with anticipated cash flows and expand Chalice's retail presence in Oregon to 18 locations. The agreement requires approval from the Oregon Liquor and Cannabis Commission, expected in the next 30 days. The acquisition features a secured promissory note of 12% annual interest, allowing Chalice to avoid shareholder dilution.

Chalice Brands Ltd. (CSE: CHAL, OTCQB: CHALF) announced plans to acquire two retail stores in Bend and Corvallis, Oregon, and cultivation assets in Grants Pass from Miracle Greens, Inc. and Totem Farms, LLC for US$2.63 million. The agreement includes a 50% cash payment of US$1.31 million at closing and the remainder split between equity and a promissory note. This acquisition will expand Chalice's retail presence to 18 stores and significantly increase its cultivation capacity, enhancing its market position in the Oregon cannabis sector.

Chalice Brands Ltd. (CSE: CHAL, OTCQB: CHALF) reported record revenues of $8.9 million for Q4 2021, a 61% increase from $5.5 million in Q4 2020. Total annual revenue reached $29.3 million, up 34% year-over-year. The gross profit margin for Q4 was 41%, improving from 30% in the previous year. Chalice remains optimistic despite a 6% decline in overall sales in the Oregon market. The company anticipates its first adjusted EBITDA-positive year and continues to enhance its product mix and retail strategies.

Chalice Brands Ltd. (OTCQB: CHALF) provided a shareholder update detailing significant achievements in 2021, positioning the company for growth in 2022. Key highlights include raising C$3.4 million and C$10.3 million through private placements, acquiring majority ownership of Fifth & Root, and experiencing a 43% revenue increase during the 4/20 holiday. The company reported Q1 revenues of $5.5 million and Q2 revenues of $6.9 million, among other strategic advancements. Chalice plans to continue its growth through acquisitions and the launch of a flagship superstore.

Chalice Brands Ltd. (CSE: CHAL) (OTCQB: CHALF) has secured regulatory approvals to finalize its acquisition of Tozmoz, LLC, enhancing its cannabis product offerings. The deal includes 1,268,116 Chalice shares, a 48-month promissory note of $400,000 at 6% interest, and the forgiveness of $650,000 in notes owed to Chalice. This strategic acquisition strengthens Chalice's capabilities in extraction and product formulation and positions the company for further market expansion on the West Coast.