World Class Provides Pineapple Express Delivery Revenue Update

Rhea-AI Summary

Pineapple Express Delivery reported revenues of $2.77 million for January-April 2021, with April alone contributing $966,661. The company's gross margin remained stable at 24%. An increase of 18% in deliveries was noted, totaling 65,768 compared to March. However, COVID-19 restrictions led to a temporary suspension of same-day delivery, impacting revenue expectations. Additional revenue of $52,400 was generated from software licensing. The company issued 2 million stock options at an exercise price of $0.05 per share.

Positive

• Revenue growth for April 2021, totaling $966,661, up from $817,561 in March.
• Total revenue of $2,769,823 from January to April 2021.
• 18% increase in deliveries from March to April 2021.
• Additional revenue of $52,400 from software licensing.

Negative

• Temporary suspension of same-day delivery due to COVID-19 restrictions affected revenue.
• Halting of supplies for three days in March due to inventory counts impacted delivery volumes.

Pineapple Express Delivery's revenue total $2.77M January - April 2021

VANCOUVER, BC / ACCESSWIRE / June 1, 2021 / World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) ("Company" or "World-Class"), is pleased to provide an update on Pineapple Express Delivery Inc. ("Pineapple Express Delivery" or "PED"), a company in which World-Class has a controlling interest. PED is a leading logistics technology company offering compliant and secure delivery of controlled substances and regulated products, including medical and recreational cannabis delivery in Ontario, Manitoba and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.

Pineapple Express Delivery - Highlights

The following PED revenues comprise of delivery services of medical and recreational cannabis within Ontario and Manitoba to various Business-to-Consumer and Business-to-Business licensed producer companies and liquor deliveries in Saskatchewan:

• April 2021 revenues totaled $966,661 (March 2021 - $817,561) with gross margin of 24% (March 2021 - 24%) (unaudited).

• During April 2021, the number of deliveries was 65,768 compared to 55,738 in March 2021, representing an increase of 18%.

• Revenue from January to April 2021 totaled $2,769,823.

• As a result of recent COVID-19 restrictions in Ontario, same day delivery service was temporarily suspended, resulting in less than expected revenue during this period. Further, due to a major distributors' year-end in Ontario, supplies were halted for three days in March to conduct inventory counts, contributing to lower volumes and revenue. PED anticipates that monthly revenues for the remainder of 2021 will strengthen as same day delivery services are reinstated.

• PED previously entered into a licensing agreement to provide software and support services to an arm's length party. PED provides the set-up, implementation and development of the software and provides support to all locations catered to by the other party. From January to April 2021, PED received approximately $52,400 in additional revenue from these operations.

Rosy Mondin, CEO of World Class Extractions remarked, "World-Class is pleased with PED's financial results of $2.77M from January-April 2021. PED continues to expand its network to meet the demands of current and future partners, and to ensure that patients and consumers receive their regulated product orders as quickly, safely and as easily as they can obtain any other product in Canada. We are proud that Pineapple Express Delivery is a platform that many Canadians rely on for convenient, safe and secure delivery."

Furthermore, the Company announces that it has granted a total of 2,000,000 incentive stock options to certain consultants and employees of the Company. The options have an exercise price of $0.05 per share and expire June 1, 2026. The options will vest at a rate of 50% upon the date of the grant and an additional 25% vesting every six months thereafter.

About World-Class

World-Class is an innovation-driven company with a principle focus on the rapidly evolving cannabis and hemp industries. World-Class offers compliant and secure delivery of government regulated products through its subsidiary Pineapple Express Delivery Inc., including medical and recreational cannabis in Ontario, Manitoba and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan. World-Class continues to investigate opportunities to deploy and manage custom-built extraction centres utilizing its custom systems, technology, and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products.

Contact

World-Class Extractions Inc.
1-437-266-1968 | ir@worldclassextractions.com
www.worldclassextractions.com
https://pineappleexpressdelivery.com/

The Company cautions that figures for revenue, gross margin and number of deliveries generated from the services offered by Pineapple Express Delivery have not been audited beyond April 30, 2020 and are based on calculations prepared by the management of Pineapple Express Delivery. Actual results may differ from those reported in this release once figures have been audited.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws, and the ability of Pineapple Express Delivery to expand its delivery services and to provide discrete shipment of products. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company's public filings under the Company's SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

SOURCE: World-Class Extractions Inc.

View source version on accesswire.com:
https://www.accesswire.com/649824/World-Class-Provides-Pineapple-Express-Delivery-Revenue-Update

FAQ

What were Pineapple Express Delivery's revenues from January to April 2021?

Pineapple Express Delivery reported revenues totaling $2.77 million from January to April 2021.

How much revenue did Pineapple Express Delivery generate in April 2021?

In April 2021, Pineapple Express Delivery generated $966,661 in revenue.

What is the impact of COVID-19 restrictions on Pineapple Express Delivery's operations?

COVID-19 restrictions led to a temporary suspension of same-day delivery, which affected revenue expectations.

What was the increase in deliveries from March to April 2021?

The number of deliveries increased by 18%, from 55,738 in March to 65,768 in April 2021.

What stock options were granted by World-Class Extractions related to Pineapple Express Delivery?

World-Class Extractions granted 2,000,000 incentive stock options with an exercise price of $0.05 per share.