World Class Provides Pineapple Express Delivery Revenue Update

Rhea-AI Summary

World-Class Extractions Inc. announced a revenue update for its subsidiary, Pineapple Express Delivery Inc. (PED), reporting a total revenue of $7.55 million for 2020. January 2021 revenues reached $926,203, a 5% increase from December 2020, with a gross margin of 27%. The number of deliveries also grew by 1% from the previous month. PED's growth is attributed to the rise in e-commerce and delivery services, especially in the cannabis sector across Ontario, Manitoba, and Saskatchewan.

Positive

• 2020 revenue for PED reached $7.55 million.
• January 2021 revenue increased to $926,203, a 5% increase from December 2020.
• Gross margin for January 2021 at 27%.

Negative

• Gross margin decreased from 34% in December 2020 to 27% in January 2021.

• Pineapple Express Delivery's revenue total $7.55M in 2020, and starts 2021 strong

VANCOUVER, BC / ACCESSWIRE / March 2, 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:

• January 2021 revenues totaled $926,203 (December 2020 - $889,935) with gross margin of 27% (December 2020 - 34%) (unaudited).
• As a result of recent COVID-19 prevention measures, B2C revenue increased approximately 5% in January 2021 over December 2020, primarily from an increase in the recreational delivery segment through geographical expansion.
• During January 2021, the number of deliveries was 71,595 compared to 70,802 in December 2020, representing an increase of 1%.
• 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. During January 2021, PED received approximately $10,000 in revenue from these operations.

Randy Rolph, Founder & CEO of Pineapple Express Delivery stated, "Delivery services have grown exponentially for several years with most consumer goods, as has been shown in the food industry. There is no question that the same is showing to be true for the cannabis and the regulated products industry with the ease and discreetness that Pineapple Express Delivery services provide. We are ramping up to meet the demands of our current and future partners, by investing into logistic technologies and processes, providing PED with a solid foundation for continued aggressive growth."

Rosy Mondin, CEO of World Class Extractions remarked, "Pineapple Express Delivery is showing significant growth since last year. We are extremely pleased with PED's overall financial results of $7.55 million in 2020, and January's strong 2021 results. The dramatic rise in the adoption of ecommerce sees no sign of abating. According to data by Accenture, there will be an increase of 169% in ecommerce purchases post-outbreak as people are poised to keep shopping online, even as shops open their doors again[1]. Additionally, a recent UK survey[2] indicates that two in five people intend to carry on purchasing goods online rather than return to stores when they re-open. Online ordering and doorstep delivery have become the new normal as patients and consumers continue to rely on convenient and sustainable delivery services."

PED is currently one of the premiere, most utilized delivery services in Ontario, and will continue to maintain its high standards of security and compliance for same day and next day parcels, even as it grows to meet provincial need. Pineapple Express Delivery is proud to be a platform that so many Canadians have been able to use to during these difficult times.

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.

[1] COVID-19: New habits are here to stay for retail consumers (August 13, 2020): https://www.accenture.com/ca-en/insights/retail/coronavirus-consumer-habits

[2] Stats roundup: the impact of Covid-19 on marketing & advertising (February 26, 2021): https://econsultancy.com/stats-roundup-coronavirus-impact-on-marketing-ecommerce-advertising/

SOURCE: World-Class Extractions Inc.

View source version on accesswire.com:
https://www.accesswire.com/632755/World-Class-Provides-Pineapple-Express-Delivery-Revenue-Update

FAQ

What were Pineapple Express Delivery's revenues for January 2021?

Pineapple Express Delivery's revenues for January 2021 amounted to $926,203.

What was the revenue for Pineapple Express Delivery in 2020?

Pineapple Express Delivery reported a total revenue of $7.55 million for the year 2020.

What caused the increase in Pineapple Express Delivery's revenues in January 2021?

The increase in revenues for January 2021 was primarily due to a 5% rise in Business-to-Consumer cannabis delivery services.

What was the gross margin for Pineapple Express Delivery in January 2021?

The gross margin for Pineapple Express Delivery in January 2021 was 27%.

How many deliveries did Pineapple Express Delivery complete in January 2021?

Pineapple Express Delivery completed 71,595 deliveries in January 2021.