• Quarter growth, cash flow key metrics indicate company moving in the right direction
• Chalice reported record quarterly revenues from continuing operations of $5.5 million, increase in gross profit margin
• “Continued profitable operations and accretive acquisitions should set us up for a record-breaking second half of 2021,” says CEO

In a past Bloomberg video interview, Stonecastle Investment Management president Bruce Campbell commented on Golden Leaf Holdings (https://ibn.fm/g4jct), a premier consumer-driven cannabis company that earlier this month finalized a name change to Chalice Brands (CSE: CHAL) (OTCQB: GLDFF). In his comments, Campbell outlined what he felt needed to happen in order for the company to become a potential investment.

“The new management team that’s taken over are good operators,” said Campbell, after noting the company’s previous erractic performance. “But what we need to see from them is probably see a couple of quarters of progress, and showing that they’re heading in the right direction. And we probably need them to sort of generate some cash flow, so that they don’t have to continue to raise money. 

“When we get that, I suspect the stock prices starts to move. But it’s probably going to be a little bit of a show-me story until they get to that point,” he continued, noting that the stock was one that Stonecastle has its eyes on. “We’ve met with the management team a couple of times, and they certainly know the business and understand the business; it’s a function of sort of right sizing everything.” The leadership team that Campbell referenced has focused on doing exactly that: right sizing the company so it becomes an option that, like Campbell, savvy investors take a close look at. 

This week, Chalice released its financial and operating results for Q1 2021, with numbers that reflect the progess Campbell outlined was necessary (https://ibn.fm/ioqJg). The company reported record quarterly revenues from continuing operations of $5.5 million, a 18% year-over-year increase compared to $4.7 million for the same period in 2020, and gross profit for the quarter of $2.5 million, or 45% gross margin compared to $1.7 million, or 37% gross margin in 2020. In addition, the report noted that adjusted EBITDA of approximately 7%, or $370,000, continues the trend from Q4 2020, demonstrating that Oregon covers corporate overhead costs.

“Continued profitable operations and accretive acquisitions should set us up for a record-breaking second half of 2021,” said Chalice Brands CEO, Jeff Yapp. “We continue to look forward to favorable federal regulation changes while we grow Fifth & Root to showcase our brand portfolio nationally. Our team is energized and focused on growth as we remain disciplined in our allocation of capital.”

Chalice Brands is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with seven dispensaries in Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Chalice operates nationally through Fifth and Root and has operations in Oregon and California. 

For more information, visit the company’s website at www.ChaliceBrandsLtd.com.

NOTE TO INVESTORS: The latest news and updates relating to GLDFF are available in the company’s newsroom at https://ibn.fm/GLDFF

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