SLANG Worldwide Announces Second Quarter 2022 Financial Results

Successful Operational Transformation Leads to Continued Margin Improvement

August 25, 2022 8:00 AM EDT | Source: SLANG Worldwide Inc.

Toronto, Ontario--(Newsfile Corp. - August 25, 2022) - SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today released financial results for the three and six months ended June 30, 2022. All figures in this press release are stated in Canadian dollars unless otherwise noted.

Drew McManigle, Interim CEO and Chairman of SLANG, said, "The success of our operational transformation implemented at the end of 2021 continues to be reflected in our quarterly financial results. In the second quarter, we maintained higher growth margins of 46%, demonstrating a year-over-year increase of 31% and gross profit of $4.49 million, compared to $3.67 million a year ago, representing an increase of 22%. With operating efficiencies and a streamlined infrastructure in place, we are in the right position to achieve ongoing top and bottom-line growth as we leverage a stronger operational footprint and introduce new products to the market."

"The SLANG brand has never been stronger. Not only are we celebrating 10 years of success of our O.pen brand, we recently announced the launch of our Alchemy Naturals, our new THC and CBD Gummy line in Colorado. With the support of a strengthened management team, new Board of Directors and reshaped sales group, we are strategically elevating SLANG's market position."

"From an operational standpoint, this has been a strong quarter and we are now advancing upon a number of potential growth opportunities to build on this success. Our Board of Directors has recently established an M&A committee chaired by Kevin Albert and will continue to focus on new M&A opportunities while we organically grow our most popular brands. I am proud of the progress we have made, and the position SLANG is now in. I look forward to sharing our continued progress and the new level of growth we are set to achieve," concluded McManigle.

Second Quarter 2022 Operational Highlights and Growth Drivers:

  • Expansion of Vermont Cultivation Facility to prepare for the harvest the Company's first crops in preparation for receiving the Company's recreational license expected in Q4 2022.

  • Revitalized Approach to Sales Strategy in Colorado, including an optimized sales structure and new sales manager to drive revenue within the state.

  • Key Additions to Board of Directors to build upon and work hand in hand with the already strengthened management team put in place, along with a newly formulated M&A and Investment Committee led by new board member Kevin Albert.

Subsequent Quarterly Operational Highlights:

  • Strengthened the SLANG brand portfolio by formulating, developing and rolling out Alchemy Naturals THC and CBD gummies into Colorado's USD$371 million edibles market and CBD locations throughout the country.1

  • Celebrating 10 years of the O.pen brand, one of the industry's leading cannabis vaporizer brands which is recognized for its superior vaporizing pens and higher-quality oils.

Second Quarter 2022 Financial Highlights

  • Revenue from continuing operations for Q2 2022 was $9.87 million, compared to Q2 2021 revenue of $10.50 million.

  • Gross profit of $4.49 million (46% gross margin) in Q2 2022, compared with $3.67 million (35% gross margin) in Q2 2021, representing a 22% increase year-over-year and 31% increase in gross margin.

  • EBITDA of $7.66 million in Q2 02022, compared with ($3.16 million) in Q2 2021.

  • Operating expenses from continuing operations was reduced by $0.43 million, or 6%, in Q2 2022 when compared to Q1 2022 (excluding the $8.72 million recovery of previous credit losses), marking the Company's second consecutive quarterly operating expense reduction, which is a result of the cost cutting and restructuring initiatives implemented in Q4 2021 and Q1 2022.

  • $15.72 million in cash and restricted cash on June 30, 2022, compared to $20.83 million on December 31, 2021 and $16.56 million on March 31, 2022.

Second Quarter 2022 Consolidated Financial Statements

The consolidated financial statements were prepared in accordance with IFRS. The following is selected presentation of the Income Statement for the three months ended June 30, 2022.

3 months ended 30-Jun-223 months ended 30-Jun-21
(In thousands except per share data and percentages) CDN$CDN$
Net Operating Revenue from Continuing Operations$9,868$10,497
Cost of Goods Sold5,6016,827
Gross Profit Before Gain on Fair Value of Biological Assets4,2673,670
Realized fair value amounts included in inventory sold(580)-
Unrealized gain on fair value of biological assets806-
Gross Profit4,4933,670
Gross Profit Margin46%35%
Operating expenses(1,664)8,632
Operating Loss6,157(4,962)
Other items (Impairment, FV adjustment, FX, gains/losses, taxes, etc.)9,700(302)
Total Comprehensive Income (Loss)(3,543)($4,660)
Earnings Per Share
Basic ($0.03)($0.05)
Diluted ($0.03)($0.05)


3 months ended 30-Jun-223 months ended 30-Jun-21
(In thousands except per share data and percentages)CDN$CDN$
Total Comprehensive Income (Loss)(3,543)($4,660)
Adjusted EBITDA (478)(903)


See the Company's management's discussion and analysis for the three months ended June 30, 2022 (the "Q2 2022 MD&A") for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG's financial statements and the Q2 2022 MD&A are available on SEDAR at, and on the Company's Investor Relations website at

Non-IFRS Measures

EBITDA and Adjusted EBITDA are non-IFRS financial measures that the Company uses to assess its operating performance. EBITDA is defined as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense. Management defines Adjusted EBITDA as EBITDA adjusted for other non-cash items such as the impact of unrealized fair values, share based compensation expense, impairments, one-time gains and losses, and one-time revenues and expenses. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.

Conference Call Details

Management plans to host an investor conference call today, August 25, 2022 at 10:00am ET to discuss the results.

Timing: Thursday, August 25, 2022 at 10:00am ET
Dial-in:1(888) 440-5983 (US toll-free) or 1(646) 960-0202
Conference ID: 6291438
Webcast:A live webcast can be accessed via the Company's website at or at

A replay of the webcast will be archived on the Company's website for one year.

About SLANG Worldwide Inc.

SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. SLANG specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. For more information, please visit

To be added to SLANG's email distribution list, please email with "SLNG" in the subject.

Forward-Looking Statements

This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in the Q2 2022 MD&A and other disclosure documents available on the Company's profile on SEDAR at SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Third Party Information

This press release includes market and industry data that has been obtained from third party sources, including industry publications. The Company believes that the industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, the Company has not independently verified any of the data from third party sources referred to in this press release or ascertained the underlying economic assumptions relied upon by such sources.

Media and Investor Inquiries

KCSA Strategic Communications
Phil Carlson


1. BDSA Colorado

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