SLANG Worldwide Announces Change to Financial Reporting Date and Clarification to Prior News Release
Toronto, Ontario--(Newsfile Corp. - April 11, 2021) - SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, wishes to announce that it now expects to release its financial results for the three and twelve months ended December 31, 2020 before markets open on April 29, 2021. The Company will host a conference call for the investment community that morning to discuss the financial results and provide an operational update.
The Company also wishes to clarify certain disclosure in its news release titled "SLANG Worldwide Announces Selected Preliminary Fourth Quarter and Full Year 2020 Financial Results and Corporate Updates" dated April 6, 2021 (the "April 6 News Release").
In the April 6 News Release, SLANG provided certain preliminary financial results for the three and twelve months ended December 31, 2020 with respect to revenue and Adjusted EBITDA (the "Preliminary Results"). The Company wishes to clarify that the Preliminary Results were preliminary unaudited financial results that are subject to customary financial statement procedures by the Company. Accordingly, actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for the Preliminary Results, such results involve known and unknown risks and uncertainties that may cause actual results to differ materially.
The Company also wishes to clarify that Adjusted EBITDA is a non-IFRS (as defined herein) financial measure that the Company uses to assess its operating performance. Management defines Adjusted EBITDA as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense 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 was furnished to provide additional information and is a non-IFRS measure and does not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS"). The Company uses this non-IFRS measure 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 this non-IFRS measure in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. Accordingly, 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. There are important components of Operating Income / (Loss) that are currently in process of determination. Therefore, a reconciliation of the range of Adjusted EBITDA to Operating Income / (Loss) cannot be provided at this time. A full reconciliation of Adjusted EBITDA to Operating Income / (Loss) will be provided when actual results are released. Please refer to the Company's management's discussion & analysis for the three and nine months ended September 30, 2020 available on SEDAR at www.sedar.com, and on the Company's Investor Relations website at www.slangww.com for additional discussion of non-IFRS measures and their reconciliations
The Preliminary Results represent forward-looking information. Please see "Forward-Looking Statements" and "Financial Outlook" in this news release.
These clarifications do not change any other information contained in the April 6 News Release.
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. The Company 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 www.slangww.com.
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 in this news release and the April 6 News Release include, but are not limited to, statements regarding the Company's expected performance for the three and twelve months ended December 31, 2020, including with respect to revenue and Adjusted EBITDA.
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 SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019 and three and nine months ended September 30, 2020 and other disclosure document available on the Company's profile on SEDAR at www.sedar.com. 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.
This news release and the April 6 News Release contain a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the three and twelve months ended December 31, 2020 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Forward-Looking Statements" above and assumptions with respect to market conditions, pricing, and demand. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Forward-Looking Statements" above, it should not be relied on as necessarily indicative of future results.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/80084