Revenue growth of 7% and Adjusted EBITDA growth of 40% in advance of Nova's entry into the British Columbia market This news release constitutes a "designated news release" for the purposes of the prospectus supplement of Nova Cannabis Inc. dated July 22, 2022, to its short form base shelf prospectus dated June 27, 2022. EDMONTON, AB, May 7, 2024 /CNW/ - Nova Cannabis Inc. (the "Company" or "Nova") (TSX:NOVC) today released its unaudited condensed interim consolidated financial statements (the "interim financial statements") and management's discussion and analysis ("MD&A") for the three months ended March 31, 2024. All financial information in this press release is reported in millions of Canadian dollars and represents results from continuing operations, unless otherwise indicated. "Building on strong performance in 2023, Nova delivered continued growth in the first quarter of 2024. This growth was driven by increased proprietary data licensing revenues, coupled with strong operating discipline, resulting in a 40% increase in Adjusted EBITDA and 23% growth in gross profit," said Marcie Kiziak, CEO of Nova. "Our agreement with SNDL to own or operate four Dutch Love stores marks our entry into British Columbia, paving the way for Nova to open our first Value Buds locations in the province and further highlights the benefits of our partnership with SNDL. This move strengthens our store footprint in an impactful way, and we are excited to spread the Value Buds experience to consumers across the country." FIRST QUARTER FINANCIAL AND OPERATING HIGHLIGHTS Revenue of $64.3 million for the first quarter of 2024, a 7% increase from the first quarter of 2023, primarily driven by new locations, increasing proprietary data licensing revenue and a continued focus on margin expansion initiatives. For locations operational throughout the first fiscal quarter of 2024 and 2023, same-store sales increased 1.5% year-over-year. The Company saw meaningful growth in Ontario, where same-store sales increased 12% for stores operating in the first quarter of 2024 when compared to the first quarter of 2023. Same-store sales refers to the revenue generated by the Company's existing retail cannabis locations which operated during the current and comparative periods. Gross profit of $15.8 million (25% of revenue) for the first quarter of 2024, a 23% increase from the first quarter of 2023 from $12.9 million (21% of revenue). Gross profit improvement was driven by growth in proprietary licensing revenue, increases in same-store sales in the Ontario market, and the expansion of private label initiatives. Net loss of $0.3 million ($0.01 loss per share) in the first quarter of 2024 compared to a net loss of $0.5 million ($0.01 loss per share) in the first quarter of 2023, representing a 40% improvement year over year. Adjusted EBITDA for the first quarter of 2024 of $4.5 million (7% of revenue) compared to $3.2 million for the first quarter of 2023, an increase of 40%. Nova's proprietary data licensing program generated revenue of $3.3 million for the first quarter of 2024, compared to $1.5 million in the first quarter of 2023, representing growth of $1.8 million, or 120%. Nova's management team ("Management") estimates that its market share was approximately 19% in Alberta and 4% in Ontario for the first quarter of 2024, based on available industry data from Statistics Canada1. On April 1, 2024, SNDL and Nova announced that SNDL agreed to assign its rights to own or operate four Dutch Love stores to Nova, marking the Company's entry into British Columbia's retail cannabis market. 99 stores operating as of May 7, 2024, an increase of three stores since the beginning of 2024 through the addition of the Dutch Love stores. Cash provided by operating activities in the first quarter of 2024 of $2.8 million, a $4.2 million increase, or 300%, from the $1.4 million cash used in operating activities in the first quarter of 2023. Cash and cash equivalents of $14.2 million as at March 31, 2024. ______________________________ 1 Source: Statistics Canada: Table 20-10-0056-01 Monthly retail trade sales by province and territory (x 1,000), unadjusted, as of April 2024. SPECIFIED FINANCIAL MEASURES Certain specified financial measures in this earnings release, including Adjusted EBITDA, are non-IFRS measures and may not be comparable to similar measures reported by other companies. This non-IFRS financial measure should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS Accounting ...