Denver CO – (NewMediaWire) – December 16, 2021 – CBD Global Sciences, Inc. (OTC: CBDNF) (CSE: CBDN) (Frankfurt:GS3), “CBD Global” or the “Company”), is pleased to share their Q3 2021 results with highlighted details on the Company’s progress. The Company filed its Q3 financials and MD&A on November 29, 2021 to the regulators and the Canadian Securities Exchange.
The financials submitted reflect some of the positive results of the debt restructuring that followed activities that dealt with the impact of the global pandemic in 2020 and the filing of Chapter 7 bankruptcies for two of its subsidiary companies in US Federal Bankruptcy courts in March of 2021.
The revenues for brands Aethics ™ (www.aethics.com) and CannaOil ™ (www.cannaoilshop.com) grinded to a halt with the bankruptcy of Global NV, a subsidiary of the Company that owned both brands. During the bankruptcy process all sales generated from those brands were the property of the estates for the two subsidiaries and were not recognized by the Company. Since then, the Company has successfully re-acquired both brands, their trademarks, URLs, websites and all related inventory from the Federal Trustee overseeing the bankruptcies of the subsidiaries. Prior to that event it was not beneficial for the Company to engage in any activities that promoted the brands while the brands were the property of the estate. This included pursuit of large retail sales and e-commerce sales. For that reason, top line revenue prior to and including Q3 2021 are lower, relative to what was seen prior to 2020. With that background information we are pleased to see in the Q3 2021 financial report signs of success that will preview more of what is to come in the new year.
Same quarter revenues increased by $20,491.00 USD for Q3 2021 and the gross profit for that activity increased by 2654%, mainly due to reduction in operating costs that resulted from proactive cost reductions in response to the global pandemic the year prior. Now that the brands are being ‘reactivated’ we anticipate improvement to both topline revenues and profit in the new year.
The acquisition of Resinosa LLC, a cGMP manufacturing company that CBDGS acquired in October 2021, will enhance both top line revenue and profitability of the Company, which should impact the financials beginning in Q4 2021.
Investors will also see an operating net income of $3,403,412.00 for Q3 2021 that is due to the positive effect of the deconsolidation of the two bankrupt subsidiaries from the Company’s financials. This will carry over to a year-to-date Operating Net Income of $1,554,502.00 USD for the company compared to a $(3,032,455.00) USD loss for same period in 2020.
For the balance sheet we reported a reduction of liabilities down from $8,747,885.00 USD to $6,157,883.00 USD YTD. This is anticipated to continue to improve through Q4 2021, all from the deconsolidation and debt restructuring efforts. When the Company’s debt restructuring activities are completed, we anticipate to report a total liability for the Company of less than $1M USD (1) as a result of the continued efforts of the company to restructure its liabilities.
Brad Wyatt, CEO of CBD Global Sciences, shared, “Our Company has endured a very tumultuous period of time with all that has transpired over the past 18 months. I am pleased to share the fruits of our labor and will highlight that the best is yet to come. I am extremely thankful for those behind the scenes that continue to support our efforts to get our Company positioned where we should be in our industry – at the top.”
ABOUT CBD GLOBAL SCIENCES INC.
CBD Global Sciences, Inc., is a hemp-based CBD producer and branding investment vehicle which currently owns two brands, branded under the name Aethics™ (www.aethics.com) and CANNAOIL (www.cannaoilshop.com), which include CBD Oil tinctures (liquid products), CBD capsules, CBD topicals, Hydration products and Confectionary products. CBD Global Sciences hemp-derived CBD extracts are sold through select distributors, brick and mortar retailers, and online.
CBD Global Sciences, through its wholly owned subsidiaries, Global Sciences Holdings, Resinosa LLC (www.resinosa.com) and Legacy Distribution Group, (www.legacydistributiongroup.com), is delivering quality CBD products both in a retail and e-commerce formats nationwide. The Direct Store Delivery (DSD) provides distribution services for multiple vendors of CBD infused products and non-CBD products throughout the Colorado and Wyoming territories that are currently servicing over 750 C-store and large box retailers with expansion plans to exceed 5,000 stores in the next 12-24 months. In addition to Legacy Distribution it has added a manufacturing division, Resinosa LLC (www.Resinosa.com ), with its capabilities to provide cGMP manufacturing to the CBD industry with both private label and white label CBD and non-CBD product lines.
(1) Excluding any new debt secured by the company to fund capital expenditures or operational overhead.
For further information, please contact Investor Relations at 720-881-2541 or email email@example.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to future developments and the business and operations of the Corporation after the CSE listing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. Readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.