Icanic Brands Provides Corporate Update and Financial Guidance

VANCOUVER, British Columbia, May 26, 2022 (GLOBE NEWSWIRE) -- Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF) ("Icanic Brands" or the "Company"), a brand operator of premium cannabis brands in California including Real Deal Resin, Ganja Gold, Taylors, Heady, Paleo Paw and LEEF, is pleased to provide the following corporate update and revenue forecast for the three-month period ending July 31, 2022 and for the fiscal year ending July 31, 2023. These financial results reflect the first full quarter and fiscal year of Icanic Brands combined with its recent acquisition of LEEF Holdings, Inc. ("LEEF"), a California based extractions company.

"With the merger of LEEF Holdings now complete, Icanic Brands is on the cusp of a true inflection point for our business. The upcoming fourth quarter will be our first as a combined unit and we are excited to exhibit what Icanic Brands is capable of as we continue to integrate our businesses," said Brandon Kou, CEO of Icanic Brands. "In a very challenging environment, we believe that we have created one of the best foundations in the state of California that positions the Company for significant growth over the coming years. Icanic Brands will now leverage its robust supply chain and manufacturing platform by focusing its efforts on growth both organically, through our internal portfolio of brands, as well as through an aggressive M&A strategy that will seek out high margin brands that can further add to the Company's overall capabilities."

California Infrastructure

• Flower Supply Chain ? Internal and external supply chain comprised of over 200 cultivation relationships as well as a 186-acre cultivation site in Santa Barbara and a pending 20 acre cultivation facility from pending Lifted Organics acquisition.
• Manufacturing ? One of the most sophisticated lowest cost manufacturing companies in California operated by an experienced management team and ability to scale by utilizing additional existing capacity that is currently only operating at 35%.
• Brand Growth ? Opportunity to grow internal brand portfolio both through organic growth and acquisition in order to capitalize on existing internal manufacturing and packaging capacity.
• Distribution ? Leverage over 500 active B2B distribution points as well as over 550 historical dispensary points of sale.

Strengths

• Extraction ? One of the leaders in California currently supplying 36% of the total concentrate market in the state with capabilities including ethanol extraction, hydrocarbon, and solventless.
• Edibles ? State of the art industrial kitchen with the ability to produce gummies, chocolates and other in demand products.
• Pre roll manufacturing ? Best in class pre roll technology including manufacturing, labeling and capping.
• Robust supply chain including one of the largest cultivation sites in California at 186 acres
• Pending 20-acre active cultivation facility from pending Lifted Organics acquisition.
• Growing internal portfolio of leading brands including Real Deal Resin and Ganja Gold.
• Client partners including 8 of the top 10 vape brands and 8 of the top 10 concentrate brands in California.
  

Operations

• Willits, CA ? Manufacturing, distribution and retail.
• Sacramento, CA ? Manufacturing and distribution.
• Concord, CA ? Manufacturing
• Santa Barbara, CA ? Cultivation
• San Diego, CA ? HQ Wellness
• Las Vegas, NV ? Manufacturing, distribution and cultivation (license transfer pending)

Corporate Strategy

• Make Icanic Brands the lowest cost provider and supply chain manufacturer in the state of California
• Leverage infrastructure to launch CPG brands at competitive prices while maintaining industry leading gross margins
• Execute on extensive M&A opportunities from long standing industry relationships
• Grow portfolio of internal brands to leverage manufacturing and packaging capacity
• Integrate M&A while reducing redundancies and focusing on singular management team to increase bottom line
  

Q4 Financial Guidance

For the fourth quarter ended July 31, 2022, Icanic Brands is forecasting revenues of $12.3 million with cost of sales forecasted to be $5.7 million and gross profits of $6.6 million. For the period the Company is forecasting other expenses of $5.0 million and EBITDA of $1.6 million. All figures in Canadian dollars.

Long Term Forecasts

About Icanic Brands Company Inc.

Icanic Brands Company Inc. is a cannabis branded products manufacturer based in California, the largest cannabis markets in the world. The company's mission is to build a great cannabis company with great people and great results.

For more information, please visit the company's website at: www.icaninc.com.

About LEEF

LEEF Holdings, Inc. ("LEEF"), a wholly owned subsidiary of Icanic Brands Company Inc. (CSE: ICAN, OTCQB: ICNAF), is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. It is led by an expert group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices. LEEF's manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and concentrate extraction capability.

For more information about LEEF, visit their website at www.leefca.com.

About Ganja Gold

Ganja Gold, a wholly owned subsidiary of Icanic Brands Company Inc. (CSE: ICAN, OTCQB: ICNAF), is the premier brand of infused pre-rolls in the state. Ganja Gold focuses on using only the best available flower and concentrates with state-of-the-art proprietary technology to create connoisseur level pre-rolls unseen in the marketplace. With our flagship Tarantulatm, Ganja Gold continues to set the bar in quality and experience.

For more information about Ganja Gold, visit their website at www.ganjagold.com.

About de Krown Enterprises LLC

de Krown Enterprises LLC ("de Krown"), a wholly owned subsidiary of Icanic Brands Company Inc. (CSE: ICAN, OTCQB: ICNAF), is a California-based manufacturing partner and brand owner. de Krown has the expertise to provide all types of cannabis services including pre-roll manufacturing, cartridge filling, product packaging, extraction, terpene extraction and topicals/edibles.

For more information about de Krown, visit their website at www.dekrown.com.

ICANIC BRANDS COMPANY INC.

For further information about Icanic Brands, please contact the Company at:
Email: [email protected]
Phone: (778) 999-4226

The CSE does not accept responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws (collectively, "forward-looking information"). Forward-looking information are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this news release includes, without limitation, statements relating to the excepted revenue, cost of sales and gross profits of the Company for the three months ended July 31, 2022 and the fiscal years ended July 31, 2022, 2023 and 2024, the growth of the California consumer segment of the California cannabis market, the anticipated consolidated financial results associated with the business of LEEF, and the Company's business and strategic plans. Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to the ability of the Company to execute its business plan, the continued growth of the medical and/or recreational cannabis markets in the countries in which the Company operates or intends to operate and LEEF maintaining its existing cannabis licenses. The Company considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation: the ability of the Company to integrate the LEEF business into its existing operations and to realize the expected benefits and synergies of the acquisition; unexpected disruptions to the operations and businesses of the Company and/or LEEF as a result of the COVID-19 global pandemic or other disease outbreaks including a resurgence in the cases of COVID-19; engaging in activities considered illegal under United States federal law; the ability of the Company to comply with applicable government regulations in a highly regulated industry; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of cannabis in the United States, or any other foreign jurisdictions in which the Company intends to operate; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of adult-use recreational cannabis in the United States or Canada; any change in accounting practices or treatment affecting the consolidation of financial results; the Company's reliance on management; inconsistent public opinion and perception regarding the use of cannabis; perceived effects of medical cannabis products; adverse market conditions; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; costs of inputs; crop failures; litigation; currency fluctuations; competition; availability of capital and financing on acceptable terms; industry consolidation; loss of key management and/or employees; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. For more information on the Company and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

Financial Outlook

The Company and its management believe that the estimated revenues contained in this press release are reasonable as of the date hereof and are based on management's current views, strategies, expectations, assumptions and forecasts, and have been calculated using accounting policies that are generally consistent with the Company's current accounting policies. These estimates are considered future-oriented financial outlooks and financial information (collectively, "FOFI") under applicable securities laws. These estimates and any other FOFI included herein have been approved by management of the Company as of the date hereof. Such FOFI are provided for the purposes of presenting information about management's current expectations and goals, the consolidation of revenue from LEEF, increased sales and market growth in California and the future business of the Company. However, because this information is highly subjective and subject to numerous risks, including the risks discussed above under "Disclaimer for Forward Looking Statements", it should not be relied on as necessarily indicative of future results. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the FOFI prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although management of the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any FOFI, whether as a result of new information, future events or otherwise, except as required by securities laws.

Non-IFRS Measures

This press release includes reference to "EBITDA" which is a non-International Financial Reporting Standards ("IFRS") financial measures. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. The Company defines EBITDA as earnings before interest, tax, depreciation and amortization. EBITDA has no direct, comparable IFRS financial measure. The Company has used or included EBITDA solely to provide investors with added insight into the Company's potential financial performance. Readers are cautioned that such non-IFRS measures may not be appropriate for any other purpose. Non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.