Annual revenue for fiscal 2023 increases to $88.3 million Gross profit for fiscal 2023 of $29.5 million, a $6.8 million, or 30%, increase from $22.7 million for fiscal 20221Adjusted EBITDA2 for fiscal 2023 increases to $5.5 million TORONTO, April 29, 2024 (GLOBE NEWSWIRE) -- Red White & Bloom Brands Inc. (CSE:RWB) ("RWB" or the "Company") is pleased to report it has filed its Consolidated Audited Financial Statements ("the Financial Statements"), Management's Discussion and Analysis ("MD&A"), and associated certifications. The Company will hold its Annual General Meeting ("AGM") on Friday, June 14th, 2024. Further communication will follow for the benefit of shareholders including details on how to access the AGM both in-person and virtually. As of the date of this release, the Company expects to complete its requisite filings and disclosures for the first quarter of 2024 by the prescribed date of May 30, 2024. Management Commentary Colby De Zen, President, and Director, stated, "RWB continued to effect value-added transformations of its business during fiscal 2023. We focused on higher margin revenue opportunities and sunsetting of low margin products, as can be seen in our results, which has led to a 30% increase in gross margin with revenue only increasing marginally over the same period. Moving into fiscal 2024, the Company has targeted several near-term priorities, including a fulsome restructuring of its current financing arrangements, resourcing its key business segments, both in Canada and across incumbent and prospective US states, providing a path for our company and its valued team members to achieve profitable growth and sustainable liquidity. In addition, in fiscal 2024, post our fiscal 2023 close, RWB successfully completed the acquisition of the former Aleafia group of companies, providing RWB with a North American and international cannabis footprint in advance of potential US federal legalization. The Company has also positioned itself to capitalize on market opportunities in jurisdictions, such as Florida and its emerging legalization movement, where our prior strategic investments will provide the ability to establish a stronghold. RWB management remains focused on its commitment to further streamline operations, expand and leverage its brand equity through its asset light licensing arrangements, rationalize discretionary expenditures, and focus on procurement initiatives that will drive profitability." Recent highlights for 2023-Q4 and subsequent to 2023-YE On October 12, 2023, RWB was selected as the successful bidder under the sale and investment solicitation process approved by the Ontario Superior Court of Justice (Commercial List) (the "Court") in connection with Aleafia Health Inc. ("Aleafia Health") and certain of its subsidiaries (together with Aleafia Health, the "Aleafia Group") under the Companies' Creditors Arrangement Act (the "CCAA"). On October 31, 2023, RWB was granted by the Ontario Superior Court of Justice (the "Court") an approval and reverse vesting order in respect of the previously announced sale transactions (the "Approval and Vesting Order"). The Approval and Vesting Order was the sole authorization required by the Aleafia Group to implement the transactions provided for under the previously announced stalking horse asset purchase and share subscription agreement, as amended, and restated on October 24, 2023 (the "Amended Stalking Horse Agreement") among RWB, Aleafia Health and certain of Aleafia Health's subsidiaries (collectively, the "Aleafia Purchased Entities"). The Court also granted an ancillary relief order approving, among other things, (i) amendments to the debtor-in-possession ("DIP") term sheet to increase the DIP financing available to the Aleafia Group from $6.6 million to $8 million; and (ii) an extension to the stay period in the Aleafia Group's CCAA proceedings to November 30, 2023, in order to, among other things, permit the parties to complete the transactions contemplated under the Amended Stalking Horse Agreement. On November 9, 2023, the Company announced its entry into the rapidly growing Ohio cannabis market through the execution of a licensing arrangement with a first mover, vertically integrated Ohio distributor. This strategic partnership allows RWB to leverage the distributor's retail network to introduce its renowned Platinum Vape cartridges and disposable vapes, available in various formats, across more than ninety licensed retail locations in the state. On January 15, 2024, the Company announced that, in connection with the Aleafia Group's CCAA proceedings, the parties successfully closed the previously announced sale transaction on January 12, 2024 (the "Transaction"). Pursuant to the Transaction, RWB (PV) Canada Inc. (the "Purchaser"), a wholly-subsidiary of RWB, acquired the intellectual property assets of Aleafia Health and subscribed for shares in the capital of each of Emblem Cannabis Corporation ("ECC"), Canabo Medical Corporation ("Canabo") and Aleafia Retail Inc. ("Retail" and collectively with ECC and Canabo, the "Companies"). As a result of the Transaction and Approval and Vesting Order, the Purchaser became the sole shareholder of the Aleafia Purchased Entities. Additional details of the consideration for the Transaction can be found in the Company's 2023 financial statements. 2023 Fourth Quarter ("2023-Q4") Consolidated Results v. Fourth Quarter 2022 ("2022-Q4") Revenues were $19.9 million for 2023-Q4, a $4.5 million increase from 2022-Q4 revenues of $15.4 million. Gross profit, before fair value adjustments, was $7.4 million for 2023-Q4, a $6.1 million increase from 2022-Q4 gross profit before fair value adjustments of $1.3 million primarily related to improved margins in the Company's Distribution segment and the activation of the Company's Licensing segment in fiscal 2023. Gross profit, after fair value adjustments, was $8.7 million for 2023-Q4, a $2.3 million increase from 2022-Q4 gross profit after fair value adjustments of $6.4 million. Operating expenses were $11.0 million for 2023-Q4, an increase of $3.6 million compared to 2022-Q4 operating expenses of $7.4 million. The increase was substantially related to a reconciliation of year-to-date accruals, as well as non-cash expenses associated with the Company's expected credit loss provisions in compliance with IFRS. Losses from operations before other expenses were $2.3 million for 2023-Q4, a $1.5 million increase from 2022-Q4 losses from operations before other expenses of $0.9 million Other expenses were $91.9 million, inclusive of non-cash impairments of $85.2 million, for 2023-Q4, a decrease of $121.6 million compared to 2022-Q4 other expenses of $213.5 million, inclusive of non-cash impairments of $214.5 million. Other expenses also included $0.6 million of finance expenses (2022-Q4 - $nil) associated with the funding of the Aleafia group of companies during its CCAA proceedings and prior to its acquisition on January 12, 2024. Adjusted EBITDA was $1.7 million for 2023-Q4, an increase of $4.9 million compared to 2022-Q4 Adjusted EBITDA of negative $3.2 million. Fiscal Year 2023 ("2023-YTD") Consolidated Results v. Fiscal 2022 ("2022-YTD") Revenues for 2023-YTD were $88.3 million, a $0.6 million increase from 2022-YTD revenues of $87.7 million. Gross profit, before fair value adjustments for 2023-YTD, was $31.2 million, a $8.7 million increase from 2022-YTD gross profit before fair value adjustments of $22.5 million primarily related to improved margins in the Company's Distribution segment and the activation of the Company's Licensing segment in fiscal 2023. Gross profit, after fair value adjustments, was $29.5 million for 2023-YTD, a $6.8 million increase from 2022-YTD gross profit after fair value adjustments of $22.7 million. Operating expenses were $37.8 million for 2023-YTD, an increase of $5.5 million compared to 2022-YTD operating expenses of $32.3 million. The increase was substantially related to a reconciliation of year-to-date accruals, as well as non-cash expenses associated with the Company's expected credit loss provisions in compliance with IFRS. Losses from operations before other expenses were $8.3 million for 2023-YTD, a $1.3 million decrease from 2022-YTD losses from operations before other expenses of $9.6 million. Other expenses were $108.2 million, inclusive of non-cash impairments of $85.9 million, for 2023-YTD, a decrease of $121.5 million compared to 2022-YTD other expenses of $229.7 million, inclusive of non-cash impairments of $214.5 million. Other expenses for 2023-YTD also included $1.2 million of finance expenses (2022-YTD - $nil) associated with debt service tied to the funding of the Aleafia group of companies during its CCAA proceedings and prior to its acquisition on January 12, 2024. Adjusted EBITDA was $5.5 million for 2023-YTD, an increase of $7.2 million compared to 2022-YTD negative adjusted EBITDA of $1.7 million. The following is a condensed summary of the Company's results from operations for 2023-YTD, and 2022-YTD. (in thousands of Canadian dollars) 2023-Q4 2022-Q4 restated Variance 2023-YTD 2022-YTDrestated Variance   $ $ $ $ $ $ Revenue 19,864   15,376   4,489   88,333   87,715   618   Gross Profit after fair market value adjustments 8,684   6,477   2,206   29,485   22,670   6,815   Gross profit (%) 44 % 42 %   33 % 26 %   (i)General and administration 7,092   7,591   (500 ) 28,022   21,855   6,168   Marketing expenses 452   617   (165 ) 1,783   3,012   (1,229 ) Share-based compensation 144   (721 ) 866   752   478   274   Depreciation and amortization 879   98   781   3,784   6,061   (2,277 ) (ii)Bad debt expense 2,463   (226 ) 2,689   3,419   879   2,539   Total operating expenses 11,030   7,359   3,671   37,759   32,284