Q1 Gross Merchandise Sales1 ("GMS") of $7.65M compared to $7.61M in Q1 2023 Q1 Revenue of $5.0M compared to $5.3M in Q1 2023 Q1 Gross Profit increased to $2.1M compared to $2.0M in Q1 2023 Q1 Gross Margin improved to 43% compared to 38% in Q1 2023 Q1 Adjusted EBITDA1 improved to $(99K) compared to $(526K) in Q1 2023 Net Income from Continuing Operations improved to $9K compared to Net Loss of  $(2.4M) in Q1 2023 TORONTO, May 28, 2024 /CNW/ - EMERGE Commerce Ltd. (TSXV:ECOM) ("EMERGE" or the "Company"), a premium e-commerce brand portfolio, today announced results for its three months ended March 31, 2024. Copies of the interim financial statements and MD&A are available on the Company's profile on SEDAR at www.sedar.com. This marks EMERGE's first financial report which classifies WholesalePet ("WSP") as discontinued operations, with prior period results also restated to reflect the reclassification. EMERGE completed its sale of WSP in January 2024. Ghassan Halazon, Founder and CEO, EMERGE commented, "Q1 2024 was a crucial setup quarter for our more focused business. We are pleased to report that GMS, the actual sales volume being transacted across our sites, is trending upwards, forming the basis for our "return to growth" plan in 2024, a top priority. Operationally, the team's efforts in Q1 translated into year-over-year gains across gross profit, gross margin, Adjusted EBITDA, and Net Income. truLOCAL, our largest brand by revenue, saw strong net customer inflows, another key metric that drives future, deferred, revenue growth. The team is also driving visible YoY growth in our golf division, a discount-centric business, as more golf vendors seek out our marketplace services with more aggressive offers to entice customers. On the other hand, Carnivore Club, our smallest brand, is a business we have actively been optimizing for profitability, while shrinking "loss-making" revenue. Excluding Carnivore Club, our Q1 revenue was in line with Q1 2023. All in all, we are making terrific progress from topline to bottom line, notably, including positive Net Income in Q1." Q1 2024 Financial Highlights Q1 GMS of $7.65M compared to $7.61M in Q1 2023 Q1 Revenue of $5.0M compared to $5.3M in Q1 2023. Excluding Carnivore Club, a brand that is actively eliminating loss-making revenue, EMERGE revenue would be in line with Q1 2023 Q1 Gross Profit increased to $2.1M compared to $2.0M in Q1 2023 Q1 Gross Margin improved to 43% compared to 38% in Q1 2023 Q1 Adjusted EBITDA improved to $(99K) compared to $(526K) in Q1 2023 Net Income improved to $486K compared to Net Loss of $(2.1M), largely driven by the sale of WholesalePet ("WSP") Net Income from Continuing Operations improved to positive $9K compared to a Net Loss of $(2.4M) Cash on hand at March 31, 2024 was $2.6 million Cost Reductions Following the sale of various non-core businesses over the last year, EMERGE is executing additional cost savings largely in relation to operating a more focused set of brands. "We have taken measures to reduce our overhead expenses given our more streamlined operations that are now exclusively centered on our grocery and golf verticals. These cost reductions were partly reflected in our much improved profitability in Q1, with additional savings being actioned in Q2 as well," continued Halazon. Brand-Level Commentary truLOCAL, our premium meat subscription service, and EMERGE's largest business by revenue, continues to see strong net customer inflows, a leading indicator of future (deferred) revenue, increased Average Order Value ("AOV"), and reduced overhead expenses. The direct-to-consumer ("D2C") subscription business is showing encouraging signs year-to-date, with 'new initiative' revenue lines in the works as well to accelerate organic growth. The golf division, which includes UnderPar and JustGolfStuff, continue to drive improved topline, margins and more efficient marketing spend. Carnivore Club, EMERGE's smallest business, is being optimized for profitability, which includes the elimination of loss-making revenue. Excluding Carnivore Club, EMERGE's Q1 2024 revenue would have been approximately in line with Q1 2023. Q1 2024 Business Highlights  Sale of WSP In January 2024, EMERGE completed the sale of WSP to Tiny Fund I, LP, for aggregate gross cash consideration of US$9.25M subject to certain closing adjustments and obligations. EMERGE now retains 4 brands across 2 main verticals, Grocery and Golf, in Canada and the U.S., namely truLOCAL, Carnivore Club, UnderPar, and JustGolfStuff. $10M Debt Paydown and Extended Term EMERGE utilized $10M from the WSP transaction proceeds to paydown its senior credit facility with its existing lender, the principal balance of which has been reduced to $5.85M, from $15.85M prior to the completion of the transaction, and $25M originally. On January 31, 2024, the Company entered into a second amended and restated credit agreement with its existing lender, providing a term of up to 24 months, which is comprised of an initial term of 18-months, plus an additional 6-month extension option (the "Extension"), which may be exercised upon mutual agreement between the Company and the lender. Inclusive of the Extension, the Amended Facility is expected to mature on January 31, 2026. Notable Events Subsequent to March 31, 2024 Convertible Note Amendment Resulting in $1.39M Debt Reduction On April 29, 2024, 100% of the holders of EMERGE's 10% senior unsecured convertible debentures represented in person or by proxy at a meeting of debentureholders approved certain amendments to the terms of such debentures, including the creation of a redemption right and the extension of the maturity date of the debentures from November 2025 to November 2026. On the same date, EMERGE announced the redemption of $1,391,000 of principal amount of the debentures. On May 6, 2024, EMERGE completed this redemption by the issuance of 10,303,703 common shares in settlement of ...