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Oil and Gas Outlook 2022: Uncertainty and Risk to Drive Prices

The oil and gas sector recovered much of 2020’s losses in 2021 as concern over the energy crisis and its effects drove WTI crude oil prices to a seven year high of US$83.76 per barrel (bbl) in October.Natural gas also rallied to highs unseen since 2014…



The oil and gas sector recovered much of 2020's losses in 2021 as concern over the energy crisis and its effects drove WTI crude oil prices to a seven year high of US$83.76 per barrel (bbl) in October.

Natural gas also rallied to highs unseen since 2014 over the first 10 months of 2021, adding 142 percent to its value from January to October. Broad volatility brought on by production challenges supported the oil and gas spaces for the majority of the year. However, consolidation late in the fourth quarter weighed on both markets, eroding some of the gains made in the 10 previous months.

By the end of the year, WTI crude had climbed 61 percent from its 2021 start, while Brent crude was up 43 percent and natural gas added 40 percent.

Oil and gas trends 2021: Supply and demand imbalance

After 2020 saw demand briefly decline by as much as 30 million bbl/day and prices sink to a 21 year low, 2021 proved to be about recovery as prices rebounded.

This was most evident late in Q3 and early Q4 when prices touched the aforementioned 7 year highs.

As Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, explained, the recovery was led by an effort to recoup demand but was also largely facilitated by a mounting supply problem.

“I believe we're in a multi-year bull market for oil,” Nuttall told INN. “ What we saw throughout 2021 continuing into 2022 is the lack of significant production growth from all over the world.”

Watch Nuttall delve into factors impacting the oil sector.

Nuttall added that the period of “hyper-growth” that was exhibited in the US shale sector over the last eight years is ending and additional OPEC production in 2021 was little to non-existent, signaling a “massively bullish event.”

Additionally, as noted by the World Bank’s Commodity Markets Outlook, Hurricane Ida and OPEC’s decision to keep production at current levels added tailwinds to the sector.

“Some oil-importing countries had called for larger increases, as the group continues to hold significant amounts of production capacity off the market,” the report reads. “Oil prices have also been supported by higher natural gas prices as oil is becoming more competitive as a substitute in heating and electricity generation.”

For Dmitry Marinchenko, senior director at Fitch Ratings, this measured approach gave prices the opportunity to grow.

2021 WTI Crude oil performance

“OPEC+‘s coordinated actions and improved demand have resulted in oil prices recovering from around US$50/bbl early in the year to US$70+/bbl,” he said. “The average price of around US$70/bbl exceeded expectations of most market participants.”

The senior director also referenced the 2021 natural gas market as “a perfect storm” of activity that sent prices 142 percent higher between January and October, from US$2.53 MMBtu to US$6.13 MMBtu.

2021 natural gas performance

“Everything went wrong — from cold 2019/20 winter and warm summer in the Northern Hemisphere, to increased demand in China and reduced supplies from Russia,” Marinchenko said. “As a result, prices soared to unprecedented levels and remain unsustainably high.”

Oil and gas outlook 2022: Geopolitics infusing risk into energy sector

2022 could be a pivotal year in the natural gas sector as Russia increases its military presence near Ukraine, provoking an international response. Russia is one of the largest producers of natural gas, supplying it and petroleum products to Europe and the US.

As the World Bank report notes, global natural gas inventories are currently very low, especially in Europe, in comparison to other years, making the geopolitical tensions more impactful.

“Severe sanctions against Russia are unlikely given its significant share of the global oil and European natural gas market, but cannot be completely ruled out if political tensions intensify,” Marinchenko said.

Even if global tensions are cooled, bureaucratic red tape could further delay the commissioning of Nord Stream 2, a 1,230 kilometer pipeline that will double the capacity of the current undersea route (Nord Stream) from Russia’s gas fields into Europe.

“Continued delays with Nord Stream 2 could prevent Russia from meaningfully increasing exports to Europe — even though Russia could technically increase deliveries through the Ukrainian route — and result in natural gas prices in Europe remaining high,” Marinchenko added.

Nord Stream 2 could also be an area of contention amid the rising tensions between Russia and the US. The potential outcomes were outlined in S&P Global’s January 25 market update.

“Because Europe depends on Russia for the majority of its crude oil, natural gas, and solid fossil fuel supplies, the Russia-Ukraine tensions have stirred anxiety within Europe over potential outcomes — if financial sanctions are imposed on Russia or Nord Stream 2 or if Russia slashes Europe’s energy supplies or cuts capacity through Ukraine,” the report highlighted. “Some market participants see Germany’s strategic energy partnership with Russia over the Nord Stream 2 pipeline as a conflict of interest in diplomatic dealings involving Ukraine."

Oil and gas outlook 2022: Prices to trend higher

According to the International Energy Agency (IEA), global oil stores were reduced by 600 million barrels in 2021, a 200 million discrepancy from the forecasted tally. The 200-million-barrel difference could lead to a tighter market in 2022.

For Nuttall, this only strengthens his belief in the current market.

“The bullish thesis revolves around demand growth for at least the next 10-15 years,” he said. “It means the world is hurtling into an oil supply crisis and the oil price will have to go high enough in order to kill discretionary demand, and so the question you've probably asked is well ‘what oil price is that?’ … It would be an all-time high oil price … about US$140- US$150 per barrel if not higher.”

Veteran investor and speculator Rick Rule also sees investment potential in the 2022 oil and gas market.

“I think that yield oriented investors, not speculators, but yield oriented investors will be drawn increasingly to the oil and gas business,” Rule told INN in late December.

Listen to Rick Rule discuss where the resource market may go in 2022.

“The circumstances are in place that I think continue to guarantee higher prices for oil because the oil industry as a whole is deferring sustaining capital and new project investments, which continues to impair their ability to produce oil, which reduces supply,” Rule said.

Oil could also see an uptick in demand as a it becomes increasingly used as substitution for natural gas in heating and electricity generation.

The World Bank expects oil prices to average US$74 per barrel in 2022, as demand continues to recover and reach pre-pandemic levels during H2.

On the other hand, the World Bank anticipates natural gas prices to steadily decline in 2022 into 2023. The decrease will likely be the result of shrinking demand growth outside of Asia mixed with production and export increases.

“More broadly, the events of (2021) have highlighted how changing weather patterns due to climate change are a growing risk to energy markets, affecting both demand and supply,’ the October report noted. “From an energy transition perspective, concerns about the intermittent nature of renewable energy highlight the need for reliable baseload and backup electricity generation.”

Marinchenko and Fitch Ratings also see oil prices steadying in the US$70 range.

“We expect average oil prices remaining broadly stable year-on-year at around US$70/bbl,” the senior director said. “This is based on our expectation that OPEC+ will continue to actively manage supply to avoid large surpluses or deficits in the market.”

In terms of gas, prices are anticipated to come down significantly.

“In Europe, we assume average natural gas prices to subside from around US$16 per (one thousand cubic feet) mcf to US$8/mcf,” Marinchenko added. “However, this assumes that Russia will continue to operate as the 'last resort' marginal supplier (the role it played in the past).”

He also pointed out that geopolitical tensions and delays with Nord Stream 2 could result in natural gas prices remaining elevated for longer.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference

NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference
PR Newswire
RADNOR, Pa., May 19, 2022

Company to Present Corporate Update During Investor Webcast, May 24, 2022, at 7:00am ET
RADNOR, Pa., May 19, …



NRx Pharmaceuticals Leaders to Present at the H.C. Wainwright & Co. Global Investment Conference

PR Newswire

Company to Present Corporate Update During Investor Webcast, May 24, 2022, at 7:00am ET

RADNOR, Pa., May 19, 2022 /PRNewswire/ -- NRx Pharmaceuticals, Inc. (Nasdaq: NRXP), a clinical-stage biopharmaceutical company, today announced its interim Chief Executive Officer, Robert Besthof, and other executive leaders will be presenting a virtual update to the company's business via webcast at the H.C. Wainwright & Co. Global Investment Conference.

Webcast Presentation Details: 

Event:  H.C. Wainwright Global Investment Conference (Hybrid Conference)
Date: Tuesday, May 24, 2022
Time: 7:00 a.m. Eastern Time
Link to register for the NRx Pharmaceuticals' Presentation: CLICK HERE

(A replay will be available on the NRx Pharmaceuticals website for thirty (30) days following the presentation at

About NRx Pharmaceuticals

NRx Pharmaceuticals, Inc. (Nasdaq: NRXP) ("NRx Pharmaceuticals" or the "Company") draws upon decades of collective, scientific, and drug-development experience to bring improved health to patients. The U.S. Food and Drug Administration ("FDA") has granted Breakthrough Therapy designation, a Special Protocol Agreement, and a Biomarker Letter of Support for NRX-101, an investigational medicine for the treatment of severe bipolar depression in patients with acute suicidal ideation and behavior after initial stabilization with ketamine or other effective therapy. In addition, ZYESAMI® (aviptadil), for patients with COVID-19, has been granted Fast Track designation by the FDA and is in a Phase III trial for Critical COVID-19 patients which is sponsored and managed by the U.S. National Institutes of Health.

NRx Pharmaceuticals is led by executives who have held senior leadership roles at Lilly, Pfizer, and Novartis as well as major investment banking institutions.

Cautionary Note Regarding Forward-Looking Statements

This announcement of NRx Pharmaceuticals, Inc. includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995, which may include, but are not limited to, statements regarding our financial outlook, product development, business prospects, and market and industry trends and conditions, as well as the Company's strategies, plans, objectives, and goals. These forward-looking statements are based on current beliefs, expectations, estimates, forecasts, and projections of, as well as assumptions made by, and information currently available to, the Company's management.  

The Company assumes no obligation to revise any forward-looking statement, whether as a result of new information, future events or otherwise.  Accordingly, you should not place reliance on any forward-looking statement, and all forward-looking statements are herein qualified by reference to the cautionary statements set forth above.

Molly Cogan
Sr. Director, Global Communications

Tim McCarthy
Investor Relations


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JPY forecast amid the Bank of Japan keeping the monetary policy easy

The rapid depreciation of the Japanese yen (JPY) in the last couple of years led to one of the most impressive moves seen in the FX market in recent history….



The rapid depreciation of the Japanese yen (JPY) in the last couple of years led to one of the most impressive moves seen in the FX market in recent history. The yen simply melted, losing value against all its peers – not only against the US dollar.
Speaking of the US dollar, the yen dropped to over 131 recently before gaining some ground in the last few days. How will the yen perform for the rest of the year, and is the Bank of Japan right in keeping the monetary policy easy?

Bank of Japan still sees inflation as transitory

The main reason for the JPY’s move lower is the Bank of Japan’s policy. The central bank sees inflation as transitory, and, for this reason, it keeps the monetary policy easy.

It keeps buying government bonds, despite PPI or Producers Price Index (i.e., inflation on the producers’ side) rising at a four-decade high.

But so did the Fed, before dropping the transitory word when talking about inflation. If the PPI transfers to consumers, as it should, then the Bank of Japan would have to reverse its policy.

Truth be said, inflation in Japan is below 2% for decades, hurting the Bank of Japan’s credibility. It might have dramatic implications on the FX dashboard if it rises considerably above the target.

Only that the FX market is a leading one. Traders speculate and position themselves well before a central bank acts.

So did we see the lowest point in the JPY or not?

AUD/JPY daily chart points to a possible reversal

All JPY pairs’ charts look more or less like the AUD/JPY daily chart below. It shows that following the COVID-19 pandemic dip in 2020, the market rallied relentlessly.

But the recent breakout in 2022 following the Bank of Japan’s yield curve control comments is only the last leg of an otherwise super long trend. In other words, the yen was sold well ahead of the Bank of Japan’s comments. It followed the US stock market higher.

Now that the US stock market is coming down (i.e., Nasdaq 100 dropped -28% YTD), the JPY pairs may follow. The AUD/JPY chart above shows a possible head and shoulders pattern at the top which might just signal the top of a bigger head and shoulders pattern.

In other words, should the recent highs hold, a move back to 80 should not be discounted, especially if the US stock markets keep falling.

The post JPY forecast amid the Bank of Japan keeping the monetary policy easy appeared first on Invezz.

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Canada NewsWire
LONDON, ON, May 19, 2022

Indiva Launches New Consumer Brand Indiva Life and Remains the National Market Share Leader in the Edibles Category
LONDON, ON, May 19, 2022 /CNW/ – Indiva Limited (…




Canada NewsWire

Indiva Launches New Consumer Brand Indiva Life and Remains the National Market Share Leader in the Edibles Category

LONDON, ON, May 19, 2022 /CNW/ - Indiva Limited (the "Company" or "Indiva") (TSXV: NDVA) (OTCQX: NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the first fiscal quarter ended March 31, 2022. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). For a more comprehensive overview of the corporate and financial highlights presented in this news release, please refer to Indiva's Management's Discussion and Analysis of Financial Condition and Results of Operations for the Three Months Ended March 31, 2022, and the Company's Consolidated Financial Statements for the Three Months Ended March 31, 2022 and 2021, which are filed on SEDAR and available on the Company's website,

"We are pleased to report very strong year-over-year revenue growth in the first quarter of 2022, and continued gross margin improvement compared to fiscal 2021. According to data from Hifyre Inc., Indiva continues as the dominant national market share leader in edibles," said Niel Marotta, President and Chief Executive Officer of Indiva. "Looking forward, we have many new products and brands to introduce in 2022, as we leverage our distribution across all 13 provinces and territories in Canada. Specifically, Indiva will continue to delight its customers and clients and drive margin-accretive top line growth in 2022 with the introduction of Grön Pearl gummies and Grön Pips candy-coated chocolates, Dime Industries Vapes, as well as new edible and extracts products to be listed under our new in-house consumer brand 'Indiva Life'. We will launch new edible and extract products in Q2 and in the second half of 2022 under the Indiva Life brand, which will come to market as a result of Indiva's own in-house innovation."

Quarterly Performance
  • Gross revenue in Q1 2022 at $9.7 million, representing a 6.6% sequential decrease from Q4 2021, and a 41.2% increase year-over-year from Q1 2021.

  • Net revenue in Q1 2022 was $8.95 million, representing a 5.4% sequential decrease from Q4 2021, and a 43.8% increase year-over-year from Q1 2021, driven primarily by higher sales of category leading edibles including Wana Sour Gummies and Bhang Chocolate, offset by seasonal impacts and lower non-edible revenue.

  • Net revenue from edible products grew to $8.5 million, up 3% from $8.2 million in Q4 2021 and up 54% from $5.5 million in the prior year period. Edible product sales represent 95% of net revenue in Q1 2022.

  • Gross profit before fair value adjustments, impairments and one-time items improved year-over-year, but declined sequentially, to $2.7 million, or 30.0% of net revenue, versus 31.7% in Q4 2021 and 19.0% in Q1 2021. The decline in gross margin percentage sequentially was due to additional labour required in processing, higher shipping costs, lower overhead absorption on goods sold in the quarter, and some returns of product, which are more one-time in nature, as it related to past contract manufacturing agreements. The Company expects margins to improve in the second half of 2022 as new automation for production and packaging comes online.

  • In Q1 2022, Indiva sold products containing 54.3 million milligrams of distillate, the active ingredient in edible products, which represents a 10% decrease when compared to the 60.4 million milligrams in product sold in Q4 2021, and a 84% increase compared to 29.4 million milligrams sold in Q1 2021. The sequential decline was a function of lower sales due to seasonality and mix shift away from multi-pack SKUs.

  • Impairment charges in the quarter totaled $0.85 million. This impairment includes a write off of aged finished goods and bulk cannabis as well as certain packaging for contract manufacturing arrangements no longer in place, offset by a recovery on oil-based products which continue to sell. The Company will continue to work to monetize any impaired inventory which remains saleable.

  • Operating expenses in the quarter decreased 14% sequentially, representing 39.2% of net revenue, versus 43.0% in Q4 2021 and 35.9% in Q1 2021. Operating expenses declined due to lower general and administrative costs, including lower professional fees and lower research and development costs, offset by higher marketing costs and sales commissions.

  • Adjusted EBITDA improved sequentially in Q1 2022 to a loss of $0.33 million, versus a loss of $0.49 million in Q4 2021, due to lower sales and margins offset by lower operating expenses. Q1 2022 improved versus a loss of $0.51 million in Q1 2021, driven by higher sales and improved margins. See "Non-IFRS Measures", below.

  • Comprehensive net loss of $3.0 million included one-time expenses and non-cash charges for impairment of inventory and property, plant and equipment totaling $1.1 million. Excluding these charges, comprehensive loss declined to $2.0 million versus an adjusted loss of $2.3 million in Q4 2021 and $1.5 million in Q1 2021.
Operational Highlights for the First Quarter 2022
  • Indiva achieved national distribution, across all 10 provinces and 3 territories, adding a supply agreement with Nunavut in Q1 2022.

  • The OCS accepted four Grön Pearl gummie listings, with initial deliveries expected in July 2022.

  • Two new SKUs were launched under the Jewels brand. The cannabis tarts, available in Strawberry and Raspberry 1:1 flavours, are perfect for micro dosing at 1 mg per tablet.

  • Indiva launched Bhang THC Toffee and Salt Milk Chocolate in BC.

  • Wana Quick Midnight Berry launched in Ontario, BC and Alberta, and experienced strong sell-in, quickly becoming one of the most popular CBN products in the country. Indiva also introduced two additional gummie SKUs nationally, including under the Wana Quick brand, Lemon Cream and Island Punch.

  • Indiva launched a new craft cultivar called Platinum Jelly by Stinky Greens, under the Artisan Batch brand.
Events Subsequent to Quarter End
  • Dime Industries ("Dime"): Indiva signed an exclusive licensing and manufacturing agreement with Dime. The agreement has a five year term which automatically renews for three additional five year terms. Indiva intends to launch Dime's proprietary and innovative vape products, including disposable vapes, 510-thread carts and custom batteries beginning in Q3 2022, marking Indiva's first entrance into the vape category.

  • Awards: Artisan Batch was awarded Best in Grow from Cannabis NB for best Indica flower, namely Sour Glue, produced by Purplefarm Genetics.

  • Indiva launched additional SKUs subsequent to quarter end including Wana Passion Fruit and Artisan Batch Mimosa Live Rosin.

  • Indiva introduced its new consumer brand Indiva Life at the 2022 Lift&Co conference. The initial cannabis products to be launched under the Indiva Life brand will include edibles, extracts and pre-rolls, all of which have received preliminary acceptance from provincial wholesalers.

  • Indiva continues to receive strong interest in new product and SKU offerings from provincial wholesalers. In the most recent OCS product call, Indiva submitted 42 new SKUs for listing including Grön Pearl Gummies and Pips candy-coated chocolates, Dime Vapes, Indiva Life edibles, extracts and pre-rolls, as well as new Artisan Batch flower and pre-rolls.
Market Share
  • Sell through data from Hifyre Inc. for the first quarter of 2022 shows strong sell-through of Indiva edible products. With 34.2% share of sales, Indiva continues to lead in the #1 market share position in the edibles category:
    • Ontario: #1 with 33.1% market share.

    • Alberta: #1 with 32.8% market share.

    • British Columbia: #1 with 41.5% market share.

    • Saskatchewan: #1 with 21.5% market share.

    • Manitoba: #1 with 37.1% market share.

    • Wana™ Sour Gummies led the edibles category, with 28.0% category share, and 37.6% sub-category share, and Bhang® continued to lead the chocolate category with 34.8% sub-category share.

    • Product Ranking in Q1 2022 showed the top 6 of the Top 10 edible SKUs are from Indiva, led by Wana Pomegranate Blueberry Acai.

    • Based on Hifyre Inc. data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category declined very slightly in Q1 2022 to $51.2 million in retail sales from a record $51.8 million in Q4 2021.
  • The Company expects Q2 2022 net revenue to be higher sequentially, driven by new product introduction and continued strength in our core products. In the second half of the year, the Company expects robust sequential and year-over-year growth, due to the introduction of several new products and SKUs including, Pearls gummies, Pips candy-coated chocolates, Dime Industries vape products, as well as new Indiva Life branded products, resulting from in-house innovation, namely Double-Stuffed Vanilla Cookies and Double Stuffed Fudge Cookies, as well as Wild Cherry THC Lozenges and Lemon THC Lozenges.

  • Margins are expected to benefit in the second half of 2022 due to the implementation of automation in the production and packaging of edible products. The Company expects to deliver on its commitments for existing or new listings of products, despite some delays in receiving equipment due to global COVID-19-related lockdowns.

  • Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand, with special focus on high THC potency, robust terpene content, premium buds and fresh harvest dates.

Three months ended

March 31

(in thousands of $, except gross margin %

and per share figures)



Gross revenue



Net revenue



Gross margin before fair value adjustments

and impairments



Gross margin before fair value adjustment

and impairments (%)



Loss and comprehensive loss



Adjusted EBITDA[1]



Earnings per share – basic and diluted



Comprehensive earnings per share – basic

and diluted



See "Non-IFRS Measures", below.

Operating Expenses

Three months ended

March 31

(in thousands of $)



General and administrative



Marketing and sales



Research and development



Share-based compensation



Depreciation of property, plant

 and equipment



Amortization of intangible




Expected credit loss



Total operating expenses



Separately, the Company announces that the board of directors of the Company has approved the grant of an aggregate of 222,222 restricted share units ("RSUs") to a certain consultant pursuant to its amended and restated omnibus incentive plan (the "Plan").

All of the RSUs will vest on the one year anniversary of the date of grant. Each vested RSU will entitle the holder thereof to receive a cash payment equal to the closing price of the common shares of the Company on the last trading date prior to the vesting date, or at the discretion of the board of directors of the Company, one common share of the Company or any combination of cash and common shares.


Government and private entities are still assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced health and safety protocols in place to protect its employees. The Company continues to assess the customer, supply chain, and staffing implications of COVID-19 and is committed to making continuous adjustments to minimize disruption and impact. Indiva will remain proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to protect Canadians.

CONFERENCE CALL - Thursday, May 19, 2022 at 8:30 a.m. (EST):

The Company will host a conference call to discuss its results on Thursday, May 19, 2022 at 8:30 a.m. (EST). Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID number is 53550245.

A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 550245#. The recording will remain available until Sunday, June 19, 2022.


Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang® Chocolate, Wana Sour Gummies, Slow Ride Bakery Cookies, Jewels Chewable Tablets, Ruby® Cannabis Sugar, Grön edibles, Dime IndustriesTM vape products, as well as capsules, edibles, extracts, pre-rolls and premium flower under the INDIVA, Indiva Life and Artisan Batch brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this news release contains forward-looking information relating to, among other things, (i) the Company's outlook for and expected operating margins and future financial results, (ii) the projected growth of its business and operations (including existing and new segments thereof), and the future business activities of, and developments related to, the Company within such segments after the date of this news release, including the anticipated introduction of new product offerings (iii) the Company's ability to capture and/or maintain its market share in any jurisdiction, and (iv) the Company's ability to deliver on its commitments for existing or new listings of products. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company, and include, without limitation, assumptions about the Company's future business objectives, goals, and capabilities, the cannabis market, the regulatory framework applicable to the Company and its operations, and the Company's financial resources. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks inherent in the cannabis industry, (iv) risks associated with economic conditions, (v) dependence on management, (vi) public opinion and perception of the cannabis industry, (vii) risks related to contracts with third-party service providers, (vii) risks related to the enforceability of contracts, (viii) reliance on the expertise and judgment of senior management of the Company, and ability to retain such senior management, (ix) risks related to proprietary intellectual property and potential infringement by third-parties, * risks relating to the management of growth and/or increasing competition in the industry, (xi) risks associated to cannabis products manufactured for human consumption, including potential product recalls, (xii) risks related to the economy generally, and (xiii) risk of litigation.

The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake to, update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's prospective results of operations, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. FOFI contained in this news release was approved by management as of the date of this news release and was provided for the purpose of providing further information about the Company's future business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures. These 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. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

The non-IFRS measure used in this news release includes "Adjusted EBITDA". The Company calculates Adjusted EBITDA as a sum of net revenue, other income, cost of inventory sold, production salaries and wages, production supplies and expense, general and administrative expense, and sales and marketing expense, as determined by management. Adjusted license fee eliminates 50% of the fee which is equivalent to the Company's share of the joint venture company to which the license fee is paid. Adjusted EBITDA is provided to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. Management believes that Adjusted EBITDA provides useful information to investors as it is an important indicator of an issuer's ability to generate liquidity through cash flow from operating activities and equity accounted investees. Adjusted EBITDA is also used by investors and analysts for assessing financial performance and for the purpose of valuing an issuer, including calculating financial and leverage ratios. The most directly comparable financial measure that is disclosed in the financial statements of the Company to which the Non-IFRS measure relates is income (loss) from operations.

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