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May 31, 2022, 7:01 a.m. EDT

GABY Reports First Quarter Results for 2022

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  • With the April 1st, 2021 acquisition of Mankind, a long standing California retail cannabis dispensary located in San Diego, GABY reported operating improvements as follows:

  • Closed Santa Rosa based Sonoma Pacific Distribution Inc. ("Sonoma Pac" or "SPD") effective August 31, 2021, and in Q1-2022 settled SPD's indebtedness to the California Department of Tax and Fee Administration ("CDTFA") and dissolved SPD eliminating the remaining outstanding payables of $3 million.

  • In 2021 GABY cut costs by US $3.0 million which have started to materialize in 2022.

  • In April 2022, Gaby launched a new high end flower brand, Dank SpaceTM, which has become the number one selling flower brand in the Mankind dispensary within the first month of launch.

  • In March 2022 Mankind ran an event to celebrate its one millionth transaction.

SAN DIEGO, CA / ACCESSWIRE / May 31, 2022 / GABY Inc. ("GABY" or the "Company") /zigman2/quotes/207479053/delayed CA:GABY 0.00% (otcqb:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego's Mankind Dispensary ("Mankind "), reported its financial and operating results for the first quarter 2022. All financial information is provided in Canadian dollars unless otherwise indicated. GABYs financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").

  • As part of GABY's rationalization strategy, the operations of Sonoma Pac was shut down in Q3 of 2021 and in Q1-2022 the Company settled SPD's indebtedness to the CDTFA and dissolved SPD eliminating the remaining outstanding payables of $3 million, strengthening its balance sheet and accounts for a part of the improvement in the net loss over Q1 2021.

  • As a result of terminating its low margin wholesale and distribution business and further savings to be realized in 2022 on the USD 3 million reduction of payroll and operating costs implemented late Q4 2021, Management expects continued improvement in income from operations in 2022.

Management anticipates it will be able to sustain revenue, despite consumption normalizing to pre-COVID levels, and continue to generate synergies going forward as its experienced retail management team continues to implement operating efficiencies and well-established retail strategies. Management is particularly focused in 2022 on margin and SG&A improvements at the licensed manufacturing and distribution business and the enhancement of its delivery business.

Margot Micallef, Founder and Chief Executive Officer of GABY commented "I'm impressed with the ability of our experienced retail operating team to continue to generate cost savings and realize synergies in this challenging market. Our dispensary, Mankind, is better merchandized and our sales team is better trained in retail sales techniques and product knowledge than ever before. These improvements coupled with our data analytics give GABY an advantage in attracting new customers and retaining them. I'm convinced that we have the most hands-on experience in retail of any of our competitors and that bodes well for our future," she concluded.

"My experience prior to joining GABY was in extracting the highest gains with the least cost possible. I'm pleased that the operations team is equally focused on that goal and I anticipate Management will be able to continue to realize operating efficiencies in future," said Paul Stacey, Senior Vice-President and Chief Financial Officer of GABY. He continued, "Management's strong retail experience will enable GABY to navigate around the complexities of the cannabis industry and our focus on simplifying operations will allow us to take advantage of the opportunities in the market."

ABOUT GABY

GABY Inc. is a California-focused retail consolidator and the owner of Mankind Dispensary, one of the oldest licensed dispensaries in California. Mankind Dispensary is a well-known and highly respected dispensary with deep roots in the California cannabis community operating in San Diego. GABY curates and sells a diverse portfolio of products, including its own proprietary brands, Kind Republic™ Dank Space™ and Lulu's™ through Mankind, A pioneer in the industry with a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition.

GABY's common shares trade on the Canadian Securities Exchange ("CSE") under the symbol "GABY" and on the OTCQB under the symbol "GABLF". For more information on GABY, visit www.GABYInc.com or the Company's SEDAR profile at www.sedar.com .

For further inquiries, please contact:
General
Margot Micallef, Founder & CEO or Investor Relations at IR@GABYinc.com

Media
Senior Communications Manager
Charlie Rohlfs
(631)579-0858
charlie@gabyinc.com

Currency Presentation

Unless otherwise indicated, all references to "$" or "C$" in this press release refer to Canadian dollars and all references to "US$" in this Listing Statement refer to United States dollars.

/zigman2/quotes/207479053/delayed
CA : Canadian Securities Exchange
$ 0.0050
0.00 0.00%
Volume: 7,500
Dec. 2, 2022 9:30a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.56 million
Rev. per Employee
N/A
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