Attached files
file | filename |
---|---|
EX-99.2 - PRESS RELEASE DATED NOVEMBER 17, 2016 FROM GILLA INC - GILLA INC. | glla_ex992.htm |
8-K - CURRENT REPORT - GILLA INC. | glla8k.htm |
Exhibit
99.1
GILLA RELEASES Q3 2016 RESULTS; PROVIDES FORWARD
GUIDANCE
New York, NY – (November 15, 2016) - Gilla Inc.
(“Gilla” or the “Company”) (OTCQB: GLLA),
the fast-growing designer, manufacturer and marketer of E-liquid
for vaporizers, announced today its financial results for the three
and nine months ended September 30, 2016 which reflected positive
organic revenue growth and continued growth in gross profit
margins.
Q3 2016 HIGHLIGHTS:
●
The Company
generated $1,048,474 in revenue during the three month period ended
September 30, 2016 (“Q3”) through sales of proprietary
E-liquid products as compared to $911,595 in revenue during the
three month period ended June 30, 2016 (“Q2”); a
quarter-over-quarter organic revenue growth of 15%.
●
Gross profit
margins grew from 62% in Q2 to 69% in Q3 as a result of the
Company’s continued efforts to focus on global sales of its
high margin premium E-liquid products.
●
Revenue generated
outside of North America grew to 47% of total sales reflecting
positive results from the Company’s focus on broadening its
sales to international markets (Q1 2016: 3%, Q2 2016:
43%).
●
The Company’s
net loss amounted to $1,043,234 in Q3 as compared to $1,492,225 in
Q2. The 30% quarter-over-quarter decrease in net loss was
attributable to the combined effects of an increase in revenue for
Q3 and realization of significant cost savings from the
consolidation and integration of operating activities from
Company’s acquisitions over the past year.
FORWARD GUIDANCE:
●
Given the expected
growth in revenue and cost efficiencies realized, the Company
reiterates its expectation of achieving a cash flow breakeven run
rate by the end of 2016.
●
Further, the
Company expects to realize over $15 million in revenue in fiscal
2017 resulting in EBITDA in excess of $5 million for the
year.
●
The Company
continues to focus on meeting regulatory requirements in
jurisdictions around the world and confirming long-term access to
global markets for its numerous E-liquid brands. Moving forward,
the Company expects to generate a majority of its revenues from
international markets thus, further geographically diversifying its
already global operations.
“As
expected, the Company reported positive organic revenue growth in
the international markets while driving higher margin returns
during the third quarter as the Company’s core business
continues to transform from a provider of low margin OEM products
to a provider to high margin premium E-liquid products,”
stated J. Graham Simmonds, Chairman and CEO of Gilla. “We
believe this shift in core business reflects the ultimate
destination of our transformed company as a uniquely positioned
global sales and distribution platform established to leverage high
growth opportunities within the growing E-liquid and vapor
industry.”
About Gilla Inc.
Gilla
Inc. manufactures, markets and distributes E-liquid, which is the
liquid used in vaporizers, E-cigarettes, and other vaping hardware
and accessories. E-liquid is heated by the atomizer to deliver the
sensation of smoking. Gilla aims to be a global leader in the
manufacturing and distribution of E-liquid for the vapor industry.
The Company provides consumers with choice and quality across
categories and price points. Gilla’s product portfolio
includes Coil Glaze, The Drip Factory, Surf Sauce, Siren, VaporLiq,
Craft Vapes, Craft Clouds, Vape Warriors, Miss Pennysworth’s
Elixirs, The Mad Alchemist, Replicant and Crown E-liquid
brands.
Forward-looking Statements
Note:
This press release contains “forward looking
statements” as defined in the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
currently available competitive, financial and economic data and
management’s views and assumptions regarding future events.
Such forward-looking statements are inherently uncertain. Gilla
Inc. cannot provide assurances that the matters described in this
press release will be successfully completed or that the company
will realize the anticipated benefits of any transaction. Actual
results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to:
global economic and market conditions; the war on terrorism and the
potential for war or other hostilities in other parts of the world;
the availability of financing and lines of credit; successful
integration of acquired or merged businesses; changes in interest
rates; management’s ability to forecast revenues and control
expenses, especially on a quarterly basis; unexpected decline in
revenues without a corresponding and timely slowdown in expense
growth; the company’s ability to retain key management and
employees; intense competition and the company’s ability to
meet demand at competitive prices and to continue to introduce new
products and new versions of existing products that keep pace with
technological developments, satisfy increasingly sophisticated
customer requirements and achieve market acceptance; relationships
with significant suppliers and customers; as well as other risks
and uncertainties, including but not limited to those detailed from
time to time in Gilla Inc. SEC filings. Gilla Inc. undertakes no
obligation to update information contained in this release. For
further information regarding risks and uncertainties associated
with Gilla Inc.’s business, please refer to the risks and
uncertainties detailed from time to time in Gilla Inc.’s SEC
filings.
For
more information, please visit gilla.com, or
contact:
Mr. J. Graham Simmonds
Chairman and CEO
T: 1
(416) 843-2881
E: graham.simmonds@gilla.com
twitter: @gillainc
For
media inquiries, please contact:
Mr. Don Fenton
VP of Communications
T: 1
(416) 434-3681
E:
don.fenton@gilla.com