Vibe Reports Record Positive Adjusted EBITDA and Revenue; Provides First Quarter 2020 Financial Results and Second Quarter Outlook

SACRAMENTO, Calif., May 28, 2020 (GLOBE NEWSWIRE) -- Vibe Bioscience Ltd. (CSE:VIBE)(OTC:VBSCF) (the “Company” or “Vibe”), a vertically integrated cannabis retailer and marijuana cultivator, is pleased to announce record quarterly Adjusted EBITDA during the first quarter of 2020 as a result of significantly increased year-over-year sales volumes at its California dispensaries, and reports the financial and operating results for the three months ended March 31, 2020. All financial information is provided in U.S. dollars unless otherwise indicated. The Financial Statements and Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2020 are available on the Company’s SEDAR profile at www.sedar.com and on Vibe’s website at www.vibebycalifornia.com.

“The first quarter of 2020 marked a significant milestone for Vibe,” stated Mark Waldron, Chief Executive Officer.  “Not only did we achieve record dispensary sales volumes and positive adjusted EBITDA, Vibe was one of only a few public cannabis companies to achieve positive pre-tax net income during a challenging quarter. Our results reinforce our belief that providing exceptional experiences to our customers while aggressively managing costs positions Vibe to become a leading California retailer and creator of long-term value for our shareholders.”

First Quarter 2020 Financial Highlights ^(a)

• Adjusted EBITDA of $335,549, a 312% increase from the fourth quarter of 2019 and a 466% increase over the $59,336 recorded during the 42 days recorded in the first quarter of 2019;
  
  
• Revenue was $4.27 million, a 225% increase over the first quarter of 2019;
  
  
• Pre-tax income from operations was $44,329;
  
  
• Gross margin reached $1.47 million, a 25% increase over Q4 2019 and year-over-year growth of 152%; 
  
  
• Net loss narrowed to $0.22 million, a decrease of approximately $2 million year-over-year;
  
  
• Adjusted funds flow was $13,273 versus a negative $709,650 of adjusted funds flow in the first quarter of 2019; and
  
  
• Total general and administrative expenses decreased by 22% to $0.62 million compared to the fourth quarter of 2019.

Second Quarter 2020 Outlook

• Vibe is on pace to generate positive net income for the quarter, one of only a few publicly traded cannabis operators to achieve profitability;
  
  
• The Company is seeing an increase in merger, acquisition and business development opportunities. At the same time, the capital markets appear more receptive to funding accretive asset development situations. To position itself for these emerging opportunities, the Company has added M&A personnel and resources;