Unrivaled Brands Issues Corporate Update

Company Announces Progress of its Initial 100-Day Turnaround Plan and Shifts Focus to Profitable Growth

SANTA ANA, Calif., Aug. 05, 2022 (GLOBE NEWSWIRE) -- Unrivaled Brands, Inc. (OTCQX: UNRV) ("Unrivaled" or the "Company"), a multi-state vertically integrated company focused on the cannabis sector with operations in California and Oregon, today provided a corporate update related to its previously disclosed 100-day turnaround plan and strategic restructuring to reduce costs, drive efficiency, and identify a path to profitable growth.

Eric Baum, Chairman of the Board of Unrivaled Brands, stated, “In the company’s initial communications to shareholders in May, we indicated our immediate focus was on our 100-day plan to stabilize operations, protect our performing assets, create a sustainable debt position, and put us on a path to profitability in an increasingly challenging industry and troubled California market. I am pleased to announce progress against this plan - though humbly recognize that there is still significant work ahead of us.

“Beginning in March we conducted a thorough review of the company’s balance sheet and determined the health and sustainability of each of our business units. In Q2 we took decisive action to meaningfully reset the cost structure including tightening operations, improving financial systems and controls, and restructuring our debt.

“We have since closed several under-performing assets, significantly reduced management and workforce positions, reducing our SG&A run rate by about $5MM a year. We have shifted our strategy to focus on operations in Oregon, our retail stores in Oakland and Santa Ana, and the marketing and licensing of Korova, which remains one of the most sought-after brands on the West Coast.

More specifically, the Company has completed the following:

• Outsourcing Distribution. In June 2022, Unrivaled partnered with a leading North American distributor of cannabis and cannabis accessories, with a strong fulfillment infrastructure, to manage distribution of its brands, while simultaneously exiting third-party distribution engagements which were negatively affecting cash flow.
  
  
• Closing Under-Performing Retail. Unrivaled closed underperforming retail locations in Los Angeles, San Leandro, and Sacramento, California. Where possible, assets from these sites have been deployed elsewhere to support other business operations. The company is actively marketing the closed assets and licenses.