Good morning, everyone, and thank you for making the time. I'm John Celenza, Founder and Chairman and CEO of Cizzle Brands, and I'm joined this morning by our CFO, Steven Tschirhart. Yesterday, we put out our third quarter results covering the three and nine months ended April 30th. The news release, our financial statements, our MD&A are all on SEDAR and on our website. I'll spend a few minutes on the quarter and where we're talking the business. Then Steve and I will open it up for your questions. Some forward-looking information. Before I get into the quarter, I need to cover a couple of housekeeping items. Today's call contains forward-looking information within the meaning of applicable Canadian security laws. Statements about our expected financial results, the ramp and expected contribution of our manufacturing business, our retail expansion and product plans, our growth strategy, our capital structure and financing plans, and our path forward towards sustained profitability. Forward-looking information is based on assumptions and is subject to known and unknown risks and uncertainties that could cause actual results to defer materially. These include competition and general economic conditions, access and supply risks, reliance on key personnel, operational risks, including manufacturing facility utilizations and reliance on third-party volume commitments, reliance on third-party logistics and single-source suppliers, regulatory risks, and financing, capitalization, and liquidity risks. There can be no assurance this information will prove accurate, and you should not place undue reliance on it. We undertake no obligation to update it except as required by law. For the full description, please refer to the cautionary note in yesterday's news release and to the risk factors in our MD&A and other filings on SEDAR. I'll also refer today to certain non-IFRS measures, including EBITDA and adjusted EBITDA. These are not recognized under IFRS, do not have a standardized meaning, and may not be comparable to measures used by our other companies. They should not be considered in isolation or as a substitute for our IFRS results, and you'll find reconciliations to the most comparable IFRS measures in our MD&A. Now that the lawyers are happy, let's actually talk about the business. When we think about Cizzle Brands, at our core, we are still very much a house of brands. Coming off a successful quarter, the big thing that I could share with everybody today is our velocity. Year one fiscal year, CAD 13.5 million in sales. What did that do? All those hockey arenas, soccer fields, independent sporting goods, independent regional nutritional chains, what they did is they proved out our brand. They proved out our thesis. They proved that our grassroots approach within the communities that we were targeting was providing velocity on the shelf. At the end of the day, your relationships can be 17 years old, that's as long as I've been in this industry, and they can get you maybe into the door, but your velocity is going to do the talking at the end of the day. What our velocity in those accounts have shown is that now bigger box retailers are now not only expanding our footprint, but new ones are coming on board. That's what's caused a lot of the great press releases we've had lately with a bunch of retail expansion and plenty more to come. In my experience with my previous brand that we had a successful exit with in 2019, it took 10 years to get to the point where we've been able to get to with Cizzle Brands, predominantly sales from CWENCH Hydration, in just two years. The fact that we're getting all this big box activation now coming into our pipeline is really a testament, again, to our velocity and the initial work done by our team here at Cizzle Brands. When I look at the commercialization of the business, and you'll be seeing some new hires coming along in the coming months and weeks, I found in my experience, there's two sets of people. There's builders, and then there's operators. We have a bunch of our old commercial team members from the previous venture that we've now proved the business to coming on board. With these new big box relationships, it gets a little bit more complicated in terms of the planograms, the velocities that are required, the marketing programs in place that you really need a team to work on. That's when the business really jumps. I remember my previous venture, we were at around CAD 14 million in sales, and I saw that jump into the CAD 20 million, the CAD 50 million, into the CAD 100 million mark net revenue across the portfolio of brands, and that's exactly where we are today, only two years in. That's what our future looks like on the brand side. Because we are vertically integrated on the manufacturing side, our margins are incredibly healthy. Even though logistic costs with higher fuel and storage have gone up, we remain on the brand side in and around that 45%-55% gross margin range. When we talk about the manufacturing facility, there was this buy Christmas Eve of this manufacturing facility in Aurora, Ontario, literally December 24th. We are the largest co-manufacturer of 500 ml Tetra Pak in North America. If you're not making product with us, you either own your own facility or you're making the product in Mexico. For this calendar year, because we started operating in January, the plan is on pace to do CAD 18 million-CAD 20 million in EBITDA. OIC provided us the debt for that acquisition. We are more than comfortable with our ratios in servicing the debt, the way that the plant is producing cash. We're already focused on calendar 2027 for the plant, we are well on our way to selling the plant out and being at full capacity. What does that mean? That means for calendar 2027, we'll be able to produce CAD 35 million-CAD 40 million of EBITDA at the plant. The plant came with CAD 184 million in guaranteed take-or-pay agreements. What does take-or-pay mean? It means that if they do not produce the product, we're still getting the cash. Our largest client at the plant is Anheuser-Busch, because Anheuser-Busch just recently purchased BeatBox, which was our biggest partner at the plant. We have A-list customers growing like crazy on top of CWENCH growing like crazy. It's in a very good position to hit that CAD 35 million-CAD 40 million EBITDA mark for the next year. That's producing 500 ml packaging, 1 L, 330 ml, 200 ml. We've now discovered that we can also have the ability to do cold brew coffee, which is very much a growing sector in the CPG space as well. When I look at creating value for our shareholders, and please fact check this till you're blue in the face, when you're looking at the manufacturing side of the business, and you can reference Waterloo Brewing for any of the Canadians on the call as an example, 10x to 12 x EBITDA is the norm. We're looking at doing calendar 2027, CAD 35 million-CAD 40 million of EBITDA in contracted take-or-pay agreements. Right now, I haven't checked the stock this morning, but somewhere between a CAD 60 million-CAD 70 million Canadian market cap, and we're looking at doing CAD 35 million-CAD 40 million of EBITDA just at our manufacturing facility next year. On the brand side of the business, again, I've been at it 17 years. 4x, 5x, 6x, 7x, Setti might tell you if he was on the call, 8x, if you're comparing to Celsius. 4x to 5x net sales on a valuation standpoint is more than fair for a company growing like ours is. Our goal is to be at that CAD 100 million in net sales mark on the brand side within the next three years. When you're looking at that from a combined entity, 5x sales on the brand side, 10x to 12x EBITDA on the manufacturing side, you're looking at a valuation, just on industry trends over the last 20 years, above 10 x what we're trading at today. That's how we're looking at value, and that's what we're focused on every single day with this business. To dive specifically into the quarter, revenue for the quarter was CAD 12.6 million, up 253% from CAD 3.6 million a year ago. I'm not just going to give you a big flashy percentage. Obviously, that had to do with the acquisition of the manufacturing facility. Of that, CAD 9.3 million came from that manufacturing facility. We knew it would generate revenue at that kind of level, and that was the part of what made the factory attractive to acquire in the first place. The performance of the factory, together with the tighter marketing spend on the brand side, helped us generate positive adjusted EBITDA of CAD 300,000 compared to CAD -2.4 million a year ago. This is our first positive adjusted EBITDA quarter in company history, and we expect it to be the first of many. When many of you first signed up to invest in this company, we said it would be three years. We're proud to bring you that result within the first two years. Gross profit was CAD 5.4 million, up from CAD 1.9 million. Our blended gross margin was 43%, down from 52%, which obviously reflects the manufacturing facility, which is a higher volume, lower margin business. To stay above from a blended standpoint, that gold standard of 40% margin is something that we're very proud of, especially with our operating team. As branded revenue grows on top of this manufacturing base, we expect to mix to move our margins back up over time. For the nine months, revenue was about CAD 21 million, more than double last year. Just a quick update on the balance sheet. On the balance sheet, we closed the quarter with roughly CAD 2.5 million in cash. Since quarter end, we closed a senior secured convertible note for proceeds of $6.2 million, and we completed a separate CAD 1 million convertible note that converted into equity, which has strengthened our balance sheet. We intend to keep managing our capital structure prudently as we scale revenue and improve our margins. Now I'm going to transition it to questions. I just realized that we were off camera as well. Adam, if we can trigger so Steven and I can get on camera, that'd be helpful as well. We will open up the floor to any questions. Thank you, Adam. There we are, Steve. Everybody can see your new great haircut. There we go. We'll open up the floor. Just raise your hands if you have a question. Any participants on the call, there's a raise button if you have a question. Frank has a question. Arnold? Go ahead, Frank. He just has to turn on his mic. Frank? Frank, if you turn on your mic, we'll be able to get your question. Adam's provided you permission to turn on the mic. Can you guys hear me? We can hear you, Frank. Okay. What would you say would be the three largest issues right now? The three largest issues right now? Three largest issues for the company right now would be forecasting with all the big box relationships coming on and the lead time required. We try to keep four months of inventory on hand, but you never know when a surprise coming. Granted, that we're now vertically integrated on the ready-to-drink side is very helpful, but forecasting with the big box relationships would be the biggest concern right now. When you pick up some of the accounts that we are right now, you don't want to be late on delivery, A, because they won't let you back in, and also the fines are very hefty. Second biggest concern for the company would be anything on the manufacturing facility. Obviously, we're well-insured, and we have the Tetra maintenance plan, what have you. Anything that can go down at the Tetra facility that cause any inefficiency is of a permanent concern. That plant needs to be running 24/7, which it is, only down for cleaning. Any little hitch there with the machine, that could really affect our efficiencies. Granted, we have [ludwing] on staff, who literally walks around with a wrench all day, fixing anything that falls through. That would be the second greatest concern, and that, again, contributes to our ability to provide product not only for our own brand, but for others. Third would just be the amount of time. The big box relationships reset their planograms. When I first got into this industry, it was twice a year where you could get in, and sometimes if you had a hot brand, you could cut in overnight. With the retail landscaping changing and online becoming so much more prevalent, you really only get one kick of the can per year to get into these big box stores. Those would be my three biggest concerns right now, Frank. Thanks, John. Arnold, if you turn on your mic, we got you. Oh, can you hear me now? We can hear you, Arnold. Yeah. You keep announcing what look like significant distribution deals. In the face of that, what are we to make of the fact that drink sales are down? Are you commenting on the category, Arnold? Drink sales in the category are up. Are you talking about CWENCH specifically? I'm talking about the revenue generated other than from the new activities. Those big box announcements, Arnold, we announce them when we get the listing, it takes a couple of months for the product to get on shelf. Okay. Several months ago, you announced new deals. Why are sales down? Arnold, sales would be down quarter-over-quarter. When you're coming off of initial year of pipe fill, where they take a bunch of product and now you're only selling off of velocity, the fact that we're still in and around that range without any pipe fill and it's just our product that's coming off the shelves is a true testament to the brand. Also, on the powder side of the business, we're missing a couple million dollars in sales that's going to be back-loaded to this quarter and the start of next fiscal year as well, as two of our powder manufacturers went out of business. The powder game's very much become a commodity. They lost two clients that completely put them under. We had a two-and-a-half-month delay where we had to find a third manufacturer to redo our powder products with. That would contribute to that as well. Again, it's just more timing with retailers and a lot of the stuff we're announcing, we'll just start to see the revenue from in the coming months here. Are the sales generally in line with what you've been expecting? Yes. Okay, thank you. All right. Back to Frank. I didn't have a question. I'm not exactly sure what happened there. Thanks, Frank. Frank's just saying hi. Howard Howard. No question from Howard? Okay. Are there any other questions from the floor? Okay, seems like there's none. I just want to thank everyone for joining this morning. Thank you for your continued support. Obviously, I'm biased, but I'm thrilled in the direction in which we're going in such a short amount of time. Again, I've walked this road before, and to be in this place this early with the business is truly exciting. I'm not saying that to be cliché. You come up with these ideas and these plans, and you think about them all night, and then to actually see it coming to fruition and the team to be working the way it is, it's truly exciting around here right now. Thank you for the continued support. If you haven't thought of a question right now, you can always get ahold of me or Setti or Steve. We're happy to jump on a call or answer any questions at any time. Everyone, have a great day. Again, if there's something that you missed, just reach out and we got you. Take care, everyone.
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