Toronto, Ontario--(Newsfile Corp. - October 28, 2024) - THS Maple Holdings Ltd. (TSXV: YAY) (the "Company" or "THS"), a leading producer and global distributor of maple syrup and maple-flavored products, is pleased to announce that its Board of Directors has approved the Company's audited financial statements for the seven-month period ended June 30, 2024. These statements have been filed today in accordance with TSX Venture Exchange and regulatory requirements.
On April 26, 2024, the Company completed a reverse take-over of Toronto Cleantech Capital Inc., a capital pool company ("TCC"). The transaction constituted a "Qualifying Transaction" under the policies of the TSX Venture Exchange. The Company therefore became the business of the entity resulting from the reverse take-over. This transaction, combined with a private placement of more than $4.2 million, enabled the Company to repay its subordinated secured promissory note on April 29, 2024.
As part of the Company's ongoing efforts to align its financial reporting with operational activities, THS has transitioned its fiscal year-end from November 30 to June 30, effective December 1, 2023. This change allows the Company to better reflect the seasonality of its maple syrup production and travel-related sales, both of which typically peak in the spring and summer months. The Company's next 12-month fiscal period commenced on July 1, 2024, and will end on June 30, 2025. The comparative period for the Company's 7 months ended June 30, 2024 is the 12 month period ended November 30, 2023.
| Financial Performance Highlights | 7 Months Ended June 30, 2024 | 12 Months Ended November 30, 2023 |
| Sales | $ 5,808,042 | $ 10,308,047 |
| Cost of sales | $ 4,649,351 | $ 8,469,227 |
| Gross profit | $ 1,158,691 | $ 1,838,820 |
| Selling expenses | $ 564,087 | $ 1,043,847 |
| Administrative expenses | $ 1,451,068 | $ 1,639,750 |
| Operating loss | -$ 856,464 | -$ 844,777 |
| Listing expense (Non-recurring) | $ 1,700,390 | $ - |
| Loss on settlement of debt (Non-recurring) | $ - | $ 911,314 |
| Finance costs and Other Income | $ 442,089 | $ 910,048 |
| Pre-tax loss | -$ 2,998,943 | -$ 2,666,139 |
| Net loss per share | -$ 0.083 | -$ 0.133 |
For the transition period ended June 30, 2024, THS reported revenue of $5.8 million over seven months, compared to $10.3 million for the previous 12-month fiscal period. The Company achieved a gross margin of 20.0%, reflecting an improvement from 17.8% in the prior year, despite temporary challenges with supply costs and raw material shortages. Based on historical trends, the Company expects that margins will improve as production scales to meet increased sales volumes in the late spring to fall season, which will mostly be captured in the next fiscal year.
Operating expenses for the period were $2.02 million including non-recurring incremental charges for audit and legal expenses associated with the reverse take-over, estimated to be approximately $350,000. The Company also incurred a one-time (non-cash) listing expense of $1,700,390 associated with the Company's reverse takeover and public listing under TSX Venture Exchange policies. This expense includes the fair value of TCC's net assets as well as the benefit of becoming a publicly traded company and enhanced access to broader capital markets.
Strategic Outlook and Growth Plans
THS Maple Holdings continues to see strong demand for its maple syrup and maple-flavored products, which are sold under its proprietary brands Turkey Hill, Echo Mountain, and Herman's 76. The Company has strategically positioned itself to benefit from the growing consumer interest in natural sweeteners and food products. Maple syrup, with its organic origins and low environmental impact, aligns with global trends toward healthier, more sustainable consumption.
In addition to its traditional distribution channels to retail partners, the Company recently expanded its footprint by acquiring a retail kiosk in the Old Port of Montreal. This venture into direct-to-consumer retail has enabled THS to capture valuable consumer insights while broadening its brand presence in the Canadian tourism market.
THS currently serves customers in over 20 countries around the world, including the UK, the US, the UAE, China and South Korea. During the fiscal year, the Company started planning for the opening of its first US warehouse and distribution centre that will enable growth in its American customer base.
CEO Comment
"We are excited about the opportunities ahead as we continue to grow our brand presence both domestically and internationally. The transition to a new fiscal year-end allows us to better synchronize our reporting with the natural cycle of our business, positioning us for stronger growth in the years to come," said Tom Zaffis, CEO of THS Maple Holdings Ltd.
THS remains committed to exploring new markets and expanding its product offerings in the gift and souvenir channels, while leveraging its operational strengths and the increasing demand for maple products. The Company continues to optimize production efficiency and expand distribution in both Canada and around the world.
Notice of Annual General Meeting
THS is also announcing that it will hold its Annual General Meeting, for the fiscal year ended June 30, 2024, on Wednesday, December 4, 2024, at 2:00pm at the offices of Borden Ladner Gervais LLP, Suite 3400, 22 Adelaide Street West, Toronto, ON M5H 4E3.
For further information, please contact:
David Beutel
Chairman, THS Maple Holdings Ltd.
(647) 401-8834
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts". "estimates", "believes" or intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could, "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements relate, among other things, to: the expectation that the Company's margins will improve; the benefits associated with becoming a publicly traded company and having access to broader capital markets; the benefits of acquiring a retail kiosk in the Old Port of Montreal; the viability of the Company opening its first US warehouse; and the Company's ability to optimize production and expand distribution. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, THS assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
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SOURCE: THS Maple Holdings Ltd.
