TORONTO, Sept. 15, 2022 (GLOBE NEWSWIRE) — Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF), a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, today announced that its U.S. biosciences subsidiary Mikra Cellular Sciences Inc. (“Mikra”) has increased its active monthly subscriber count by 173% in Q3 2022 compared to Q2 2022 for CELLFTM, its first product which combats brain fog and unlocks healthy aging at a cellular level. This level of compounding growth highlights Mikra’s ambition to carve out a significant segment of the emerging cellular health category.
“Mikra is hitting its targeted internal metrics,” said Meni Morim, CEO of Lifeist. “The business is generating positive ROI on its marketing spend, lowering customer acquisition cost, and delivering desired product margins. Importantly, recurring subscriptions are climbing which affords it a stable, growing base of recurring revenue to better scale the business and invest in future growth initiatives.”
Continued Morim, “Mikra’s early success gives us confidence to continue to fuel its growth with additional initiatives. We are investing in product innovation, deploying additional marketing dollars, and expanding manufacturing capacity. Mikra is increasingly well-positioned to be a driver of value creation for Lifeist.”
Launching during Q4 2022, CELLF v1.2 is the latest in Mikra’s innovation across its flagship line CELLF, the modern multivitamin for your cellular health. CELLF v1.2 advances three key objectives for Mikra:
- Expand Distribution. There has been significant inbound demand for CELLF from small, medium, and large chain wholesalers. This newest version of CELLF reduces the size of packaging adhering to best “on shelf” practices while also reducing shipping and logistic costs, such as storage. These improvements are expected to facilitate CELLF’s future growing distribution on online marketplaces and bricks and mortar stores.
- Improve Customer Lifetime Value. Improvement in taste, package dispensing, and environmental consideration have all been addressed in CELLF v1.2. In this newest version, CELLF’s sachet system is fully recyclable and utilizes an “easy to dispense” technology so that a consumer can easily consume CELLF with one hand. Without effecting the delivery mechanism or adding any sugars, the Mikra team has dramatically improved the taste of CELLF which has been one of the key components of customer churn.
- Improve Profitability and Growth. Margins and distribution have been a key focus for Mikra, and with CELLF v1.2, product gross margins are expected to grow to over 65% primarily driven by increased order volume, as well as formulation and supply chain efficiencies. This incremental improvement on CELLF is opening more distribution opportunities within Q4 2022.
Expanded Marketing Activities
As Mikra’s brand footprint grows, it enjoys increased engagement across all social channels and numerous earned media opportunities. Olympic Champion Cullen Jones has deepened his partnership with Mikra by beginning an in-depth partnership with Gear Patrol, a daily magazine for men that covers everything in gear, travel, adventure, design, food, and culture. The partnership, which is expected to launch within Q4 2022, focuses on how CELLF has impacted Jones’ performance and life.
Restricted Share Unit Awards (“RSUs”) and Option Awards
The Lifeist board of directors (“Board”) after market close yesterday, granted an aggregate of 2,084,210 RSUs in favour of two non-employee directors and 468,421 RSUs to a former non-employee director that resigned in July 2022, thereby reserving 2,552,631 commons shares for issuance in connection therewith, in accordance with the rules of the TSX Venture Exchange and the Company’s Restricted Share Unit Plan adopted by the shareholders at the Company’s 2020 AGM. Three quarters of the RSUs granted (an aggregate of 1,563,157 RSUs) to the two non-employee directors vest immediately, with the remaining quarter of the RSUs granted to such individuals vesting on November 30, 2022. All RSUs issued to the former non-employee director vest immediately.
Non-cash awards (RSUs and deferred share units (“DSUs”)) constitute 65% of the baseline compensation paid to non-employee directors of the Company. One non-employee director previously elected receipt of FY2022 non-cash baseline compensation in the form of DSUs. To that end, and in connection with services rendered for calendar quarter Q2 2022, the Company has issued 495,000 DSUs to such director. In accordance with the Company’s Deferred Share Unit Plan, the DSUs are priced based on June 30, 2022 closing price of the Company’s common shares on the TSX Venture Exchange. DSUs align the interests of Company directors with shareholders as DSUs vest immediately but may not be exercised until a director ceases to serve on the Board.
Furthermore, the Board has approved, the grant of 1,000,000 stock options to the CFO of the Company, which are exercisable into common shares of the Company at a price of $0.095 per common share, in accordance with the rules of the TSX Venture Exchange and the Company’s Stock Option Plan. The stock options granted have a term of two years, two-thirds vesting immediately and one-third vesting in equal two tranches at six months and 12 months from the grant date, and expire on September 14, 2024.
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards; CannMart Labs, a BHO extraction facility for the production of high margin cannabis 2.0 products; Australian Vapes, Australia’s largest online retailer of vaporizers and accessories; and Mikra, a biosciences and consumer wellness company seeking to develop innovative therapies for cellular health.
Information on Lifeist and its businesses can be accessed through the links below:
Meni Morim, Lifeist Wellness Inc., CEO
Matt Chesler, CFA, FNK IR, Investor Relations
Email: [email protected]
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 or has in any way approved or disapproved of the contents of this press release.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen.
The forward-looking information contained herein, including, without limitation, statements related to Mikra’s anticipated development and introduction of CELLF v1.2 and the expected growth in product gross margins as a result thereof are made as of the date of this news release and is based on assumptions management believed to be reasonable at the time such statements were made, including, without limitation, expectations that CELLF v1.2 and other cellular health products to be developed by the Company will be developed and sold as anticipated and in a timely manner and gain or continue to gain market acceptance along with the expansion of the market for nutraceutical products, its expectation that the nutraceutical market will develop as currently anticipated, the nutraceutical market will continue to be a multi-billion dollar high-margin market, the introduction of new products and brands will generate additional revenue, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this news release. Such factors include, without limitation: the inability of the Company to develop, as anticipated, CELLF v1.2 or Mikra’s business as a whole, unanticipated changes to current regulations that would adversely impact Mikra’s business, unforeseen developments that would delay Mikra’s ability to sell CELLF v1.2 or any other nutraceutical products, the risk that the expected demand for nutraceutical products in general and those of Mikra in particular does not develop as anticipated and risks relating to the Company’s ability to execute its business strategy and the benefits realizable therefrom. Additional risk factors can also be found in the Company’s current MD&A and annual information form, both of which have been filed under the Company’s SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Source: Lifeist Wellness Inc.