Neural Portfolio Company Hanf.com Reports Strong Fiscal 2025 Results with 58% Revenue Growth and Positive Normalized Operating Income

Executive Summary

• Neural Therapeutics reports preliminary unaudited FY 2025 results for its portfolio company CWE (Hanf.com), showing ~58% revenue growth to CAD $11.2 M versus CAD $7.1 M in 2024.
• Gross margin declined to ~35% from ~58% due to a shift toward lower‑margin wholesale distribution, while SG&A expenses fell modestly to ~38% of revenue.
• On a normalized basis CWE is expected to generate positive operating income (~CAD $280 K); the reported net loss reflects non‑recurring, non‑cash debt settlement and professional fees (~CAD $600 K).

Key Details

• Ownership: Neural holds 30.75% of CWE following the Strategic Investment and Option Agreement dated May 26 2025; retains right (Series B option) to acquire the remaining 69.25%.
• Revenue: FY 2025 estimated total revenue ≈ CAD $11.2 M (€7.1 M), up ~58% YoY from CAD $7.1 M in FY 2024.
• Gross Margin: Estimated at ~35% for FY 2025, down from ~58% in FY 2024, driven by higher proportion of wholesale sales.
• SG&A Expenses: Decreased to roughly 38% of revenue (FY 2025) versus 40% (FY 2024), indicating improved operating leverage.
• Normalized Operating Income: Projected positive at ≈ CAD $280 K for FY 2025.
• Net Loss Items: Includes non‑recurring, non‑cash debt settlement transactions and go‑public professional fees of ~CAD $600 K incurred in Q4 2025; these do not affect operating cash flow.
• Financial Presentation: Figures are preliminary, management‑prepared, unaudited, and subject to change upon audit. Audited statements will be included in the Management Information Circular for the 2026 shareholders’ meeting.
• Shareholders' Meeting: Previously announced meeting cancelled; will be rescheduled to allow additional time for disclosure preparation. The meeting will seek shareholder approval of matters including potential exercise of the Series B option and related ancillary transactions, subject to regulatory approvals.
• Strategic Context: Expansion into wholesale distribution broadens Hanf.com’s national footprint in Germany, supporting continued growth and profitability on a normalized basis.

Notable Quotes

“Fiscal 2025 was a pivotal year for CWE as we delivered approximately 58% revenue growth while maintaining positive normalized operating income…we remain focused on execution, operational efficiency, and building long‑term value for our shareholders.” – Ronnie Jaegermann, CEO, CWE

All non‑material boilerplate, forward‑looking statements, and regulatory footers have been omitted.