Leef Brands (LEEF) Registration filing summary

Company overview and business model

• Vertically integrated cannabis company focused on bulk concentrate production for B2B sales in California and New York, with operations spanning cultivation, extraction, and manufacturing.

• Owns a 1,900-acre ranch in Santa Barbara County, CA, with 179.9 acres licensed for cannabis cultivation, supporting vertical integration and cost control.

• Operates advanced extraction facilities with ethanol, hydrocarbon, and solventless lines, supplying major brands and retailers.

• Recent acquisition of Standard Holdings, Inc. (HIMALAYA VAPOR) expands product portfolio and customer base.

• Holds a Type 1 Processor license in New York, enabling multi-state operations and expansion.

Financial performance and metrics

• FY 2025 revenue grew 22% to $34.8M, with gross profit of $10.5M and gross margin rising to 30% from 27% in 2024.

• Q1 2026 revenue was $9.4M, gross margin 49%, and adjusted EBITDA $2.4M, reflecting margin expansion from in-house cultivation.

• Net loss for 2025 was $17.6M, improved from $24.6M in 2024; Q1 2026 net loss was $426K.

• Cash used in operations for 2025 was $337K, with $2.2M cash on hand at year-end.

• Accumulated deficit of $139.4M and working capital deficit of $200K as of December 2025.

Use of proceeds and capital allocation

• No proceeds from the resale of shares by selling security holders; company will receive up to $7M from warrant exercises.

• Recent $4.5M equity financing used to support operations and expansion of cultivation.

• Capital allocation focused on scaling cultivation, facility improvements, and reducing debt.