Leef Brands Inc.

Leef Brands Inc. filed an S-1 registration statement for the resale of up to 81,555,686 common shares by existing security holders. The company will not receive proceeds from these sales but anticipates approximately $7.0 million from the cash exercise of 32,504,144 purchase warrants. Leef Brands reported a 22% revenue growth to $34.8 million in 2025 and improved gross margins, but also noted net losses of $17.6 million in 2025 and $24.6 million in 2024, indicating a need for additional capital.

On May 18, 2026, Leef Brands Inc. completed a previously announced financing, raising approximately US$9.3 million in gross proceeds. The company issued 33,146,842 Common Share Units at CN$0.25 per unit, each including one common share and one common share purchase warrant. Additionally, 11,084,132 Preferred Shares were issued, carrying a 15% annual dividend and convertible into common shares at CN$0.38. The financing was led by Mindset Capital and included participation from existing shareholders, new strategic investors, and company executives.

Leef Brands Inc. reported a net loss of $0.43 million for the three months ended March 31, 2026, a decline from a net income of $0.27 million in the prior year period, despite a 123% increase in gross profit to $4.62 million. While net revenue remained stable at $9.38 million, the company significantly improved its operating income to $1.28 million from a loss of $1.91 million year-over-year. However, the company's accumulated deficit grew to $139.80 million, and management expressed substantial doubt about its ability to continue as a going concern.

Leef Brands Inc. announced the completion of its merger with SHI. As consideration, the company issued 12,592,960 common shares to SHI's senior preferred stockholders and paid $10,000 in cash to other SHI stockholders. Additionally, Leef Brands issued 1,095,040 common shares and warrants for 547,520 common shares to certain executive officers of SHI who were retained by the company. All these securities were issued in unregistered sales.