Cizzle Brands 40-F: C$42.4M FY2026 Loss, Going-Concern Warning, C$52.1M Working Capital Deficit
CZZLF has more than doubled off its 52-week low of $0.049.
Summary
Cizzle Brands' first audited annual report shows fiscal 2026 revenue up 153% to C$33.4 million but a C$42.4 million net loss, a C$52.1 million working capital deficit and an auditor going-concern warning — with C$107.3 million of debt and a December 2026 note maturity hanging on the pending US$15 million Nasdaq offering.
Key Events · Earnings and Guidance · CZZLF
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Fiscal 2026 Results: Revenue Up, Loss Widens
Net sales rose 153% to C$33,366,433 from C$13,184,554, driven by C$21,541,535 of contract manufacturing revenue from the plant acquired December 23, 2025. The net loss widened to C$42,399,147 from C$13,858,831.
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Loss Is Mostly Non-Cash Remeasurement
C$18,095,357 of the loss is a non-cash change in fair value of debt and warrant liabilities, plus C$8,023,022 of depreciation and amortization. Adjusted EBITDA loss improved to C$4,181,400 from C$8,898,558.
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Going-Concern Warning From Auditor
MNP's report cites a material uncertainty: negative operating cash flow of C$8,975,274, a C$52,110,837 working capital deficiency, a C$60,815,469 accumulated deficit and a C$24,259,291 shareholders' deficiency at July 31, 2026.
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C$107.3M Debt, VTB Note Due December 2026
Indebtedness was approximately C$107,306,008 at October 1, 2026. The C$22.25 million VTB Note matures December 23, 2026 unless US$10 million is repaid from the offering and the extension to December 31, 2027 takes effect.
Analysis · CZZLF · Manufacturing
The audited annual report puts hard numbers on a business that is growing revenue fast but still burning cash. Fiscal 2026 net sales rose 153% to C$33.4 million, largely from the December 2025 acquisition of the Tetra Pak manufacturing plant, yet the net loss widened to C$42.4 million from C$13.9 million. Most of that loss is non-cash: an C$18.1 million mark-to-market loss on debt and warrant liabilities plus C$8.0 million of depreciation and amortization. The cash picture is the real issue — operations used C$9.0 million, the company ended July with C$6.0 million of cash against a C$52.1 million working capital deficit and a C$24.3 million shareholders' deficiency, and the auditor attached a going-concern material uncertainty. Roughly C$107.3 million of debt was outstanding at October 1, 2026, with the C$22.25 million VTB Note due December 23, 2026 unless the US$10 million repayment and extension conditions tied to the pending US$15 million Nasdaq offering are met. The offering, the 1-for-25 reverse split and the note conversions are the events that decide whether this balance sheet holds.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 36.5% of the 953 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.66%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CZZLF was trading at $0.24 on OTC in the Manufacturing sector, with a market capitalization of approximately $54.2M. The 52-week trading range was $0.05 to $1.50. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.