NUGL Reports Q3 2026 Results as KAYA Marks a Decade in Jamaica’s Regulated Cannabis Market

Nine month revenue rises 20% to $3.15 million, while operating income increases 77% as KAYA focuses on margins, cash generation and operating discipline

KINGSTON, Jamaica and LOS ANGELES, Nov. 12, 2026 (GLOBE NEWSWIRE) -- NUGL, Inc. (OTC: NUGL) (“NUGL” or the “Company”), operator of the KAYA cannabis and lifestyle brand in Jamaica, today reported results for the three and nine months ended September 30, 2026.

Revenue for the first nine months of 2026 increased 20.0% to $3.147 million, while operating income rose 77.0% to $301,869. Net cash provided by operating activities increased to $282,962, compared with $154,692 during the same period last year.

Third quarter revenue increased 3.2% to $1.037 million. Gross profit rose 7.3% to $601,154, lifting gross margin to approximately 58.0% from 55.7% a year earlier, while operating income increased 10.2% to $142,892.

Q3 September 30, 2026 Financial Result

Financial measure	Q3 2026		Nine months 2026
Revenue	$1,037,021 (+3.2%)		$3,146,960 (+20.0%)
Gross profit	$601,154 (+7.3%)		$1,672,834 (+15.4%)
Operating income	$142,892 (+10.2%)		$301,869 (+77.0%)
Net income	$188,598		$124,488

Periods ended September 30, 2026. Percentages in parentheses show year-over-year growth.

For the three months ended September 30, 2026:

• Gross margin increased to approximately 58.0%, from approximately 55.7%.
  

For the nine months ended September 30, 2026:

• Net cash provided by operating activities increased to $282,962, compared with $154,692 in the prior year period.
  

Third-quarter net income was $188,598, compared with $474,610 in the prior year quarter, a decline of 60.3%. The year over year comparison was significantly affected by changes in the fair value of derivative liabilities and other non operating items. Operating income increased 10.2% to $142,892.

Cash and cash equivalents were $226,415 at September 30, 2026, compared with $121,554 at December 31, 2025.

Working capital improved to $169,403, compared with a working capital deficit of approximately $52,000 at year end 2025.

The results come nearly a decade after KAYA entered Jamaica’s emerging regulated cannabis industry, during which the global sector shifted from limited legal supply and rapid expansion to increasingly competitive markets where pricing, efficiency, cash generation and differentiation are more important.

A Decade in Jamaica’s Cannabis Market

KAYA’s history began during the formation of Jamaica’s regulated cannabis industry. In 2015, the team participated in legal cannabis research, cultivation and processing with the University of Technology, Jamaica under one of two early research and development authorizations issued by the Government of Jamaica.

The program progressed into legal research cultivation at the UTech Ganja Lab in 2016 and included the cultivation and testing of more than 45 cannabis genetics.

Kaya Farms subsequently received its commercial cultivation licence and completed its first regulated commercial harvest in February 2018 under Jamaica’s Cannabis Licensing Authority.

On March 10, 2018, Kaya Herb House Drax Hall opened as Jamaica’s first legal medical cannabis dispensary and the first regulated cannabis retail operation of its kind in the Caribbean. The location established KAYA’s model of combining cannabis retail with food and beverage, hospitality, music, events and Jamaican culture.

KAYA later expanded its retail footprint to Falmouth, Kingston and Ocho Rios and added licensed processing through Kaya Extracts. The Group entered international markets with its first commercial cannabis oil export to the Cayman Islands in 2020 and cannabis flower exports to Australia in 2021.

Today, KAYA operates four licensed medical cannabis retail locations together with cultivation, processing, Kaya Pizza, Square Grouper Bar and other hospitality and experiential businesses.

From Ganja Supply to Ganja Economics

The cannabis industry KAYA entered a decade ago is materially different from the market today.

Growing supply across established cannabis markets has increased pricing pressure, reshaping market economics. Locally, compliant businesses continue to face competition from the illicit market, which does not carry the same regulatory costs. As global dynamics shift from rapid expansion toward disciplined execution, sustainable growth relies on operational efficiency, margin expansion, strong brand equity and optimizing core assets.

Management believes KAYA’s competitive position is increasingly tied to its vertically integrated Jamaican operations and the broader consumer experience surrounding the cannabis product.

“We have spent more than a decade learning what we are good at and, just as importantly, what we do not need to be,” said Bali Vaswani, Chief Executive Officer of NUGL, Inc.

“Our focus is Jamaica: producing consistent, high-grade ganja efficiently; converting that production into products our customers want; controlling the experience through our own retail locations; and building food, hospitality, tourism and culture around KAYA. We do not need to chase every category or every market simply because it becomes available.”

“There is significant work ahead, but the direction of the business is becoming clearer. Edibles are still not legal in Jamaica, where they represent a significant product category in more mature cannabis markets, leaving additional room for the Jamaican market to develop as regulations evolve.”

“KAYA also has something we believe is difficult to replicate. We have spent a decade operating at the intersection of ganja and Jamaica, combining cultivation, genetics, processing and retail with food, music, hospitality, tourism and culture. You can grow cannabis in many places. You cannot recreate Jamaica.”

Operating Strategy

Management’s priorities are increasingly centered on improving productivity and returns from KAYA’s existing vertically integrated platform, maximizing efficiency at every stage of its seed-to-sale operations.

The Company is focused on gross margin, operating cash generation, revenue per location, cultivation efficiency, compliant distribution and delivery, third-party product sales, hospitality and tourism revenue, strategic collaborations, and greater utilization of existing assets.

KAYA currently operates medical cannabis retail locations in Drax Hall, Kingston, Falmouth and Ocho Rios, supported by Kaya Farms and Kaya Extracts.

Kaya Pizza operates at Drax Hall and Ocho Rios, while Square Grouper Bar operates at Drax Hall and Kingston.

KAYA’s international collaborations include TYSON 2.0, the cannabis and wellness brand founded by Mike Tyson. TYSON 2.0 products are cultivated locally and are now available across all four KAYA retail locations, extending the relationship from its initial Jamaican launch into an active part of the Company’s retail platform.

At Drax Hall, the Company has continued broadening the destination offering, including the recent addition of five pickleball courts alongside cannabis retail, food and beverage, events and farm related experiences.

Management believes the combination of cannabis, hospitality, food and beverage, and experiential offerings creates multiple revenue streams while reducing the Company’s dependence on the pricing of any single cannabis product.

Outlook

For the remainder of 2026, NUGL intends to maintain its focus on operating performance, cash generation and disciplined capital allocation.

The Company continues to evaluate opportunities across cannabis retail, cultivation, processing, hospitality, food and beverage, tourism, strategic collaborations and further development of its NUGL.AI digital platform.

Management also continues to monitor the development of regulated cannabis markets internationally, particularly in areas where KAYA’s operating experience, genetics, products, retail platform or strategic relationships could create opportunities without requiring significant capital deployment.

“Our first decade was about building the foundation for a heavily regulated industry,” said Vaswani. “The next phase centers on driving efficiency, discipline and value while positioning ourselves for expanding global opportunities.”

About NUGL, Inc.

NUGL, Inc. is a cannabis lifestyle and technology company operating through the KAYA Group in Jamaica and through the developing NUGL.AI digital intelligence platform and marketplace designed for the cannabis, digital asset, and emerging biotech industries. It functions as a searchable, data-driven layer that tracks real-time market signals, sentiment, and sector news.

Through KAYA, the Company operates licensed medical cannabis retail locations, cultivation and processing operations, food and beverage concepts, hospitality and experiential offerings, branded merchandise and strategic collaborations. Kaya Herb House, Drax Hall opened in March 2018 and serves as the Company’s flagship operating location.

For more information, visit www.kayaherbhouse.com or follow KAYA at @kaya.inc.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor a solicitation of any vote or approval with respect to any transaction or otherwise. No offer of securities shall be made except in accordance with applicable law, including by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Forward Looking Statements

This press release contains forward looking statements regarding, among other matters, the Company’s strategy, operating performance, cash generation, profitability, brand development, expansion opportunities, digital platform and development of the KAYA and NUGL businesses.

Forward looking statements are based on management’s current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Words including “believe,” “expect,” “intend,” “plan,” “may,” “will,” “could,” “continue,” “opportunity” and similar expressions identify forward looking statements.

Investors should not place undue reliance on forward looking statements. Additional risks and uncertainties are described in NUGL’s disclosures filed with OTC Markets. The Company undertakes no obligation to update forward looking statements except as required by applicable law.

Investor and Media Contact

Leonardo Sammarco
Investor Relations
NUGL, Inc.
Tel: +1 (876) 627-9333
Email: ir@nugl.com

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