PICKERING,
ON, July 29, 2024 /CNW/ - MTL Cannabis Corp.
(CSE: MTLC) ("MTL" or the "Company") is pleased to report it has
filed the annual financial statements for the year ending
March 31, 2024. Complete details may
be found at www.sedarplus.ca.
Full Year Consolidated Financial Highlights
for MTL:
Income Statement:
- Revenue of $83,063,888, an
increase of $51,804,240, or 165.7%,
compared to $31,259,648 in the prior
year.
- Net Revenue of $65,293,669, an
increase of $40,723,631 or 165.7%,
compared to $24,570,038 in the prior
year.
- Gross margin before fair value adjustments of 45.6%, and
increase of 9.9%, compared to 35.7% in the prior year.
- Operating Income of $4,612,670,
an increase of $5,805,585 or 486.7%,
compared to ($1,192,915) in the prior
year.
- Net Income and Comprehensive Income of $2,449,523, an increase of $4,662,038 or 210.7%, compared to ($2,212,515) in the prior year.
- Adjusted EBITDA(1) of $13,161,130, an increase of $7,238,461 or 122.2%, compared to $5,922,669 in the prior year.
Statement of Cash Flows:
- Net cash inflows from operating activities of $13,780,880, an increase of $14,495,322, compared to ($714,442) in the prior year.
- Net cash used in investing activities of ($2,210,938), an increase of $1,263,849, compared to ($947,089) in the prior year.
- Net cash used in financing activities of ($10,655,358), an increase of $12,283,881, compared to $1,628,523 provided by financing activities in
the prior year.
- Overall net cash increased to $1,352,135, an increase of $914,584, compared to $437,551 at the beginning of the fiscal
year.
Key Business Updates:
- Retrofit Completion: As of the fiscal year ending
March 31, 2024, MTL completed the
retrofits of all three operating facilities, specifically Montréal
Cannabis Medical Inc., IsoCanMed Inc., and Abba Medix Corp. The
retrofits allow MTL to expand its consolidated estimated
cultivation capacity by up to 6,500 kg per year, bringing total
estimated cultivation capacity for the consolidated entity up to
19,500 kg per annum.
- Brand Recognition: The MTL Cannabis brand has received
recognition for performance in the Canadian recreational cannabis
space, specifically winning Brand of the Year at the 2024 Grow Up
Conference as well as being named the #1 recommended brand by
budtenders in Canada in the 2024
Canadian Budtender Survey Results conducted by the Brightfield
Group and O2O.
- Abba Medix Veteran Milestone: MTL recently achieved a
milestone with more than 3,000 veterans currently registered as
patients at Abba Medix Corp., a wholly owned subsidiary, which
focuses on medical fulfillment and distribution in the Canadian
medical cannabis sector.
- Commercialization of Export Channels: MTL successfully
completed two exports during the fiscal year, successfully
establishing a new commercial channel which allows the Company to
expand distribution globally to regulated international
jurisdictions with established medical markets, in addition to the
Canadian recreational and medical markets.
Management Commentary:
"MTL's Q4 and record full year results represent
the unwavering commitment from our team to delivering high-quality
and consistent cannabis products and services to our customers and
patients, while delivering strong results and fundamentals to our
shareholders," said Michael Perron,
CEO of MTL. "As we move forward, MTL will continue to build
on the foundation we have established and ensure that we continue
to be a be a trusted partner to the ever-growing global cannabis
industry."
Richard Clement,
Chair of the Board, commented "I am extremely proud of our team and
how we have positioned ourselves to be a leader in the industry. We
look forward to continuing to deliver for our customers, patients,
and shareholders."
Non-IFRS financial measures
In addition to results reported in accordance
with IFRS, the Company uses certain non-IFRS financial measures as
supplemental indicators of its financial and operating performance.
These non-IFRS financial measures include Adjusted EBITDA. The
Company believes these supplementary financial measures reflect the
Company's ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of trends in its
business.
The Company defines Adjusted EBITDA as income
(loss) from continuing operations, as reported, adjusted for
depreciation and amortization, financing costs, gains and losses on
sale of marketable securities, interest and accretion, share-based
payments, change in fair value of biological assets realized
through inventory sold, and unrealized gains and losses on changes
in fair value of biological assets. The Company uses Adjusted
EBITDA to assist with comparatives to other companies by
eliminating variability resulting from differences in capital
structures, management decisions related to resource allocation,
and the impact of fair value adjustments on biological assets and
inventory, which may be volatile on a period-to-period basis.
Adjusted EBITDA should not be considered alternatives to net income
(loss), cash flow from operating activities or other measures of
financial performance defined under IFRS. Adjusted EBITDA is
intended to provide a proxy for the Company's operating cash flow
and is widely used by industry analysts and investors to compare
the Company to its competitors and derive expectations of the
future financial performance of the Company.
The Company's method of calculating Adjusted
EBITDA may differ from other companies and, accordingly, they may
not be comparable to measures used by other companies.
The tables below provide a reconciliation of
Operating Income as reported under IFRS in the annual financial
statements to Adjusted EBITDA for the twelve-month period ended
March 31, 2024.
|
2024
|
2023
|
Net Income
(loss)
|
$2,449,523
|
$(2,212,515)
|
Fair value adjustments
on biological assets
|
$2,845,987
|
$6,126,189
|
Share-based
compensation
|
$61,777
|
-
|
Finance expense,
net
|
$3,490,433
|
$1,915,982
|
Amortization and
depreciation
|
$3,949,847
|
$676,016
|
Tax expense
recovery
|
($662,739)
|
($583,003)
|
Severance
|
$1,026,302
|
-
|
Adjusted
EBITDA
|
$13,161,130
|
$5,922,669
|
About MTL Cannabis Corp.
MTL Cannabis Corp. is the parent company of
Montréal Medical Cannabis Inc. ("MTL Cannabis"), a licensed
producer operating from a 57,000 sq ft licensed indoor grow
facility in Pointe Claire, Québec;
Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading
medical cannabis marketplace; IsoCanMed Inc., a licensed producer
in Louiseville, Québec growing
best-in-class indoor cannabis, in its 64,000 sq. ft. production
facility; and Canada House Clinics Inc., operating clinics across
Canada that work directly with
primary care teams to provide specialized cannabinoid therapy
services to patients suffering from simple and complex medical
conditions.
As a flower-first company built for the modern
street, MTL Cannabis uses proprietary hydroponic growing
methodologies supported by handcrafted techniques to produce
products that are truly craft for the masses. MTL Cannabis focuses
on craft quality cannabis products, including lines of dried
flower, pre-rolls and hash marketed under the "MTL Cannabis", "Low
Key by MTL" and "R'belle" brands for the Canadian market through
nine distribution arrangements with various provincial cannabis
distributors. MTL Cannabis has also developed several export
channels for bulk and unbranded GACP quality cannabis.
It is MTL's goal for Abba Medix Corp. to become
the leading distributor of medical cannabis in Canada and for Canada House Clinics to be the
leading Canadian provider of medical cannabis clinic services.
For further information, please visit
www.mtlcorp.ca/ or the Company's public filings at
www.sedarplus.ca.
Cautionary Statement Regarding Forward-Looking
Information.
This press release contains forward- looking
statements, including statements that relate to, among other
things, the Company's clinic, production and technology businesses,
its future plans, the Company's markets, objectives, goals,
strategies, intentions, beliefs, expectations and estimates, and
can generally be identified by the use of words such as
"may", "will", "could", "should", "would", "likely", "possible",
"expect", "intend", "estimate", "anticipate", "believe", "plan",
"objective" and "continue" (or the negative thereof) and
words and expressions of similar import.
Although the Company
believes that the expectations reflected in
such forward-looking statements are reasonable, such statements
involve risks and uncertainties, and undue reliance should not be
placed on such statements. Certain material factors or assumptions
are applied in making forward-looking statements, and actual
results may differ materially from those expressed or implied in
such statements. Material assumptions used to develop
forward-looking
information in this news release
include, the regulations related to cannabis
use under the Cannabis Act (Canada); Company liquidity and capital
resources, including the availability of additional capital
resources to fund its activities and repay its outstanding
indebtedness; level
of competition; the ability to adapt products
and services to the changing
market; the ability to attract and retain key
executives; the ability to execute strategic plans; continued
integration of business unit, expansion activities at all our
operating locations; and the leveraging of cash flow from
operations to accelerate growth and further improve the Company's
balance sheet. Additional information about material factors that
could cause actual results to differ materially from expectations
and about material factors or assumptions applied in making
forward-looking statements may be found in the Company's Listing
Statement dated August 14, 2023 and
its most recent annual and interim Management's Discussion and
Analysis under "Risk and Uncertainties" as well as in
other public disclosure documents filed with Canadian securities regulatory authorities. The Company does
not undertake any obligation to update publicly or to revise any of
the forward-looking statements contained in this document, whether
as a result of new information, future events or otherwise, except
as required by law.
Neither the Canadian Securities Exchange (the
"CSE") nor its Regulation Services Provider (as that term is
defined in the policies of the CSE) accepts responsibility for the
adequacy or accuracy of this release.
(1) See "Non-IFRS financial measures" section for
reconciliation of Adjusted EBITDA.
SOURCE MTL Cannabis Corp.