Mettrum Announces Fourth Quarter and Full Fiscal Year 2016 Financial Results
TORONTO, ONTARIO–(Marketwired – June 29, 2016) –
Q4 2016 versus Q3 Financial Highlights:
- Revenues increased 35% to $2,714,468
- Grams sold increased 32% to 305,950 grams
- Gross Margin increased 47% to $1,993,109
- Adjusted EDITDA loss improved by 38% to a loss of $823,066
- Registered clients increased by 44% to 7,200 (as at June 29, 2016 – 12,000, a 67% increase since March 31, 2016)
Mettrum Health Corp. (“Mettrum” or the “Company”) (TSXV: MT) (OTC: MQTRF), a fully integrated provider of cannabis products, announced today its fourth quarter and full fiscal year 2016 financial results for the period ended March 31, 2016.
- Mettrum is currently licensed to produce and sell dried cannabis and cannabis extracts from each of its three facilities which, on a combined basis, are approximately 90,000 square feet.
- Mettrum is currently licensed to produce 3,550 kgs of dried cannabis annually and has current available production capacity of up to 6,000 kgs annually.
- On a fully built out basis, which is expected by the end of the year, Mettrum’s, total production capacity will increase to up to 12,000 kgs annually
- Mettrum Originals entered into a three-year partnership with Live Nation to name Toronto’s Molson Canadian Amphitheatre’s grass seating area “The Mettrum Originals Lawn”, and including the right to sample and sell Mettrum Originals’ products at the venue.
- Mettrum Originals products are now sold at over 2,000 retailers in Canada and the United States.
- Mettrum has entered into a supply and services agreement with Agriculture Victoria (Department of Economic Development, Jobs, Transport and Resources), on behalf of the Victorian Government in Australia. Mettrum has received an export permit from Health Canada to export starter material and has subsequently shipped that material and will provide advisory and consulting services to Agriculture Victoria. This arrangement is for the cannabis horticultural research trial being undertaken by Agriculture Victoria.
Fourth Quarter ended March 31, 2016 Review
- Revenues increased 35% to $2,714,468 versus $2,016,863 during the third quarter ended December 31, 2015.
- Average selling price per gram increased to $8.23 during the fourth quarter ended March 31, 2016 from $7.90 during the third quarter ended December 31, 2015.
- Gross margin increased by 47% to $1,993,109 or 73% of sales, from $1,351,286 or 67% of sales during the third fourth quarter.
- Growing costs were reduced by 2% to $2.49 per gram for the quarter ended March 31, 2016 from $2.55 for the third quarter ended December 31, 2015.
- Adjusted EBITDA loss significantly improved by 38% to a loss of $823,066 for the quarter ended March 31, 2016 versus a loss of $1,337,989 for the third quarter ended December 31, 2015.
- As at March 31, 2016, Mettrum’s registered client count increased to 7,200, representing a 44% increase over December 31, 2015. As at the date of this report, Mettrum is serving the needs of approximately 12,000 registered clients, representing a 67% increase in customer registration from March 31, 2016 to date.
Fiscal Year ended March 31, 2016 Review
- Revenues increased 151% to $7,691,574 versus $3,058,711 during the previous year.
- Average selling price per gram increased to $7.87 from $7.31 during fiscal 2016.
- Gross margin increased by 285% to $5,001,756 or 65% or sales, from $1,297,567 or 42 % of sales during fiscal 2016.
- Adjusted EBITDA loss amounted to a loss of $5,395,037 for the full year ended March 31, 2016 versus a loss of $5,374,657 in fiscal 2015.
As at March 31, 2016, the Company maintained a solid balance sheet with a net cash position of approximately $7.1 million. Subsequently, Mettrum completed a financing on May 10, 2016 for $7.8 million of net proceeds.
I am very pleased with our performance over the past year. The final quarter capped off a year of continuously improving growth in revenue and operating margins. We’re looking forward to further success during the coming year. Fiscal 2017 is off to a strong start. With all three of our facilities licensed for production and sale of dried cannabis and cannabis extracts, we will continue to grow the business and achieve cash flow break even while maintaining market share.
Michael Haines, CEO of Mettrum
Mettrum will continue to build upon our physician centric medical business and due to our current and future production capacity, and operational expertise, the company is exceptionally well positioned to be a major player when the recreational market opens up in Canada. It is our goal to launch our first retail oriented products within the year.
About Mettrum Health Corp.
Mettrum Health Corp. is a Tier 1 Industry Issuer listed on TSX Venture Exchange. Mettrum Ltd., a wholly owned subsidiary of the Company, is a Toronto-based company and a licensed producer of medical cannabis under the MMPR, which came into effect on October 1, 2013. Mettrum received its first license from Health Canada under the MMPR on November 1, 2013 and began production of medical cannabis at its first production facility in Bowmanville, Ontario. Mettrum received its second license from Health Canada under the MMPR on December 11, 2014 for its Mettrum Creemore facility in Clearview, Ontario. Mettrum received its third license from Health Canada under the MMPR on December 17, 2015 for its new 60,000 square foot production and distribution facility in Bowmanville, Ontario. With the Company’s three licenses, Mettrum is a leading producer and vendor of medical cannabis under the MMPR system. In addition, through its wholly owned subsidiary Mettrum Hempworks, Mettrum also is a licensed producer and distribution of industrial cannabis (hemp) products, including Mettrum’s functional food line, Mettrum Originals, under the Industrial Hemp Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada). For more information, visit: www.mettrumoriginals.com and www.mettrum.com