Mettrum Announces First Quarter 2017 Financial Results
TORONTO, ONTARIO, Aug 22, 2016 (Marketwired via COMTEX) — TORONTO, ONTARIO–(Marketwired – Aug 22, 2016) –
Q1 2017 versus Q4 2016 Financial Highlights:
- Revenues increased 54% to $4,170,514
- Grams sold increased 43% to 436,570 grams
- Gross profit increased 67% to $3,320,828
- Adjusted EDITDA loss improved by 58% to a loss of $346,280
- Registered clients increased by 67% to 12,000
Mettrum Health Corp. (“Mettrum” or the “Company”) (MT), a fully integrated provider of cannabis products, announced today its first quarter 2017 financial results for the period ended June 30, 2016.
Note (1) Adjusted EBITDA is defined as earnings before interest, depreciation, amortization, share-based compensation and income taxes.
- On August 8, 2016, Mettrum announced that it had entered into a “bought deal” share offering agreement with a syndicate of underwriters to issue 5,661,000 shares at a price of $2.65 per common share, for aggregate gross proceeds of $15,001,650.
- In June 2016, the Company received an export permit from Health Canada to export a limited amount of starter material pursuant to an agreement the Company entered into with Agriculture Victoria (Department of Economic Development, Jobs, Transport and Resources), on behalf of the Victorian Government in Australia. Pursuant to the agreement, the Company also agreed to provide advisory and consulting services to Agriculture Victoria State Government in its development of a medicinal cannabis regime. This arrangement is for the cannabis horticultural research trial being undertaken by Agriculture Victoria.
- On May 10, 2016, Mettrum completed a syndicated “bought deal’ share offering which resulted in the issuance of 5,750,000 shares at a price of $1.50 per common share, for aggregate gross proceeds of $8,625,000.
- On May 9, 2016, Mettrum Ltd. Announced that the Company was in receipt of an amended license from Health Canada for the sale of dried medical cannabis as well as cannabis extracts at its Bennett Road South facility.
First Quarter ended June 30, 2016 Review
- Revenues increased 54% to $4,170,514 versus $2,714,468 during the fourth quarter ended March 31, 2016.
- Average selling price per gram increased to $8.88 during the first quarter ended June 30, 2016 from $8.23 during the fourth quarter ended March 31, 2016.
- Gross profit increased by 67% to $3,320,828 or 80% of sales, from $1,993,109 or 73% of sales during the fourth quarter of fiscal 2016.
- Cash growing costs were reduced to $2.00 per gram for the quarter ended June 30, 2016 from $2.49 for the fourth quarter ended March 31, 2016.
- Adjusted EBITDA loss significantly improved by 58% to a loss of $346,280 for the quarter ended June 30, 2016 versus a loss of $823,066 for the fourth quarter ended March 31, 2016.
- As at June 30, 2016, Mettrum’s registered client count increased to 12,100 registered clients, representing a 67% increase in customer registration. Client count at August 22, 2016 is 13,300.
- Balance sheet remains solid with a $12.1 million net cash position, excluding the impact of the “bought deal” offering announced on August 8, 2016, which further strengthens the Company’s cash position.
To view graphs associated with this release, visit the following link: http://media3.marketwire.com/docs/MettrumGraphs.pdf
We are off to a very strong start in the year with all of our key operational and financial metrics continuing to move in the right direction.
Michael Haines, CEO of Mettrum
The combination of the momentum in our business driven by a rapidly growing client base, superior products and financial strength has Mettrum extremely well positioned for a great year ahead as we maintain our focus on growth, profitability and ultimately, delivering shareholder value.
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