/NOT FOR DISTRIBUTION TO
Third Quarter 2022 Financial Highlights:
- Revenue was
$6,176 , an increase of$3,304 or 115%, compared to$2,872 during the same period in the prior year. - Loss and Comprehensive Loss for the three months ending
January 31, 2022 , was$1,699 , a decrease of$819 or 33% compared to a loss of$2,518 during the same period in 2021. - Adjusted EBITDA 1 of
$755 compared to ($501 ) for the three months endingJanuary 31, 2021 , an increase of$1,256 in earnings. - Cash flow used in operating activities was
$2,003 , a decrease of$871 or 30%, compared to$2,874 during the same period in 2021. - Cash flow used in investing activities was
$584 compared to$493 during the same period in 2021, an increase of$91 or 18%. - Net cash used in financing activities was
$1,321 compared to$4,874 during the same period in 2021, a decrease of$3,553 or 73%. - Shareholder's equity was a deficit of
$390 compared to$6,873 as ofApril 30, 2021 . - Cash position was
$569 as ofJanuary 31, 2022 compared to$1,835 as atApril 30, 2021 .
___________________________ |
1 Adjusted EBITDA is a non-IFRS measure used by management that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as loss and comprehensive loss from operations, as reported, before finance and transaction costs, tax, depreciation, and amortization, and adjusted for removing share-based payments, fair value adjustment on sale of inventory, fair value adjustment on biological assets and other non-cash items including impairment losses. Management believes this measure provides useful information as it is a commonly used measure in the capital markets to approximate operating performance on an adjusted basis as described above. See reconciliation of "Adjusted EBITDA (non-IFRS measure)" below. |
"Our strategic plans of cost cutting and aggressive pursuit of revenue growth with a prime focus on the veteran oriented medical market are working. This marks the second consecutive quarter where our consolidated revenue has more than doubled over the same period last year. This positive trend is driven by the continued growth of our high margin medical cannabis platform as well as strong reviews and demand for our adult-use SKUs across nine Canadian provinces," commented
Reconciliation of "Adjusted EBITDA (non-IFRS measure)" | ||||||
3 months | 3 months | |||||
2022 | 2021 | |||||
- | ||||||
Net loss and comprehensive loss for the period | $ | (1,699) | $ | (2,518) | ||
Finance and transaction costs | 1,060 | 794 | ||||
Provision for income taxes | 30 | - | ||||
Depreciation and amortization | 223 | 239 | ||||
Right-of-use assets amortization | 91 | 107 | ||||
Inventory impairment | 393 | 432 | ||||
Share–based compensation | 80 | 35 | ||||
Fair value adjustment on sale of inventory | 582 | 91 | ||||
Fair value adjustment on biological assets | (5) | 319 | ||||
$ | 2,454 | $ | 2,017 | |||
Adjusted EBITDA | $ | 755 | $ | (501) | ||
About
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, among other things, the closing of the transaction with MTL Cannabis and the receipt of all necessary regulatory and shareholder approvals associated therewith, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis and cannabis based edibles, vapes and oils legal for recreational use on
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