TORONTO, ONTARIO -- (Marketwired) -- 11/11/15 -- Mettrum Health Corp. ("Mettrum" or the "Company") (TSX VENTURE: MT), a vertically integrated health and wellness company focused on research, development, production and distribution of cannabis products, announced today its second quarter fiscal 2016 financial results for the period ended September 30, 2015.
For the second quarter ended September 30, 2015, Mettrum revenues increased 36 percent to $1,711,072 primarily on 211,730 grams of medical cannabis sold, versus $1,249,171 on 160,560 grams of medical cannabis sold the previous quarter. Average selling price per gram increased to $7.72 from $7.45 in the prior quarter. Gross margin also increased by 42 percent to $971,237, from $686,124 during the previous quarter. On a per gram basis the gross margins increased to $4.49 per gram for the quarter ended September 30, 2015 versus $4.20 per gram for the quarter ended June 30, 2015. EBITDA loss, Loss from operations, net loss and loss per share amounted to $1,622,121, $2,081,362, $2,083,072 and $0.06 per share, respectively.
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Figures in CDN $ For the three For the three
months ended For the three months ended
September 30, months ended September 30,
2015 June 30, 2015 2014
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Grams sold 211,730 160,560 108,285
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Revenue 1,711,072 1,249,171 806,412
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Gross margin 971,237 686,124 255,922
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Operating expenses 3,054,309 2,642,491 2,076,083
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EBITDA (1,622,121) (1,611,861) (1,680,304)
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Loss from operations (2,081,362) (1,956,367) (1,820,161)
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Net loss (2,083,072) (1,913,948) (2,786,530)
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Net loss per share basic and
diluted (0.06) (0.06) (0.14)
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As at September 30, 2015, the Company maintained a solid balance sheet with a net cash position of approximately $11.3 million.
Financial and Operational Highlights
-- Current Active clients of 4,590.
-- Repaid the mortgage, on its second Bowmanville facility, of
approximately $2 million
-- Launch of Mettrum Originals product line in September
-- Mettrum Creemore is now fully operational with 45 rooms in production
"Our products and marketing platforms continue to grow revenues as well as our overall customer base," noted Michael Haines, CEO of Mettrum. "Taking a long term view, we continued to invest in our facilities to improve quality, yields and margins. We expect to see the results of these investments manifest throughout the balance of our fiscal year and beyond. We are excited about the significant growth across our entire business, including the recently launched Mettrum Originals hemp food line. We look forward to further accelerating our growth and reporting our successes to our stakeholders in the coming quarters."
About Mettrum Health Corp.
Mettrum Health Corp. is 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 Marihuana for Medical Purposes Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada) (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 other wholly-owned subsidiary, Agripharm Corp., at Mettrum Creemore facility in Clearview, Ontario. With the Company's two licenses, Mettrum is a leading producer and vendor of medical cannabis under the MMPR system.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the results of operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company and Mettrum disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.
Contacts:
Mettrum Health Corp.
Ali Mahdavi
Director, Investor Relations
416.962.3300
amahdavi@mettrum.com
Keelan Green
Media Relations
(613) 220-2016
green@prospectusassociates.com
