Medreleaf Corp. (fka MEDFF)

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MedReleaf Reports Third Quarter Fiscal 2018 Results MEDFF


MARKHAM, ON, Feb. 13, 2018 /CNW/ - MedReleaf Corp. (TSX: LEAF) ("MedReleaf" or the "Company"), Canada's first and only ISO 9001 and ICH-GMP certified cannabis producer, today announced financial and operating results for the third quarter fiscal 2018 ending December 31, 2017. All amounts expressed are in Canadian dollars unless otherwise noted.


"In the third quarter, we set new records for total sales and grams sold demonstrating the strength of our underlying business while we continue to make investments in preparation for the recreational market and for international expansion," said Neil Closner, CEO of MedReleaf. "These investments are starting to bear fruit and we now have boots on the ground in six different countries working on various initiatives – both for cultivation and export. We also launched our first adult recreational-use brand, San Rafael '71, which is getting good reception from the various Provincial purchase authorities. With a strong balance sheet bolstered by $192.5 million in equity capital raised since last December, we have a clear opportunity to establish MedReleaf as a global leader in the cannabis industry."

Third Quarter Fiscal 2018 Financial Highlights
•Record sales of $11.4 million, an increase of 9% from the prior year period, and a 16% increase from the second quarter of fiscal 2018.
•Sold a record 1,263 kilograms of cannabis products, an increase of 27% from the prior year period and a 20% increase from the second quarter of fiscal 2018.
•Sales of cannabis-based extract products were $2.3 million, or 21% of total sales.
•Adjusted EBITDA loss of $0.2 million, a decrease of $4.3 million from the prior year period due to discounts offered to qualifying Veterans as a result of the Veterans Affairs Canada (VAC) reimbursement policy change, overhead costs associated with the Bradford Facility construction, and operating investments towards future growth.
•Average selling price per gram of $8.98, a decrease from $10.50 for the prior year period due to the reduction in VAC reimbursement pricing.
•Cash cost per gram sold of $1.83, an increase from $1.55 for the prior year period primarily due to increased plant operating costs and fixed overhead attributable to the Bradford Facility. Cash cost per total gram sold is expected to improve as greater efficiencies of scale are realized when construction of the Bradford Facility is fully completed.
•Adjusted product contribution margin per gram sold of $5.80, a decrease from $8.65 for the prior year period.

Third Quarter Fiscal 2018 Business Highlights
•On November 14, 2017, MedReleaf's Australian join venture partner, Indica Industries Pty Ltd. (t/a "MedReleaf Australia"), was granted a licence from the Australian Government Office of Drug Control ("ODC") for the cultivation and production of medical cannabis.
•On November 30, 2017, MedReleaf won 10 awards at the 2017 Lift Canadian Cannabis Awards including Top Licensed Producer and first place product awards for: Top Indica Flower, Top High CBD Flower, Top High THC Flower, and Top High CBD Oil.
•On December 4, 2017, the Company closed a bought deal equity financing for gross proceeds of approximately $60.0 million.
•On December 21, 2017, the Company announced an agreement to become a medical cannabis supplier to Shoppers Drug Mart.



https://www.newswire.ca/news-releases/medreleaf-reports-third-quarter-fiscal-2018-results-673897783.html