/NOT FOR DISTRIBUTION TO
Achieves Record Revenue, Positive Cash Flow and Operating Profit for
Third Quarter 2023 Financial Highlights:
(Unless otherwise stated, all results are in thousands of Canadian dollars)
- Profit and comprehensive profit of
$756 , an improvement of$2,902 , compared to loss and comprehensive loss of$2,146 in the same quarter of last year. - Adjusted EBITDA of
$3,031 , an improvement of$2,784 or 1,127%, compared with$247 for the three months endedApril 30, 2022 (See reconciliation of "Adjusted EBITDA (non-IFRS measure)" below). - Net revenue of
$9,345 , an increase of$3,848 or 70%, compared to$5,497 in the same period in the prior year. - Cash flow provided by operating activities in nine months ending
April 30, 2023 was$1,461 , an improvement of$3,105 compared to$1,644 used in the operating activities during the same period prior year. - Net cash used in investing activities in nine months ending
April 30, 2023 was$626 , an increase of$651 compared to$25 used in investing activities during the same period in 2022. - Net cash used in financing activities in nine months ended
April 30, 2023 was$774 , compared to$1,636 provided by financing activities during the same period in 2022. - Shareholder's equity was a surplus of
$431 compared to an equity deficit of$3,753 as ofJuly 31, 2022 .
Reconciliation of "Adjusted EBITDA (non-IFRS measure)" | ||||
3 months | 3 months | |||
2023 | 2022 | |||
Net profit (loss) and comprehensive profit (loss) for the period | $ 756 | $ (2,146) | ||
Finance costs | 1,471 | 810 | ||
Change in fair value of financial instruments | (204) | |||
Share of income from investment in associates | 540 | - | ||
Provision for income taxes | (50) | (90) | ||
Depreciation and amortization | 462 | 263 | ||
Right-of-use assets amortization | 116 | 90 | ||
Inventory impairment | - | 1,259 | ||
Loss on debt settlement and modifications | - | (75) | ||
Loss on assets disposal | 20 | - | ||
Share‑based compensation | - | 53 | ||
Realized loss on sale of inventory | 1,137 | (5) | ||
Unrealized loss on biological assets | (1,217) | 88 | ||
$ 2,275 | $ 2,393 | |||
Adjusted EBITDA | $ 3,031 | $ 247 | ||
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"I am excited to report that Canada House has delivered a second consecutive quarterly net profit while achieving record revenue, positive cash flow and operating profit for a third successive quarter. We continue to sell to MTL Cannabis 100% of the high quality low cost flower produced from our retrofitted IsoCanMed cultivation facility. Our veteran oriented medical business across our clinics and Abba Medix continues to grow with Abba Medix currently exceeding
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 Montreal 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
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
SOURCE
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