TORONTO, April 03, 2019 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSXV: LABS) (OTCQB: MLCPF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, is pleased to announce fourth quarter and full year financial results for the year ended December 31, 2018. The audited consolidated financial statements and management's discussion and analysis for the periods are available on SEDAR.
Fourth Quarter 2018 Highlights
Full Year 2018 Highlights
“2018 was a breakthrough year for MediPharm Labs. We became the first fully Licensed Producer to specialize solely in extraction and quickly scaled operations to emerge as the dominant market leader in the manufacturing of high quality, pharmaceutical-like production of cannabis derivative products – the future of cannabis,” said Patrick McCutcheon, Chief Executive Officer.
“As leading extraction specialists, we demonstrated our ability to rapidly expand our footprint and achieve significant revenue and positive operating cash flow just weeks after receiving our sales License, and our strong operations have continued into 2019. The strength of this performance validates our uniquely focused strategy and investments. We are proud that the MediPharm Labs team stands out among the top global players in the cannabis industry producing tangible results with significant future potential.”
2018 Key Financial Measures | |||||||
Three months ended | Year ended | ||||||
December 31, | December 31, | ||||||
2018 | 2017 | 2018 | 2017 | ||||
$(000’s) | $(000’s) | $(000’s) | $(000’s) | ||||
Revenues | 10,198 | - | 10,198 | - | |||
Gross profit | 3,967 | - | 3,967 | - | |||
Gross margin % | 39% | - | 39% | - | |||
Net loss | (3,542) | (742) | (8,466) | (995) | |||
Adjusted EBITDA(1) | 2,129 | (695) | (875) | (948) | |||
Adjusted EBITDA(1) margin % | 21% | - | (9%) | - | |||
2019 Year-to-Date Highlights
Mr. McCutcheon continued, “Looking ahead, we are now working on an ambitious, well-planned agenda for 2019 that will enable MediPharm Labs to extend our first-mover advantage. We are ramping up production, adding capacity, targeting EU GMP certification, expanding product offerings, developing R&D and IP, signing new sales agreements, and executing on our M&A and international growth pipeline.”
“Most importantly, we see all of this as a starting point. We expect to accelerate our growth globally as the size of our addressable market increases and we strengthen our foothold domestically with the expected legalization of vapeables, edibles, beverages and topicals providing a strong growth trajectory in Canada. We will continue to capitalize on the numerous opportunities available to us through effective capital deployment and continued expert execution to create shareholder value for the long term.”
2019 Strategic Priorities
2018 Financial Highlights
All dollar amounts are expressed in Canadian dollars unless otherwise stated.
Three months ended | Year ended | |||||||
December 31, | December 31, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
$(000’s) | $(000’s) | $(000’s) | $(000’s) | |||||
Revenue | 10,198 | - | 10,198 | - | ||||
Cost of sales | (6,231 | ) | - | (6,231 | ) | - | ||
Gross profit | 3,967 | - | 3,967 | - | ||||
General administrative expenses | (1,749 | ) | (694 | ) | (3,556 | ) | (947 | ) |
Marketing and selling expenses | (597 | ) | - | (1,272 | ) | - | ||
Share-based compensation expense | (738 | ) | - | (1,965 | ) | - | ||
Transaction fee | (4,230 | ) | - | (4,230 | ) | - | ||
Other operating expenses | (19 | ) | (1 | ) | (996 | ) | (1 | ) |
Operating loss | (3,366 | ) | (695 | ) | (8,052 | ) | (948 | ) |
Finance income | 22 | 16 | 64 | 16 | ||||
Finance expense | (198 | ) | (63 | ) | (478 | ) | (63 | ) |
Net loss for the year | (3,542 | ) | (742 | ) | (8,466 | ) | (995 | ) |
Operating loss – as reported | (3,366 | ) | (695 | ) | (8,052 | ) | (948 | ) |
Add: | ||||||||
Share-based compensation expense | 738 | - | 1,965 | - | ||||
Transaction fee | 4,230 | - | 4,230 | - | ||||
Depreciation | 528 | - | 982 | - | ||||
Adjusted EBITDA(1) | 2,129 | (695 | ) | (875 | ) | (948 | ) |
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license. This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-like cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the Company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.
Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.
For further information, please contact:
Laura Lepore, Vice President, Investor Relations & Communications
Telephone: 705-719-7425 ext 216
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, expectations for expanding product offerings, development of R&D and IP, signing new sales and supply agreements, expanding white-label solutions platform, increasing production capacity, expanding merger and acquisition and international growth pipeline, expanding secondary extraction capabilities, GMP certification and the completion of Australian facility and establishment of operations in Australia. 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; the inability of MediPharm Labs to obtain adequate financing; and the delay or failure to receive regulatory approvals. 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 the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.