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MMJ Group Holdings welcomes MediPharm Labs Corp’s 2019 financial results

Revenue was C$43.4 million, a 38% increase over Q2 2019, as the company expanded its leadership of the Canadian cannabis extraction industry.

MMJ Group Holdings Ltd - MMJ Group Holdings welcomes MediPharm Labs Corp’s 2019 financial results
The company’s balance sheet and financial capacity to support growth remained strong

MMJ Group Holdings Ltd (ASX:MMJ) has welcomed the latest quarterly financial results for its investment MediPharm Labs Corp (TSX:LABS), which posted strong growth in revenue, adjusted EBITDA and net income.

Revenue for the nine months ending September 30, 2019, was C$96.8 million, gross profit was C$32.9 million, adjusted EBITDA C$22.1 million and net income before tax was C$9.2 million.

On-track for $100 million milestone

Chief executive officer and chairman Pat McCutcheon said: “We are on track to surpass the C$100-million milestone in revenue this year, which is a remarkable testament to the tireless efforts of the skilled professionals at MediPharm Labs.

“With the completion of the roll-out of our initial white label products insight, and as the regulated retail distribution system starts to hit stride, we can seize the opportunities that Cannabis 2.0 brings beginning next year.”

On October 10, subsequent to quarter-end, the company closed a credit agreement with top five Canadian Schedule I bank, Scotiabank, for C$38.7 million.

The credit facility was upsized from the previously committed term sheet and comprises a revolving term facility, a non-revolving term facility and a non-revolving delayed draw term facility.

With this larger facility and proceeds from the bought deal equity offering, the company has strengthened its balance sheet and enhanced its financial flexibility.

Quick facts: MMJ Group Holdings Ltd

Price: 0.097 AUD

Market: ASX
Market Cap: $22.31 m

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