MTL Cannabis Corp. Reports Third Quarter Results with $22.4 Million of Revenue and Continued Positive Operating Income and Cash Flows

PICKERING, ON, Feb. 29, 2024 /CNW/ - MTL Cannabis Corp. (CSE: MTLC) ("MTL" or the "Company") is pleased to report it has filed the financial statements as at and for the three-month and nine-month periods ending December 31, 2023, and 2022. Complete details may be found at www.sedarplus.ca.

Third Quarter 2023 Consolidated Financial Highlights for MTL:

Income Statement:

• Revenue of $22,395,199, an improvement of $13,699,958, or 158%, compared to $8,695,241 in the same quarter of last year.
• Net Revenue of $19,331,624, an improvement of $12,608,804, compared to $6,722,820 in the same quarter of last year.
• Gross Profit of $8,994,030, an improvement of $6,688,626, compared to $2,305,404 in the same quarter of last year.
• Operating Income of $1,876,890, an improvement of $3,507,951, compared to ($1,631,061) in the same quarter of last year.
• Net Income and Comprehensive Loss of ($248,286), an improvement of $1,493,190, compared to ($1,741,476) in the same quarter of last year.

Statement of Cash Flows:

• Net cash inflows from operating activities of $10,076,585, compared to ($1,023,979) in the same period of last year.
• Net cash used in investing activities of ($1,769,216), compared to ($975,204) in the same period of last year.
• Net cash used in financing activities of ($7,690,329), compared to $2,508,372 in the same period of last year.
• Overall net cash increased to $1,054,591, an improvement of $617,040, from $437,551 at the beginning of the period.

Year to Date Highlights (9 months):

• Revenue of $62,405,421, an improvement of $41,872,376, or 204%, compared to $20,533,045 in the same period of last year.
• Gross Profit of $18,565,107, an improvement of $12,338,457, compared to $6,226,650 in the same period of last year.
• Operating Income of $3,319,848, an improvement of $4,235,902, compared to ($916,054) in the same period of last year.
• Net Income and Comprehensive Income of $1,558,005, an improvement of $3,438,516, compared to ($1,880,511) in the same period of last year.

Management Commentary:

"I could not be more proud of our team for their relentless passion, focus, and discipline as we continue to integrate our operations and grow the business" commented Michael Perron, CEO of MTL. "We are incredibly excited to continue to build and expand our business, always striving to be the industry leader with respect to providing the highest quality products and services for all of customers, patients, and the partners who support us."

Richard Clement, Chair of the Board, commented "This is such an exciting time for our company. We are starting to see the results from the incredible efforts of our team over the past two years and couldn't be happier to deliver continued results to shareholders. We look forward to building on the foundation we have set and continuing to deliver on our promise of quality and consistency to consumers and shareholders alike."

MTL is the parent company of  Montréal Medical Cannabis Inc. ("MTL Cannabis"), a licensed producer operating from a 57,000 sq ft licensed indoor grow facility in Pointe Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions.

As a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly craft for the masses. MTL Cannabis focuses on craft quality cannabis products, including lines of dried flower, pre-rolls and hash marketed under the "MTL Cannabis", "Low Key by MTL" and "R'belle" brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. MTL Cannabis has also developed several export channels for bulk and unbranded GACP quality cannabis.

It is MTL's goal for Abba Medix Corp. to become the leading distributor of medical cannabis in Canada and for Canada House Clinics to be the leading Canadian provider of medical cannabis clinic services.

For further information, please visit www.mtlcorp.ca/ or the Company's public filings at www.sedarplus.ca.

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, the regulations related to cannabis use under the Cannabis Act (Canada); Company liquidity and capital resources, including the availability of additional capital resources to fund its activities and repay its outstanding indebtedness; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; the ability to execute strategic plans; continued integration of business unit, expansion activities at all our operating locations; and the leveraging of cash flow from operations to accelerate growth and further improve the Company's balance sheet. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's Listing Statement dated August 14, 2023 and its most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties" as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

Neither the Canadian Securities Exchange (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 MTL Cannabis Corp.