Mettrum Health Corp. (TSXV:MT.V), a vertically integrated provider of cannabis products, announced today its third quarter fiscal 2016 financial results for the period ended December 31, 2015.
As quoted in the press release:
Q3 2016 versus Q2 Financial Highlights:
- Revenue increased 18% to $2,016,683
- Gross Margin increased 39% to $1,351,287 (67% of Sales)
- Reduced growing costs by 20% to $2.55 per gram
For the third quarter ended December 31, 2015, Mettrum revenues increased 18 percent to $2,016,683 versus $1,711,072 during the previous quarter. Average selling price per gram increased to $7.90 from $7.74 in the prior quarter. Gross margin increased by 39 percent to $1,351,287 or 67%, from $971,237 or 57% during the previous quarter. Mettrum reduced growing costs by 20% to $2.55 per gram for the quarter ended December 31, 2015 from $3.17 for the quarter ended September 30, 2015. EBITDA improved by 18% to a loss of $1,337,989 for the quarter ended December 31, 2015 versus a loss of $1,622,121 for the quarter ended September 30, 2015.
- As of February 23, 2016 Mettrum has over 6,100 Active Registrations
- Receives Production License for 3rd facility – 60,000 sq. ft. on 7 acres of Mettrum Owned Property
- Received License to produce and sell cannabis extracts
- Positive impact on cost per gram from first harvest at Mettrum Creemore’s upgraded facility
- Mettrum Originals began U.S. distribution in December
During the quarter, Mettrum received a license for its production facility in Bowmanville, Ontario. The facility, Mettrum’s third and largest, is 60,000 sq. ft. including a 6,000 sq. ft. vault. Mettrum now has a total of approximately 90,000 sq. ft. of indoor production capacity that, on a fully built out basis, would generate about 12,000 kgs per year of dried cannabis, enough production to service approximately 45,000 clients based on current industry consumption rates. Mettrum’s combined licensed production area can produce approximately 6,000 kgs per year. It is currently licensed to produce 3,500 kgs per year, enough to supply over 13,000 clients. As Mettrum continues to grow its client base and more product is required, it will seek to amend its licenses accordingly to utilize existing production capacity.
Mettrum CEO, Michael Haines, stated:
Client acquisition, and subsequently sales, were constrained for the majority of Q3 due to product availability. In December, we began to see the benefits of our expansion and production upgrades from our Creemore facility. Our inventory and availability of products throughout the Mettrum Spectrum have allowed us to accept more clients than ever before. As a result, we’ve seen a 20% increase in the total number of registered clients so far in Q4.
With three production facilities licensed to grow, along with our authorization to sell medical cannabis oils, we are able to meet the demands of our growing client base. The capital we’ve invested, and process improvements we’ve implemented, during the recent quarters will continue to drive down production costs while maintaining quality and consistency and increasing availability. We are now better positioned than ever to accelerate sales in the coming quarters and achieve profitability, highlighted by our improved operating results during the reported quarter.