Mettrum Health Corp.

Mettrum Health Corp.

June 25, 2015 08:00 ET

Mettrum Announces Fourth Quarter and Full Fiscal Year 2015 Financial Results

Current Registered Client Count Increased to 3,000

Fiscal 2015 Financial Highlights:

- Revenues for the first full year of operations totaled $3,058,711

- Grams sold for the first full year of operations totaled 418,372 grams

- Gross Margin at 42.4 percent

Q4 2015 versus Q3 2015 Financial Highlights:

- Revenues increase approximately 23 percent to $847,690

- Grams sold increase by 22 percent to 115,065 grams

- Gross Margin at 60.5 percent

TORONTO, ONTARIO--(Marketwired - June 25, 2015) - Mettrum Health Corp. ("Mettrum" or the "Company") (TSX VENTURE:MT)(TSX VENTURE:MT.WT), a vertically integrated agri-pharmaceutical company focused on research, development, production and distribution of Health Canada licensed cannabis products, announced today its fourth quarter and full year financial results for the period ended March 31, 2015.

For the year ended March 31, 2015, Mettrum revenues increased to $3,058,711 on 418,372 grams of medical cannabis sold. Average selling price per gram increased to $7.32 from $7.02 in the prior year. For the full year, gross profit also significantly increased to $1,297,567 or 42.4 percent of revenues. Loss from operations, net loss and loss per share amounted to $6,211,247, $7,035,936 and $0.27 per share, respectively, which are attributed to the continued growth of the business. These amounts include the related costs for completing a reverse merger with a capital pool corporation to become a public company.

For the three-month period ended March 31, 2015, Mettrum's revenues increased by 22% percent to $847,690 on 115,065 grams of medical cannabis sold over the quarter ended December 31, 2014. Average price per gram for the quarter increased to $7.53, versus $7.25 during quarter ended December 31, 2014. During the fourth quarter, gross profit more than doubled to $513,352 or 60.5 percent of revenues as the Company continued its efforts towards further operational efficiencies.

For the three-month period ended March 31, 2015, loss from operations, net loss and loss per share amounted to $1,850,059, $1,795,416 and $0.05 per share, respectively, which are attributed to the continued growth of the business.

Figures in CDN $ For the three
months ended
Mar 31, 2015
For the three
months ended
Dec 31, 2014
For the
year ended
Mar 31, 2015
For the
year ended
Mar 31, 2014
Grams sold 115,065 94,695 418,372 23,873
Revenue 847,690 689,478 3,058,711 170,349
Gross margin 513,352 237,588 1,297,567 252,946
Operating expenses 2,363,411 1,613,427 7,508,814 1,000,231
EBITDA (1,521,814 ) (1,168,349 ) (5,471,788 ) (683,174 )
Loss from operations (1,850,059 ) (1,375,839 ) (6,211,247 ) (747,285 )
Net loss (1,795,416 ) (1,233,565 ) (7,035,936 ) (830,314 )
Net loss per share basic and diluted (0.05 ) (0.04 ) (0.27 ) (0.07 )

As at June 23, 2015, the Company has increased registered clients to 3,000 and management maintains its ongoing commitment to further growth in clients through maintaining product quality, customer service, support and tools to assist both clients and physicians when considering Mettrum as a leading producer and distributor of medical cannabis.

As at March 31, 2015, the Company maintained a solid balance sheet with a net cash position of approximately $21 million.

"I am very pleased with our progress and financial performance during the fourth quarter, and particularly excited with Mettrum Creemore being awarded its Health Canada license. Our sales and marketing team's ability to quickly respond and focus their efforts on growing the Company's client base is evidenced by our current registrations of 3,000 clients," commented Michael Haines, CEO of the Company. "Our objective from the early days was to be the industry leader. With our operational and financial performance to date, coupled with our level of confidence in the near, mid and long term, I am optimistic with our prospects as we report our progress during the course of what is shaping to be a great start to our new fiscal year."

Mettrum is pleased that the license at its Mettrum Creemore facility has been renewed effective June 11, 2015. In addition, Mettrum Creemore is scheduled to have Health Canada return later this month to inspect the rest of the facility including 33 more grow rooms. Mettrum Creemore currently has 13 grow rooms licensed to grow medical cannabis.

Mettrum completed its acquisition of Oilseed Works Inc. ("OWI") currently operating as Hempola on April 30, 2015. The acquisition, and the 20 years of experience OWI brings to the organization, provides Mettrum with immediate access to the industrial cannabis and functional foods market. It solidifies Mettrum as the leading multi-faceted provider of Health Canada licensed cannabis products.

About Mettrum Health Corp.

Mettrum Health Corp. is Tier 1 Industry Issuer listed on TSX Venture Exchange. Mettrum Ltd., a wholly owned subsidiary of the Company, is a Toronto-based company and a licensed producer of medical cannabis under the Marihuana for Medical Purposes Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada) (the "MMPR"), which came into effect on October 1, 2013. Mettrum received its first license from Health Canada under the MMPR on November 1, 2013 and began production of medical cannabis at its first production facility in Bowmanville, Ontario. Mettrum received its second license from Health Canada under the MMPR on December 11, 2014 for its other wholly-owned subsidiary, Agripharm Corp., at Mettrum Creemore facility in Clearview, Ontario. With the Company's two licenses, Mettrum is a leading producer and vendor of medical cannabis under the MMPR system.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. 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; delay or failure to receive board, shareholder or regulatory approvals; and the results of operations. 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 forward-looking statements. The Company and Mettrum disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this Press release.

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