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CanniMed Therapeutics Inc. (TSX: CMED)(CMMDF) today released its financial results for the three and nine months ended July 31, 2017.
Highlights
Sales of $4.8 million in the quarter were 80 per cent higher than in the comparable period of the prior year and were 29 per cent higher than the second quarter of 2017. Year-to-date sales of $11.9 million were 79 per cent higher than the first nine months of the prior year and have surpassed full year fiscal 2016 sales.
Concentrated cannabis oils sales revenues were approximately 57 per cent of total revenues for the current quarter.
Higher sales revenues were driven by rising demand, as dried equivalent medical cannabis sales in the third quarter increased 82 per cent from the comparable period in 2016 to 463 kg, at an average selling price of $9.89 per gram equivalent (sales of 1,177 kg at an average selling price of $9.68 per gram equivalent were 79 per cent higher than in the first nine months of 2016 and 24 per cent higher than full year 2016).
Adjusted EBITDA from continuing operations was $(0.3) million for the quarter ($(0.1) million for the year to date).
Net loss of $1.4 million for the quarter ($6.5 million net loss for the first nine months of the year included a $2.3 million loss on derivative instruments, relating primarily to conversion rights on debentures that were either exercised or expired during the first quarter).
Commenced design of a large-scale cannabinoid oils processing facility to increase current oils capacity. Civil works commenced in September 2017.
Completed installation of capsule manufacturing equipment with design capacity of up to 11,000 capsules per hour, and, after the third quarter, initiated the Health Canada approval process.
Continued negotiations with several Canadian pharmacy chains, building on the previously announced letter of intent with PharmaChoice, to collaborate on pharmacist education and the distribution, sale and marketing of the Company’s medical cannabis products.
Completed the first shipments of commercial cannabis oil to enter Australia and the Cayman Islands. Continued negotiations for export arrangements with parties in Europe, Africa, and Australia.
With current and planned capital expenditures, the Company is targeting production expansion which is estimated to reach 17,000 to 21,000 kg within the next 24 months.
Pursuing accretive transactions including recreational opportunities in accordance with applicable laws and regulations.
“We continue to be pleased with CanniMed’s remarkable sales growth as more and more patients and doctors gain confidence in our medical cannabis oils and dried herbal products,” said Brent Zettl, President, and CEO of CanniMed. “Producing to pharmaceutical standards in a pesticide-free environment sets a high standard and differentiates our products from others. We are advancing several new growth initiatives, including increasing productive capacity at our main facility in Saskatoon, developing exports in several countries and opening our sights on recreational market opportunities.”
