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Yahoo
29-05-2025
- Business
- Yahoo
Rubicon Organics Inc (ROMJF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Net Revenue: $12.4 million, a 39% increase year over year. Adjusted EBITDA: $700,000, marking a $1.1 million improvement compared to the same period in 2024. Gross Profit: $3.8 million, a 72% improvement from Q1 of 2024. Gross Margin: Improved to 31%, up from 25% in the same quarter last year. Cash Position: Ended the quarter with $7.8 million in cash. Working Capital: $20.6 million. Credit Facilities: $10 million secured at an interest rate of 6.75%. Facility Acquisition: Agreement to acquire a new facility in Hope BC, expanding production capacity by over 40% to 15,500 kgs. Resin Vape Line: Expanded to 8 SKUs, capturing nearly 15% of the segment. Revenue Growth Drivers: Strong performance across Canada's four largest provinces and product innovation in the 1964 brand. Warning! GuruFocus has detected 1 Warning Sign with ROMJF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rubicon Organics Inc (ROMJF) reported a 39% increase in net revenue year-over-year, reaching $12.4 million in Q1 2025. The company achieved a positive adjusted EBITDA of $700,000, marking a $1.1 million improvement compared to the same period in 2024. Rubicon Organics Inc (ROMJF) received GACP certification for its Delta Facility, enabling its first international shipment to Poland. The acquisition of a new facility in Hope, BC, is expected to expand annual production capacity by over 40% to 15,500 kgs. The company's resin vape line captured nearly 15% of the segment, showing strong market acceptance and growth potential. The company experienced some share loss in the topical category due to competitors entering with lower-priced SKUs. Rubicon Organics Inc (ROMJF) anticipates significant startup operational expenses for the Hope Facility in 2025, with revenue not expected until 2026. There is a noted volatility in the capital markets, which could impact future financial strategies and growth plans. The company faces challenges in maintaining premium pricing amidst competition from lower-cost legacy markets. Gross margins showed fluctuations, with a slight decrease from Q4 2024, highlighting potential cost management challenges. Q: Can you provide more details on the 2,000 kilograms of contract-grown biomass expected this year? Is this incremental compared to last year? A: Yes, the 2,000 kilograms is entirely incremental. We did have some contract growth last year, but this is additional to that. (Margaret Brodie, CEO) Q: Once the Hope facility is operational, will you continue with contract grows, or will Hope replace them? A: We plan to continue with contract grows. We have long-term contracts with annual pricing discussions, and being a reliable partner is valuable in this market. (Margaret Brodie, CEO) Q: When do you anticipate receiving the license to start planting at the Hope facility? A: We expect to receive the license by the end of the summer, possibly by mid-July. We aim to have at least one harvest this year. (Margaret Brodie, CEO) Q: How should we think about gross margins on an annual basis, given quarterly fluctuations? A: Our production costs remain relatively flat annually. We aim for a gross margin around 35%, supported by pre-roll automation benefits. (Margaret Brodie, CEO) Q: Can you comment on the state of the premium cannabis segment and any impact of deflation on revenue growth? A: The premium segment remains stable, with some price increases since Q4 '24. We haven't experienced deflation impacting our revenue growth, as our genetics and brand strength continue to drive consumer demand. (Margaret Brodie, CEO) Q: What is your strategy for selling the new capacity from the Hope facility? A: We have strong unmet demand for larger format products and consistent high-quality products for international markets. We are confident in selling all of the new capacity. (Margaret Brodie, CEO) Q: Are you planning to expand beyond live resin vapes in your product offerings? A: Currently, we are focused on FSC resin and all-in-one vapes. We are not pursuing distillate products at this stage, as we see it as a race to the bottom on price. (Margaret Brodie, CEO) Q: What are the supply-demand dynamics in international markets, particularly for premium products? A: There is a short-term parity in mainstream supply, but premium supply remains limited. We expect demand to outpace supply as new markets develop. (Margaret Brodie, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Rubicon Organics Reports Q1 2025 Financial and Operating Results
Achieved net revenue of $12.4 million, representing a 39.2% increase compared to the same quarter in prior year Generated Adjusted EBITDA1 of $0.7 million, an improvement of $1.1 million year-over-year Removed conditions precedent for the purchase of the Hope Facility, advancing strategic expansion plans Completed a private placement for aggregate gross proceeds of $4.5 million VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ('Rubicon Organics' or the 'Company') is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the three months ended March 31, 2025 ('Q1 2025'). All amounts are expressed in Canadian dollars. 'We're proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,' said Margaret Brodie, CEO. 'With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.' "With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,' said Glen Ibbott, Interim CFO. 'Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility.' Q1 2025 and Subsequent Highlights: Achieved net revenue of $12.4 million, a 39.2% increase from the comparative prior year quarter Adjusted EBITDA1 of $0.7 million Achieved national market share of 2.0%2 in flower and pre-rolls, 5.1%2 in premium flower and pre-rolls, 14.7%2 in resin vapes, #52 overall for edibles with 26.7%2 in premium edibles, and Wildflower continues to be the #12 topical brand in Canada at 26.6%2 Removed remaining conditions for the Hope Facility acquisition with expected close in the near term, adding approximately 4,500 kgs of annual premium quality production, a 40% increase to the Company's capacity, with revenue expected in the first half of 2026 and full capacity run rate achieved by the end of 2026. Completed a private placement for aggregate gross proceeds of $4.5 million Received certification of compliance with GACP standards and completed first shipment to Europe Won Standard Producer of the Year at Grow Up awards in May 2025 Named industry veteran Glen Ibbott as Interim Chief Financial Officer Who We Are Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™. The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q1 2025 revenue up 39% year-over-year and positive Adjusted EBITDA for the fourth consecutive quarter and for eight of the last nine quarters. The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the planned acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment. As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5M financing and is on track for continued revenue and Adjusted EBITDA expansion. Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential. Where We Are Going: 2025 OutlookWith growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting at site. In order to increase our supply of premium flower, we are acquiring the Hope Facility to significantly expand our annual production capacity, adding an annual production capacity of 4,500 kg, representing more than a 40% increase compared with our current annual production capacity from the Delta Facility, bringing total annual production capacity to 15,500 kg of premium cannabis. On May 21, 2025, we announced the removal of all conditions precedent related to the purchase and sale agreement for the Hope Facility. This acquisition is expected to close in Q2 2025. Pending licensing timing expected sometime in the summer, we expect to be running at full capacity by the end of the year. While we plan to outlay just over $3 million in operating startup costs during 2025, we do not expect revenue contribution until 2026. Our 2024 net revenue growth was driven through strategic partnerships with co-manufacturers and contract growers and these arrangements are expected to provide up to 2,000 kgs of incremental biomass to our business in 2025. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada. With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them. Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in possess unique intellectual property in cannabis genetics, which we consider a critical asset in maintaining our position as a leading innovator within the industry. Our extensive genetics library is central to our strategy of delivering consistent, high-quality genetics and new product offerings for the premium and super-premium markets. We view this as a significant competitive advantage and plan to launch exciting new genetics throughout 2025. To date, we have launched BC Organic Pink Drip and BC Organic Sunset Runtz under the Simply Bare strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation. 2025 Results of Operations: Three months ended March 31, 2025$ March 31, 2024$ Net revenue 12,376,056 8,890,417 Production costs 2,901,783 2,692,692 Inventory expensed to cost of sales 5,368,642 3,737,334 Inventory written off or provided for 318,278 266,039 Gross profit before fair value adjustments 3,787,353 2,194,352 Gross profit % before fair value adjustments 31% 25% Fair value adjustments to cannabis plants, inventory sold, and other charges 439,650 164,252 Gross profit 4,227,003 2,358,604 Operating expenses 4,337,795 4,097,090 Profit / (loss) from operations (110,792 ) (1,738,486 ) Other expenses 211,272 153,856 Net profit / (loss) for the period (322,064 ) (1,892,342 ) Net profit / (loss) per share, basic (0.01 ) (0.03 ) Weighted average number of shares outstanding, basic 58,608,210 56,662,430 March 31, 2025 $ December 31, 2024$ Cash and cash equivalents 7,780,884 9,857,264 Accounts receivable 5,672,723 5,828,001 Inventories 12,377,580 10,735,739 Other current assets 4,269,347 4,230,818 Total current assets 30,100,534 30,651,822 Property, plant and equipment 22,869,365 23,493,973 Other non-current assets 2,447,643 2,465,526 Total assets 55,417,542 56,611,321 Accounts payable and accrued liabilities 8,083,309 9,263,231 Current portion of loans and borrowings 1,324,419 1,321,678 Other current liabilities 122,033 121,661 Total current liabilities 9,529,761 10,706,570 Non-current portion of loans and borrowings 8,297,436 8,478,439 Other non-current liabilities 6,151 24,151 Total liabilities 17,833,348 19,209,160 Total shareholders equity 37,584,194 37,402,161 Working capital 20,570,773 19,945,252 Three months ended March 31, 2025$ March 31, 2024$ Changes in non-cash working capital items (1,646,116 ) (423,346 ) Other operating activities 683,895 (435,811 ) Cash used in operating activities (962,221 ) (859,157 ) Purchase of property, plant and equipment (731,081 ) (384,004 ) Cash used in investing activities (731,081 ) (384,004 ) Principal and interest paid (355,869 ) (385,800 ) Other financing activities (24,801 ) (17,395 ) Cash used in financing activities (380,670 ) (403,195 ) Effect of exchange rate changes on cash (2,408 ) (16,699 ) Increase (decrease) in cash during the period (2,076,380 ) (1,663,055 ) Cash, beginning of period 9,857,264 9,784,190 Cash, end of period 7,780,884 8,121,135 Conference Call The Company will be hosting a conference call to discuss Q1 2025 results on Wednesday, May 28, 2025. Conference call details are as follows: Time: 7:00 AM PT / 10:00 AM ET Conference ID: 34244 Local dial-in: +1 (289) 514 5100 Toll Free N. America: +1 (800) 717 1738 Webcast: Rubicon Organics Q1 2025 Earnings Call RegistrationCONTACT INFORMATION Margaret BrodieCEOPhone: +1 (437) 929-1964Email: ir@ The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release. Non-GAAP Financial Measures This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at Adjusted EBITDA Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2025, March 31, 2024, and December 31, 2024. Three months ended March 31,2025 March 31, 2024 December 31,2024 $ $ $ Profit (loss) from operations (110,792 ) (1,738,486 ) 292,368 IFRS fair value accounting related to cannabis plants and inventory (439,650 ) (164,252 ) (54,271 ) (550,442 ) (1,902,737 ) 238,097 Depreciation and amortization 764,237 776,680 852,366 Share-based compensation expense 504,097 702,846 538,575 Adjusted EBITDA* 717,892 (423,212 ) 1,629,038 *Included in Adjusted EBITDA in the three months ended March 31, 2025, is $0.2 million of one-time costs incurred for the ERP implementation projectCautionary Statement Regarding Forward Looking Information This press release contains forward-looking information within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Rubicon Organics' goal of achieving industry leading profitability are "forward-looking statements". Forward-looking information can be identified by the use of words such as 'will' or variations of such word or statements that certain actions, events or results "will" be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. Risks and uncertainties associated with the forward looking information in this press release include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; Rubicon Organics' limited operating history and lack of historical profits; reliance on management; and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers; and those factors identified under the heading "Risk Factors" in Rubicon Organic's annual information form dated April 1, 2025 filed with Canadian provincial securities regulatory authorities. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although Rubicon Organics has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law. We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by law. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation.2 All retail data is sourced from Hifyre as at March 31, 2025 for current year and as at March 31, 2024 for prior year
Yahoo
28-05-2025
- Business
- Yahoo
Rubicon Organics Reports Q1 2025 Financial and Operating Results
Achieved net revenue of $12.4 million, representing a 39.2% increase compared to the same quarter in prior year Generated Adjusted EBITDA1 of $0.7 million, an improvement of $1.1 million year-over-year Removed conditions precedent for the purchase of the Hope Facility, advancing strategic expansion plans Completed a private placement for aggregate gross proceeds of $4.5 million VANCOUVER, British Columbia, May 27, 2025 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ('Rubicon Organics' or the 'Company') is Canada's leading premium licensed producer focused on cultivating and selling organic certified, premium and super-premium cannabis products, today reported its financial results for the three months ended March 31, 2025 ('Q1 2025'). All amounts are expressed in Canadian dollars. 'We're proud to deliver another strong quarter of revenue growth and profitability. Rubicon is cementing its leadership in premium organic cannabis through innovation, disciplined execution, and brand trust,' said Margaret Brodie, CEO. 'With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation.' "With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,' said Glen Ibbott, Interim CFO. 'Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility.' Q1 2025 and Subsequent Highlights: Achieved net revenue of $12.4 million, a 39.2% increase from the comparative prior year quarter Adjusted EBITDA1 of $0.7 million Achieved national market share of 2.0%2 in flower and pre-rolls, 5.1%2 in premium flower and pre-rolls, 14.7%2 in resin vapes, #52 overall for edibles with 26.7%2 in premium edibles, and Wildflower continues to be the #12 topical brand in Canada at 26.6%2 Removed remaining conditions for the Hope Facility acquisition with expected close in the near term, adding approximately 4,500 kgs of annual premium quality production, a 40% increase to the Company's capacity, with revenue expected in the first half of 2026 and full capacity run rate achieved by the end of 2026. Completed a private placement for aggregate gross proceeds of $4.5 million Received certification of compliance with GACP standards and completed first shipment to Europe Won Standard Producer of the Year at Grow Up awards in May 2025 Named industry veteran Glen Ibbott as Interim Chief Financial Officer Who We Are Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™. The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q1 2025 revenue up 39% year-over-year and positive Adjusted EBITDA for the fourth consecutive quarter and for eight of the last nine quarters. The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the planned acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment. As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5M financing and is on track for continued revenue and Adjusted EBITDA expansion. Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential. Where We Are Going: 2025 OutlookWith growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility and are in the trial stage of evaluating additional lighting at site. In order to increase our supply of premium flower, we are acquiring the Hope Facility to significantly expand our annual production capacity, adding an annual production capacity of 4,500 kg, representing more than a 40% increase compared with our current annual production capacity from the Delta Facility, bringing total annual production capacity to 15,500 kg of premium cannabis. On May 21, 2025, we announced the removal of all conditions precedent related to the purchase and sale agreement for the Hope Facility. This acquisition is expected to close in Q2 2025. Pending licensing timing expected sometime in the summer, we expect to be running at full capacity by the end of the year. While we plan to outlay just over $3 million in operating startup costs during 2025, we do not expect revenue contribution until 2026. Our 2024 net revenue growth was driven through strategic partnerships with co-manufacturers and contract growers and these arrangements are expected to provide up to 2,000 kgs of incremental biomass to our business in 2025. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada. With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them. Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in possess unique intellectual property in cannabis genetics, which we consider a critical asset in maintaining our position as a leading innovator within the industry. Our extensive genetics library is central to our strategy of delivering consistent, high-quality genetics and new product offerings for the premium and super-premium markets. We view this as a significant competitive advantage and plan to launch exciting new genetics throughout 2025. To date, we have launched BC Organic Pink Drip and BC Organic Sunset Runtz under the Simply Bare strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation. 2025 Results of Operations: Three months ended March 31, 2025$ March 31, 2024$ Net revenue 12,376,056 8,890,417 Production costs 2,901,783 2,692,692 Inventory expensed to cost of sales 5,368,642 3,737,334 Inventory written off or provided for 318,278 266,039 Gross profit before fair value adjustments 3,787,353 2,194,352 Gross profit % before fair value adjustments 31% 25% Fair value adjustments to cannabis plants, inventory sold, and other charges 439,650 164,252 Gross profit 4,227,003 2,358,604 Operating expenses 4,337,795 4,097,090 Profit / (loss) from operations (110,792 ) (1,738,486 ) Other expenses 211,272 153,856 Net profit / (loss) for the period (322,064 ) (1,892,342 ) Net profit / (loss) per share, basic (0.01 ) (0.03 ) Weighted average number of shares outstanding, basic 58,608,210 56,662,430 March 31, 2025 $ December 31, 2024$ Cash and cash equivalents 7,780,884 9,857,264 Accounts receivable 5,672,723 5,828,001 Inventories 12,377,580 10,735,739 Other current assets 4,269,347 4,230,818 Total current assets 30,100,534 30,651,822 Property, plant and equipment 22,869,365 23,493,973 Other non-current assets 2,447,643 2,465,526 Total assets 55,417,542 56,611,321 Accounts payable and accrued liabilities 8,083,309 9,263,231 Current portion of loans and borrowings 1,324,419 1,321,678 Other current liabilities 122,033 121,661 Total current liabilities 9,529,761 10,706,570 Non-current portion of loans and borrowings 8,297,436 8,478,439 Other non-current liabilities 6,151 24,151 Total liabilities 17,833,348 19,209,160 Total shareholders equity 37,584,194 37,402,161 Working capital 20,570,773 19,945,252 Three months ended March 31, 2025$ March 31, 2024$ Changes in non-cash working capital items (1,646,116 ) (423,346 ) Other operating activities 683,895 (435,811 ) Cash used in operating activities (962,221 ) (859,157 ) Purchase of property, plant and equipment (731,081 ) (384,004 ) Cash used in investing activities (731,081 ) (384,004 ) Principal and interest paid (355,869 ) (385,800 ) Other financing activities (24,801 ) (17,395 ) Cash used in financing activities (380,670 ) (403,195 ) Effect of exchange rate changes on cash (2,408 ) (16,699 ) Increase (decrease) in cash during the period (2,076,380 ) (1,663,055 ) Cash, beginning of period 9,857,264 9,784,190 Cash, end of period 7,780,884 8,121,135 Conference Call The Company will be hosting a conference call to discuss Q1 2025 results on Wednesday, May 28, 2025. Conference call details are as follows: Time: 7:00 AM PT / 10:00 AM ET Conference ID: 34244 Local dial-in: +1 (289) 514 5100 Toll Free N. America: +1 (800) 717 1738 Webcast: Rubicon Organics Q1 2025 Earnings Call RegistrationCONTACT INFORMATION Margaret BrodieCEOPhone: +1 (437) 929-1964Email: ir@ The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release. Non-GAAP Financial Measures This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at Adjusted EBITDA Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2025, March 31, 2024, and December 31, 2024. Three months ended March 31,2025 March 31, 2024 December 31,2024 $ $ $ Profit (loss) from operations (110,792 ) (1,738,486 ) 292,368 IFRS fair value accounting related to cannabis plants and inventory (439,650 ) (164,252 ) (54,271 ) (550,442 ) (1,902,737 ) 238,097 Depreciation and amortization 764,237 776,680 852,366 Share-based compensation expense 504,097 702,846 538,575 Adjusted EBITDA* 717,892 (423,212 ) 1,629,038 *Included in Adjusted EBITDA in the three months ended March 31, 2025, is $0.2 million of one-time costs incurred for the ERP implementation projectCautionary Statement Regarding Forward Looking Information This press release contains forward-looking information within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Rubicon Organics' goal of achieving industry leading profitability are "forward-looking statements". Forward-looking information can be identified by the use of words such as 'will' or variations of such word or statements that certain actions, events or results "will" be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. Risks and uncertainties associated with the forward looking information in this press release include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; Rubicon Organics' limited operating history and lack of historical profits; reliance on management; and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers; and those factors identified under the heading "Risk Factors" in Rubicon Organic's annual information form dated April 1, 2025 filed with Canadian provincial securities regulatory authorities. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although Rubicon Organics has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law. We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by law. 1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation.2 All retail data is sourced from Hifyre as at March 31, 2025 for current year and as at March 31, 2024 for prior yearError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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25-03-2025
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MTL Cannabis Corp. Announces U.S. Listing on the OTCQB Market
PICKERING, ON, March 25, 2025 /CNW/ - MTL Cannabis Corp. (CSE: MTLC) (OTCQB: MTLNF) ("MTL" or the "Company") is pleased to announce that its common shares will commence trading on the OTCQB marketplace under the symbol "MTLNF" as of the opening of markets today. The Company's shares will continue to trade on the Canadian Securities Exchange under the symbol "MTLC". The listing on the OTCQB is a step in enhancing the Company's visibility and accessibility for U.S. investors. This milestone is expected to improve liquidity and expand MTL's reach into the U.S. investment market. "The OTCQB listing marks a significant milestone for MTL Cannabis Corp. as we expand our presence and accessibility in the US market," said Michael Perron, CEO of MTL Cannabis Corp. "This step underscores our commitment to growing shareholder value by reaching a broader investor base, increasing liquidity, and positioning MTL Cannabis Corp. as a key player in the global cannabis industry. The US market's depth and engagement present opportunities for the Company's continued growth and development." The OTCQB Venture Market provides an established platform for early-stage and growth companies to enhance their visibility in the U.S. market. Companies listed on OTCQB must meet rigorous reporting standards, undergo annual verification, and comply with management certification requirements, providing investors with a trusted market for trading. Real-time quotes and market information on MTL Cannabis Corp. can be found at About MTL Cannabis Corp. MTL Cannabis Corp. 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 or the Company's public filings at 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. 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