Quebecois cannabis operator Canada House Wellness Group (CSE: CHV) says it finished the third quarter with more money and reduced losses than last quarter thanks to its veteran-focused medical cannabis platform and strong demand for its adult-use products.
On Tuesday, the licensed producer released its third quarter financial statements for the three months ended Jan. 31, with revenue of $6.2 million, up 21 per cent from $5.1 million last quarter.
Gross profit more than tripled to $2.5 million from $773,000 last quarter. Loss and comprehensive loss improved 50 per cent to negative $1.7 million from negative $3.4 million in the second quarter.
Adjusted earnings before interest, taxes, depreciation and amortization was $755,000, up $1.3 million from the last quarter with negative $501,000.
Cash in hand at the end of the period was $569,000, down 35 per cent from $874,000 last quarter.
Chart via Canada House
CEO Chris Churchill-Smith says the positive revenue trend was driven by the growth of his firm’s medical cannabis platform, focused on veterans, as well as demand for its adult-use products across Canada.
In August, the company announced a reverse takeover deal where Canada House will operate under Montréal Cannabis Médical Inc.’s corporate name, with its shares trading on the CSE after the transaction closes.
“We expect the strong revenue growth demonstrated this quarter to continue as we prepare to launch already accepted SKUs in 3 of Canada’s largest recreational markets and continue our integration efforts with Montréal Cannabis Médical Inc. (MTL),” Churchill-Smith said.
“We look forward to completing our transaction with MTL Cannabis and continuing to demonstrate operational excellence and industry-leading financial performance.”
In November, Canada House said it expected to finalize the reverse takeover early this year if conditions are met.
Read more: MTL Cannabis RTO of Canada House to close early 2022
Read more: MTL Cannabis to take control of Canada House
Under the RTO, MTL Cannabis will take on Canada House’s extended sales and processing licensing capabilities, provincial supply deals, a clinic network with 14 Canadian locations as well as an online medical business focused on military veterans.
Canada House is the parent company of two licensed producers, Abba Medix Corp. in Ontario and IsoCanMed Inc. in Quebec. Both firms have launched MTL Cannabis dried flower SKUs in four provinces.
The company also owns Canada House Clinics Inc. which offers cannabinoid therapy services, as well as Knalysis Technologies which provides cloud-based software linking physician, provider and patient data to support medical cannabis treatment.
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