Extraction specialist MediPharm Labs
The Ontario-based company brought in revenue of $22 million in the first three months of 2019, and that shot up to $31.5 million in Q2. It swung from a pre-tax loss of $325,000 in Q1 to $4.1 million net income, while adjusted EBITDA increased to $7.7 million.
In the three months to Dec. 31, 2018, revenue was just $10.2 million and net loss before tax stood at $3.5 million, so the company is growing increasingly profitable as revenue rises.
Chief executive Patrick McCutcheon said the firm made “tremendous progress” during Q2. “Based on the strength of our business model and the effectiveness of our corporate strategies, we’ve become the first public Canadian extraction only company to deliver bottom-line earnings and do so while investing heavily in our sophisticated extraction and production platforms ahead of benefits realized,” he added.
Two weeks ago, LABS graduated to the TSX and its share price has increased by 30% since then. It began the year trading at $1.80 and it broke through the $7.00 barrier this month.
The firm has been increasing throughput capacity to 275,000 kg this year as it plans for the Canadian recreational market to open up for edibles and other concentrates. Since Q4 2018 it has purchased cannabis flower from 23 different Canadian producers. It is working with the likes of Canopy Growth Corp. and TerrAscend to supply concentrates, while it recently tied up a deal to secure Ace Valley with a minimum of 2 million vape pens.
In June, MediPharm completed its first shipment to Australia after securing an import permit from the Office of Drug Control Section. Auscann, its partner Down Under, receives the bulk cannabis oil and turns it into capsules to sell to the Australian market.
It is now building a facility southeast of Melbourne and that can handle annual throughput of 75,000 kg.
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