TORONTO, Dec. 23, 2019 /CNW/ - National Access
Cannabis Corp. (TSXV: META) d/b/a Meta Growth
("Meta Growth", "META" or the
"Company"), Canada's largest publicly traded
recreational cannabis retailer by revenue1, today
announced its financial results for the fourth quarter and fiscal
year ended August 31, 2019. All
amounts are expressed in Canadian dollars.
Q4 2019 Financial Highlights
- Total Quarterly Revenue of $17.1
million
- Total Gross Margin = 33%
- Retail Cannabis Stores Adjusted EBITDA Margin = 14%
- 30 Operating Retail Stores at the end of the quarter, 6 of
which opened during the quarter
"We achieved four quarters of consecutive revenue growth in
fiscal year 2019," said Mark
Goliger, CEO of Meta Growth. "We continue to expand
our store footprint in the western provinces, and we are excited to
begin opening stores in Ontario
soon. We are also looking forward to providing our customers
with access to Cannabis 2.0 products in the very near future.
While we are very proud of our industry leading achievements to
date, we recognize that we are just at the beginning stages of a
very dynamic and high growth industry, and look forward to
capitalizing on the many opportunities we have planned for FY
2020."
For a more comprehensive overview of the financial highlights
presented in this press release, please refer to Meta Growth's
Audited Consolidated Financial Statements for the years ended
August 31, 2019 and 2018, and the
Company's Management Discussion and Analysis for the year ended
August 31, 2019. Both of these
documents are available on the Company's SEDAR profile at
www.sedar.com.
Summary Financial Tables
|
|
|
|
|
|
Three months
ended
August 31, 2019
|
Medical
Cannabis
Education
|
Retail
Cannabis
Stores
|
Research
|
Corporate
|
Total
|
Revenue
|
286,060
|
16,780,502
|
-
|
-
|
17,066,562
|
Cost of goods
sold
|
(34,720)
|
(11,485,185)
|
-
|
-
|
(11,519,905)
|
Gross
profit
Gross profit margin
(%)
|
251,340
88%
|
5,295,317
32%
|
-
n/a
|
-
n/a
|
5,546,657
33%
|
Operating
expenses
|
(460,884)
|
(4,137,766)
|
(284,797)
|
(4,140,187)
|
(9,023,634)
|
Income / (Loss)
from
operations
|
(209,544)
|
1,157,551
|
(284,797)
|
(4,140,187)
|
(3,476,977)
|
Adjusted
EBITDA
Adjusted EBITDA
%
|
(197,902)
n/a
|
2,349,756
14%
|
(284,797)
n/a
|
(2,573,559)
n/a
|
(706,502)
n/a
|
Other income /
(expenses)
|
(8,920,784)
|
(3,827,011)
|
-
|
500,067
|
(12,247,728)
|
Deferred tax
recovery
|
-
|
-
|
-
|
1,948,063
|
1,948,063
|
Net Income /
(loss)
|
(9,130,328)
|
(2,669,460)
|
(284,797)
|
(1,692,057)
|
(13,776,642)
|
|
|
|
|
|
|
Twelve months
ended
August 31, 2019
|
Medical
Cannabis
Education
|
Retail
Cannabis
Stores
|
Research
|
Corporate
|
Total
|
Revenue
|
1,240,062
|
52,861,598
|
-
|
-
|
54,101,660
|
Cost of goods
sold
|
(205,500)
|
(36,240,391)
|
-
|
-
|
(36,445,891)
|
Gross
profit
Gross profit margin
(%)
|
1,034,562
83%
|
16,621,207
31%
|
-
n/a
|
-
n/a
|
17,655,769
33%
|
Operating
expenses
|
(2,294,277)
|
(17,163,268)
|
(847,207)
|
(19,904,039)
|
(40,208,791)
|
Loss from
operations
|
(1,259,715)
|
(542,061)
|
(847,207)
|
(19,904,039)
|
(22,553,022)
|
Adjusted
EBITDA
|
(928,242)
|
7,202,874
|
(847,207)
|
(10,163,831)
|
(4,736,406)
|
Adjusted EBITDA %
|
n/a
|
14%
|
n/a
|
n/a
|
n/a
|
Other income /
(expenses)
|
(8,936,848)
|
(3,911,429)
|
-
|
500,067
|
(12,348,210)
|
Deferred tax
recovery
|
-
|
-
|
-
|
2,824,630
|
2,824,630
|
Net loss
|
(10,196,563)
|
(4,453,490)
|
(847,207)
|
(16,579,342)
|
(32,076,602)
|
Financial Measures
There are measures included in this
news release that do not have a standardized meaning prescribed by
IFRS and therefore may not be comparable to similarly titled
measures and metrics presented by other publicly traded
companies. The Company includes these measures because it
believes certain investors use these measures and metrics as a
means of assessing financial performance. EBITDA (earnings
before interest, taxes, depreciation and amortization) is a
non-IFRS financial measure that does not have any standardized
meaning prescribed by IFRS and may not be comparable to similar
measures presented by other companies.
Adjusted EBITDA
|
|
|
|
|
|
Three months
ended
August 31, 2019
|
Medical
Cannabis
Education
|
Retail
Cannabis
Stores
|
Research
|
Corporate
|
Total
|
Income/(Loss) from
operations
|
(209,544)
|
1,157,551
|
(284,797)
|
(4,140,187)
|
(3,476,977)
|
Amortization of
property and
equipment
|
11,642
|
516,140
|
-
|
-
|
527,782
|
Amortization of
intangible assets
|
-
|
-
|
-
|
419,133
|
419,133
|
Finance and other
costs
|
-
|
-
|
-
|
816,474
|
816,474
|
Professional fees –
fundraising and
acquisition
|
-
|
-
|
-
|
315,512
|
315,512
|
Integration and
restructuring costs
|
-
|
-
|
-
|
-
|
-
|
Pre-operating retail
expenses
|
-
|
676,065
|
-
|
-
|
676,065
|
Share based
compensation
|
-
|
-
|
-
|
15,509
|
15,509
|
Adjusted
EBITDA
Adjusted EBITDA
%
|
(197,902)
n/a
|
2,349,756
14%
|
(284,797)
n/a
|
(2,573,559)
n/a
|
(706,502)
n/a
|
|
|
|
|
|
|
Twelve months
ended
August 31, 2019
|
Medical
Cannabis
Education
|
Retail
Cannabis
Stores
|
Research
|
Corporate
|
Total
|
Loss from
operations
|
(1,259,715)
|
(542,061)
|
(847,207)
|
(19,904,039)
|
(22,553,022)
|
Amortization of
property and
equipment
|
331,473
|
1,380,241
|
-
|
-
|
1,711,714
|
Amortization of
intangible assets
|
-
|
-
|
-
|
1,676,532
|
1,676,532
|
Finance and other
costs
|
-
|
-
|
-
|
5,307,584
|
5,307,584
|
Professional fees –
fundraising and
acquisition
|
-
|
-
|
-
|
1,411,722
|
1,411,722
|
Integration and
restructuring costs
|
-
|
-
|
-
|
380,479
|
380,479
|
Pre-operating retail
expenses
|
-
|
6,364,694
|
-
|
-
|
6,364,694
|
Share based
compensation
|
-
|
-
|
-
|
963,891
|
963,891
|
Adjusted
EBITDA
Adjusted EBITDA
%
|
(928,242)
n/a
|
7,202,874
14%
|
(847,207)
n/a
|
(10,163,831)
n/a
|
(4,736,406)
n/a
|
Management defines Adjusted EBITDA as the net income or loss
from operations, as reported before interest, tax, and adjusted by
removing non-cash items, including stock-based compensation
expense, depreciation, amortization, and further adjusted to remove
integration and restructuring related costs, as well as upfront
costs required to open a retail store. Management believes
Adjusted EBITDA is a useful financial metric to assess its
operating performance on a cash adjusted basis before the impact of
non-cash items, acquisition related costs, and non-recurring
expenditures. Adjusted EBITDA is a non-IFRS financial measure
that does not have any standardized meaning and therefore may not
be comparable to similar measures presented by other issuers.
About Meta Growth
With a portfolio of 36 licensed
retail locations in its nationwide network, Meta Growth is a leader
in secure, safe and responsible access to legal recreational
cannabis in Canada. Through its
Canada-wide network of Meta
Cannabis Co.™, Meta Cannabis Supply Co.™ and NewLeaf Cannabis™
recreational cannabis retail stores, Meta Growth enables the public
to gain knowledgeable access to Canada's network of authorized Licensed
Producers of cannabis. National Access Cannabis d/b/a Meta Growth
is listed on the TSX Venture Exchange under the symbol (TSXV:
META).
For more information on Meta Growth, visit:
metagrowth.com
metacannabis.com
newleafcannabis.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward looking
statements or information. Forward-looking statements and
information in this news release includes, but is not limited to,
opening cannabis retail stores in Ontario and retailing new cannabis products.
Although the Company believes that the expectations and assumptions
on which the forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the
forward-looking statements and information because the Company
cannot give any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results and developments may differ
materially from those that are currently contemplated by these
statements depending on, among other things, the ability to obtain
or maintain licenses to retail cannabis products; future
legislative and regulatory developments involving the cannabis
industry in Canada; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms,
and the cannabis industry in Canada generally. The Company cautions that
the foregoing list of risks and uncertainties is not exhaustive.
The forward-looking statements and information contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statement or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
1 New Cannabis Ventures, Public
Cannabis Company Revenue & Income Tracker. Largest publicly
traded cannabis retailer by revenue.
SOURCE National Access Cannabis Corp d/b/a Meta Growth