Highlights
- Sales of $16.7 million in 2017 were 70% higher than 2016.
- Concentrated cannabis oils sales revenues were approximately 51% of total revenues for the year, compared to 31% of total revenues in 2016.
- Higher sales revenues were driven by rising demand, as dried equivalent medical cannabis sales in 2017 increased 74% from the comparable period in 2016 to 1,647 kg, at an average selling price of $9.99 per gram equivalent.
- Adjusted EBITDA from continuing operations was $(1.3) million for 2017 (2016 - $0.2 million).
- Net loss of $5.9 million for 2017, including a $1.9 million loss on derivative instruments (2016 - $23.2 million net loss, including an $8.0 million loss on derivative instruments, relating primarily to conversion rights on debentures that were either exercised or expired during the first quarter of 2017).
- Commenced construction of a large-scale, state-of-the art ethanol extraction cannabinoid oils processing facility to increase current oils capacity. Civil works for this facility were completed in first quarter of fiscal 2018.
- Completed installation of capsule manufacturing equipment with design capacity of up to 11,000 capsules per hour, and, during the fourth quarter of fiscal 2017, initiated the Health Canada approval process for sale of capsules.
- 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.
- 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.
- On January 24, 2018, CanniMed Therapeutics Inc. and Aurora Cannabis Inc. (“Aurora”) announced that they have entered into a support agreement with respect to the acquisition of CanniMed by Aurora, as detailed below.
“Our success is a reflection of the quality of our people, our assets and ability to remain focused on high-quality product from GMP compliant production practices,” said Brent Zettl, President and CEO of CanniMed. “I applaud our operations team on their many accomplishments throughout the years and for positioning CanniMed Therapeutics Inc. for continued success. In the proposed transaction with Aurora Cannabis, our shareholders gain a meaningful ownership in what will become one of Canada’s largest cannabis producers. The combination creates a company with a strong balance sheet positioned to grow strategically from a diverse portfolio of assets to create long-term value for shareholders.”
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