Meta Growth Announces First Quarter 2020 Financial and Operational Results

Published: January 31, 2020

Meta Growth Announces First Quarter 2020 Financial and Operational Results

National Access Cannabis Corp. d/b/a Meta Growth, Canada’s largest publicly traded recreational cannabis retailer by revenue1, announced its financial and operational results for the three months ended November 30, 2019.

Financial and Operational Highlights for the Quarter Ended November 30, 2019:

  • Opened three retail cannabis stores, resulting in a total portfolio of 33 corporately owned and operated stores
  • Total revenue of $15.8 million at a gross margin of 32%
  • Extended maturity of $9 million Loan from Opaskwayak Cree Nation to December 31, 2022
  • $6.8 million Cash on hand at quarter end

Highlights Subsequent to the Quarter Ended November 30, 2019:

  • Stronger capital position to allow for execution and first mover advantage in the Ontario market with an announced $10 million Bought Deal offering and an announced $11 million Loan Agreement with Opaskwayak Cree Nation, maturing December 31, 2024
  • Announced Services Agreements with two winners of the Ontario Cannabis Store Lottery, and plans to open the new Meta Cannabis Co. designed stores in Toronto at Yonge and Gerrard, and the first licensed cannabis store in Kitchener
  • Strong demand of the ‘cannabis 2.0 products’ across our network of stores

Selected Summary of Quarterly Financial Results

Statement of Loss Highlights

Three Months Ended November 30

(in CDN$’s)

2019

2018

$ Change

% Change

Revenue

15,796,588

3,787,228

12,009,360

317%

Cost of Goods Sold

10,784,525

2,339,307

8,445,218

361%

Gross Profit

5,012,063

1,447,921

3,564,142

246%

Net Loss and Comprehensive Loss

5,690,109

7,876,151

(2,186,042)

(28%)

Net Loss per Share

$0.03

$0.05

($0.02)

For a more comprehensive overview of the financial highlights presented in this press release, please refer to Meta Growth’s Condensed Interim Consolidated Financial Statements for the three months ended November 30, 2019 and 2018, and the Company’s Interim MD&A – Quarterly Highlights for the three month period ended November 30, 2019.  Both of these documents are available on the Company’s SEDAR profile at www.sedar.com.

“We continued to expand our store footprint in Q1 as three additional stores opened in our retail enterprise network,” said Mark Goliger, CEO of Meta Growth. “We have secured $21 million in financing over the last month and will immediately be putting these funds to use in order to expand our footprint in Ontario, especially given the increased competition now seen in the Alberta market.  We are also excited for the imminent opening of META branded stores in Ontario with two winners of the Ontario Cannabis Store Lottery.  With the Ontario market finally opening up, and with our funding in place to capitalize on obtaining a first mover advantage in Ontario, we are anticipating significant revenue growth for our company in 2020.”

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