MediPharm Labs Q2 Revenue Declines 14% YoY, Here Are The Details

MediPharm Labs Corp. MEDIF LABS MLZ Q2 2022 revenue declined 14%, to CA$4.36 million ($3,37 million), compared to revenue of CA$5.07 million in Q2 2021.

Q2 2022 Financial Highlights

  • Gross profit was a loss of CA$532,000, compared to a loss of CA$7.73 million in Q2 2021.

  • Adjusted EBITDA was a loss of CA$6.34 million, compared to a loss of CA$7.43 million in Q2 2021.

Other Highlights

  • On April 20th, David Pidduck was named CEO and director of the company.

  • Subsequent to the quarter, entered into a share purchase agreement for the sale of MediPharm Labs Australia PTY for a minimum of AUD$6.9 million, which is expected to close in Q3 or Q4 2022. The company expects to save approximately CA$4M in expenses annualized following the sale of this facility.

  • Implemented a restructuring plan that will reduce Canadian non-manufacturing headcount by approximately 30%, reducing annualized expenses by approximately CA$3M beginning in Q3 2022.

  • Subsequent to the quarter, entered into a research support agreement with the Keck School of Medicine of University of Southern California to conduct a Phase 2 trial on the efficacy of THC and CBD to treat hospice-eligible patients diagnosed with dementia and experiencing agitation.

  • In July, the company was awarded a favorable summary judgment in the Ontario Court of Justice in connection with a supply agreement dispute in the amount of CA$9.8 million. This summary judgment and subsequent payment, and the conditional sale of the Australian facility, are expected to add over CA$16 million in cash to the balance sheet.

  • The company remains materially debt free and has outright ownership of its assets, including its GMP facility in Ontario.

Photo by Esteban Lopez on Unsplash

Related News

MediPharm Labs Awarded Payment Of CA$9.8M By Ontario Court Of Justice

MediPharm Labs Enters Into CA$4.68M Purchase Agreement For The Sale Of Australian Facility

MediPharm Labs Q1 Revenue Slightly Drops, Here Are The Details


 

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Posted In: CannabisEarningsNewsPenny StocksMarketsDavid Pidduck
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