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Montréal, Québec – June 28, 2022 (CNW) – Canada House Wellness Group (CSE: CHV) (“Canada
House” or the “Company”) is pleased to report its financial results for the three months ending April
30, 2022. All amounts are stated in thousands of Canadian dollars. Complete details may be found at
www.sedar.com.
Fourth Quarter 2022 Financial Highlights:
- Revenue was $5,497, an increase of $2,599 or 90%, compared to $2,898 during the same period in the prior year.
- Loss and Comprehensive Loss for the three months ending April 30, 2022, was $2,146, a decrease of $4,010 or 65% compared to a loss of $6,156 during the same period in 2021.
- Adjusted EBITDA 1 of $322 compared to ($3,070) for the three months ending April 30, 2021, an increase of $3,392 in earnings.
- Cash flow used in operating activities for the twelve months ending April 30, 2022 was $1,991, a decrease of $1,364 or 41%, compared to $3,355 during the same period in 2021.
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1 Adjusted EBITDA is a non-IFRS measure used by management that does not have any standardized
meaning prescribed by IFRS and may not be comparable to similar measures presented by other
companies. Management defines adjusted EBITDA as loss and comprehensive loss from operations,
as reported, before finance and transaction costs, tax, depreciation, and amortization, and adjusted for
removing share-based payments, fair value adjustment on sale of inventory, fair value adjustment on
biological assets and other non-cash items including impairment losses. Management believes this
measure provides useful information as it is a commonly used measure in the capital markets to
approximate operating performance on an adjusted basis as described above. See reconciliation of
“Adjusted EBITDA (non-IFRS measure)” below.
- Cash flow used in investing activities for the twelve months ending April 30, 2022 was $551
compared to $664 during the same period in 2021, a decrease of $113 or 17%. - Net cash provided by financing activities for the twelve months ending April 30, 2022 was $1,465
compared to $4,087 during the same period in 2021, a decrease of $2,622 or 64%. - Shareholder’s equity was a deficit of $2,483 compared to $6,873 of surplus as of April 30, 2021.
- Cash position was $758 as of April 30, 2022 compared to $1,835 as at April 30, 2021
“We are extremely pleased with our continued quarter over quarter revenue growth and positive
adjusted EBITDA. Our strong fourth quarter results reflect the strength and continued growth of our
high-margin medical platform and the success of our new adult-use SKUs in recreational markets
across Canada,” commented Chris Churchill-Smith, CEO of Canada House. “The steps we have taken
to date to integrate with MTL Cannabis have been very successful and we expect our revenue growth
and financial performance to continue on its current trajectory as we further align our operations under
one cohesive strategy.”
“We are extremely pleased with our continued quarter over quarter revenue growth and positive
adjusted EBITDA. Our strong fourth quarter results reflect the strength and continued growth of our
high-margin medical platform and the success of our new adult-use SKUs in recreational markets
across Canada,” commented Chris Churchill-Smith, CEO of Canada House. “The steps we have taken
to date to integrate with MTL Cannabis have been very successful and we expect our revenue growth
and financial performance to continue on its current trajectory as we further align our operations under
one cohesive strategy.”
About Canada House Wellness Group
Canada House Wellness Group is the parent company of Abba Medix Corp., a Licensed Producer in
Pickering, Ontario that produces high quality medical grade cannabis; IsoCanMed Inc., a Licensed
Producer in Louiseville, Québec growing premium cannabis in its 64,000 sq. ft. indoor production
facility; Canada House Clinics Inc., with clinics across the country that work directly with primary
care teams to provide specialized cannabinoid therapy services to patients suffering from simple and
complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloudbased
software that links physician, provider, and patient to data that supports treatment with medical
cannabis.
Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis
and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit
www.canadahouse.ca or the Company’s public filings at www.sedar.com.
For further information, please contact:
Steven Pearce, Vice-President, Legal
Canada House Wellness Group
289-980-3584
spearce@canadahouse.ca
Cautionary Statement Regarding Forward-Looking Information. This press release contains forwardlooking
statements, including statements that relate to, among other things, the Company’s clinic,
production and technology businesses, its future plans, the Company’s markets, objectives, goals,
strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of
words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”,
“estimate”, “anticipate”, “believe”, “plan”, “objective” and “continue” (or the negative thereof) and
words and expressions of similar import. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, such statements involve risks and
uncertainties, and undue reliance should not be placed on such statements. Certain material factors or
assumptions are applied in making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements. Material assumptions used to develop
forward-looking information in this news release include, among other things, the closing of the
transaction with MTL Cannabis and the receipt of all necessary regulatory and shareholder approvals associated
therewith, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes
Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act,
the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis and
cannabis based edibles, vapes and oils legal for recreational use on October 17, 2018 and October 17,
2019; Company liquidity and capital resources, including the availability of additional capital
resources to fund its activities; level of competition; the ability to adapt products and services to the
changing market; the ability to attract and retain key executives; and the ability to execute strategic
plans. Additional information about material factors that could cause actual results to differ materially
from expectations and about material factors or assumptions applied in making forward-looking
statements may be found in the Company’s most recent annual and interim Management’s Discussion
and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with
Canadian securities regulatory authorities. The Company does not undertake any obligation to update
publicly or to revise any of the forward-looking statements contained in this document, whether as a
result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the
CSE) accepts responsibility for the adequacy or accuracy of this release.
