Quality Products and Services Drive Continued Positive Operating Income, EBITDA, and Strong Margins

PICKERING, ON , Aug. 28, 2025  /CNW/ - MTL Cannabis Corp. (CSE: MTLC) ("MTL" or the "Company") is pleased to report it has filed the financial statements as at and for the three-month period ending June 30, 2025, and 2024. Complete details may be found at www.sedarplus.ca.

First Quarter 2025 Consolidated Financial Highlights:

• The Company generated revenue of $25,890,287, an improvement of $48,023, compared to $25,842,264 in the same quarter of last year.
• The Company continues to demonstrate positive Operating Income of $2,052,265, compared to $4,963,969 in the same quarter of last year.
• The Company continues to generate positive EBITDA of $3,447,895 and Adjusted EBITDA of $2,995,799, compared to $6,527,812 and $5,034,889, respectively, in the same quarter of last year.

^{(1)  See "Non-IFRS financial measures" section below for reconciliation of EBITDA and Adjusted EBITDA.}

Capital Project Summary:

To facilitate future growth, the Company has announced a number of transformational capital projects which have started during the first quarter of FY2026, specifically:

• LED Lighting Installation: During the first quarter of FY2026, the Company successfully completed the retrofit of all cultivation rooms at all facilities located in Montreal and Louisville, allowing for the installation of LED lights to support ongoing cultivation operations. Once fully operational, the LED lighting technology is expected to reduce utility costs while increasing yields and overall product quality for the market.
  
  
• Retrofit of 815 Tecumseh Facility: The Company has begun construction on the retrofit and expansion of the 815 Tecumseh facility in Pointe-Claire, QC. Currently, the facility serves both cultivation and all post-harvest, processing, packaging, and fulfillment operations for the Canadian recreational and international export markets. The retrofit will allow for a total of four (4) new rooms for cultivation operations, expanding the cultivation capacity of the asset from up to 9,000 kg per year to up to 11,000 kg per year after completion. The retrofit of the 815 Tecumseh facility is expected to be completed by March 2027.
  
  
• Retrofit of 4225 Transcanadienne Facility: The Company has received a Health Canada processing license at its facility located at 4225 Transcanadienne in Pointe-Claire, QC. The facility was previously unutilized and will now serve as the 'hub' asset for the Company as the central processing asset for all post-harvest operations, processing, packaging, and distribution for the Canadian recreational, Canadian medical, and international export channels. The transition of these key processes will allow for the further expansion of both the 815 Tecumseh facility and the Abba Medix facility in Pickering, ON. The retrofit of the 4225 Transcanadienne facility is expected to be completed by March 2027.
  
  
• Transition of Medical Fulfillment Operations: During Q2 2026, the Company is transitioning the medical fulfillment operations from Pickering to Montreal in the 4225 Transcanadienne facility. This will allow the Company to expand medical fulfillment operations, expand the medical menu which already features over 450 SKUs from over 38 different suppliers, and allow the Company to accelerate the growth of the veteran focused medical business. The Company currently serves over 5,000 clients overall, and over 3,500 veterans on the medical platform.
  
  
• Retrofit of Pickering Facility: The Company has announced the complete shutdown and retrofit of the Abba Medix facility located in Pickering, ON. The retrofit will include the installation of LED lighting technology being utilized in the Company's other cultivation assets, and allow for the expansion of cultivation operations at Abba Medix, increasing the estimated annual yields from 2,500kg to over 4,000 kg per year. The project is expected to be completed in early 2027.

Management Commentary:

"We are incredibly proud of what we have been able to achieve over the past few years since completing the RTO transaction with Canada House Wellness and the subsequent turnaround and integration of the consolidated operations, allowing us to achieve industry leading results" said Michael Perron, CEO of MTL.

"We are making significant investments into our operations in order to expand our production capabilities and realign internal operations to maximize our future growth potential, setting the Company up for the next chapter of growth. Now that we have our house in order with the support of a Schedule 1 financial institution, we are able to comfortably take on these transformational capital initiatives and set the company up for continued long term growth in the Canadian recreational, Canadian medical, and international export markets." 

Non-IFRS financial measures

In addition to results reported in accordance with IFRS, the Company uses certain non-IFRS financial measures as supplemental indicators of its financial and operating performance. These non-IFRS financial measures include Adjusted EBITDA. The Company believes these supplementary financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company defines Adjusted EBITDA as income (loss) from continuing operations, as reported, adjusted for depreciation and amortization, financing costs, gains and losses on sale of marketable securities, interest and accretion, share-based payments, change in fair value of biological assets realized through inventory sold, and unrealized gains and losses on changes in fair value of biological assets. The Company uses EBITDA as a measure of the cash generating capacity of its business. The Company uses Adjusted EBITDA to assist with comparatives to other companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets and inventory, which may be volatile on a period-to-period basis. EBITDA and Adjusted EBITDA should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance defined under IFRS. EBITDA and Adjusted EBITDA are intended to provide a proxy for the Company's operating cash flow and are widely used by industry analysts and investors to compare the Company to its competitors and derive expectations of the future financial performance of the Company.

The Company's method of calculating EBITDA and Adjusted EBITDA may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies.

The table below provide a reconciliation of Net Income as reported under IFRS in the annual financial statements to EBITDA and Adjusted EBITDA for each of the three-month periods ended June 30, 2025 and 2024.

About MTL Cannabis Corp. 

MTL Cannabis Corp. is the parent company of  Montréal Medical Cannabis Inc. ("MTL Cannabis"), a licensed producer operating from a 57,000 sq ft licensed indoor grow facility in Pointe Claire, Québec; Abba Medix Corp., a licensed producer in Pickering, Ontario that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility; and Canada House Clinics Inc., operating clinics across Canada that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions.

As a flower-first company built for the modern street, MTL Cannabis uses proprietary hydroponic growing methodologies supported by handcrafted techniques to produce products that are truly craft for the masses. MTL Cannabis focuses on craft quality cannabis products, including lines of dried flower, pre-rolls and hash marketed under the "MTL Cannabis", "Low Key by MTL" and "R'belle" brands for the Canadian market through nine distribution arrangements with various provincial cannabis distributors. MTL Cannabis has also developed several export channels for bulk and unbranded GACP quality cannabis.

It is MTL's goal for Abba Medix Corp. to become the leading distributor of medical cannabis in Canada and for Canada House Clinics to be the leading Canadian provider of medical cannabis clinic services.

For further information, please visit www.mtlcorp.ca/ or the Company's public filings at www.sedarplus.ca.

Cautionary Statement Regarding Forward-Looking Information.

This press release contains forward- looking statements, including statements that relate to, among other things, the Company's clinic, production and technology businesses, its future plans including the expansion of operational capacities and efficiencies retrofit of facilities, 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, the completion of announced retrofits on time and budget, and availability of applicable approvals and funding required therefore on terms acceptable to the Company, the regulations related to cannabis use under the Cannabis Act (Canada); Company liquidity and capital resources, including the availability of additional capital resources to fund its activities and repay its outstanding indebtedness; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; the ability to execute strategic plans; continued integration of business unit, expansion activities at all our operating locations; and the leveraging of cash flow from operations to accelerate growth and further improve the Company's balance sheet. 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 Listing Statement dated August 14, 2023 and its 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 Canadian Securities Exchange (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.

SOURCE MTL Cannabis Corp.