Mr. Michael Perron reports

MTL CANNABIS CORP. REPORTS THIRD QUARTER RESULTS WITH $25.6 MILLION OF REVENUE

MTL Cannabis Corp. has filed the financial statements as at and for the three-month and nine-month periods ending Dec. 31, 2024, and 2023. Complete details may be found at SEDAR+.

Third quarter 2025 consolidated financial highlights for MTL

Income statement:

• Revenue of $25,599,316, an improvement of $1,893,362, or 8 per cent, compared with $23,705,954 in the same quarter of last year.
• Net revenue of $19,955,055, an improvement of $623,431, compared with $19,331,624 in the same quarter of last year.
• Gross margin before fair value adjustments of 52 per cent, an increase of 1 per cent, compared with 51 per cent in the same quarter of last year.
• Operating income of $914,770, a decrease of ($864,570), compared with $1,779,340 in the same quarter of last year.
• Net income and comprehensive income of ($1,220,589), a decrease of ($1,673,593), compared with $453,004 in the same quarter of last year.

Statement of cash flows:

• Net cash inflows from operating activities of $13,130,831, compared with $9,994,394 in the same period of last year.
• Net cash used in investing activities of ($3,633,271), compared with ($1,687,025) in the same period of last year.
• Net cash used in financing activities of ($7,355,501), compared with ($7,690,329) in the same period of last year.
• Overall net cash increased to $3,494,194, an improvement of $2,142,059, from $1,352,135 at the beginning of the period.

Additionally, the company was able to demonstrate retained earnings of $1,290,337, compared with an accumulated deficit of ($614,165) as of March 31, 2024.

Year-to-date highlights (nine months):

• Revenue of $77,876,082, an improvement of $13,091,464, or 20 per cent, compared with $64,784,618 in the same period of last year.
• Net revenue of $61,546,185, an improvement of $10,275,004, compared with $51,271,181 in the same period of last year.
• Gross margin before fair value adjustments of 54 per cent, an increase of 11 per cent, compared with 43 per cent in the same period of last year.
• Operating income of $9,968,670, an improvement of $5,513,990, compared with $4,454,680 in the same period of last year.
• Net income and comprehensive income of $2,231,502, a decrease of ($1,437,266), compared with $3,668,768 in the same period of last year.

Management commentary

"Our resilient strategy underpins the strong results we've delivered quarter over quarter, demonstrating that our high-quality products and leading industry performance are driving enhanced value for shareholders," said Michael Perron, chief executive officer of MTL. "With robust opportunities for continued growth, our company is well positioned to deliver superior products for our expanding client base both domestically and internationally."

About MTL Cannabis Corp.

MTL Cannabis is the parent company of Montreal Medical Cannabis Inc., a licensed producer operating from a 57,000-square-foot licensed indoor grow facility in Pointe Claire, Que.; Abba Medix Corp., a licensed producer in Pickering, Ont., that operates a leading medical cannabis marketplace; IsoCanMed Inc., a licensed producer in Louiseville, Que., growing best-in-class indoor cannabis, in its 64,000-square-foot 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, prerolls 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 good agricultural collection practice quality cannabis.

It is MTL Cannabis's goal for Abba Medix 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.

We seek Safe Harbor.