MTL Cannabis Corp. Soars with $25.9 Million Q1 Revenue, Announces Transformative Acquisition to Lead Canadian Market

MTL Cannabis Corp. (CSE: MTL) (OTCQB: MTLCF) (FSE: 5NF) is making headlines not just for its impressive first-quarter financial performance but also for a bold strategic move set to redefine its future in the Canadian cannabis landscape. The company proudly announced a staggering $25.9 million in revenue for the first quarter of fiscal 2025, a testament to its robust growth and increasing market presence.

This stellar financial report is further amplified by the revelation of a definitive agreement to acquire all outstanding shares of CannaPiece Group Inc., a transaction poised to forge a true leader in the burgeoning Canadian cannabis market.

The first quarter results paint a vibrant picture of MTL Cannabis’s operational efficiency and market penetration.

Beyond the headline revenue figure, the company reported a substantial gross profit of $11.0 million, translating to a healthy gross margin of 42.6%. This financial discipline is further underscored by an adjusted EBITDA of $2.4 million. While the company recorded a net loss of $0.9 million, the overall financial health, buoyed by $5.7 million in cash and a manageable inventory of $11.3 million, positions MTL Cannabis strongly for future endeavors.

Operational achievements were equally compelling, with MTL Cannabis successfully selling an impressive 5,616 kilograms of cannabis during the quarter.

This represents a significant increase from the 3,858 kilograms sold in the previous quarter, signaling a strong upward trajectory in consumer demand and distribution capabilities. The company’s strategic focus on the dried flower category has clearly paid dividends, resulting in an expanded market share and successful penetration into new key markets such as British Columbia and Manitoba, solidifying its national footprint.

The cornerstone of today's announcement, however, is the proposed all-share transaction to acquire CannaPiece Group Inc.

This transformative acquisition is not merely an expansion; it's a strategic fusion designed to create a cannabis powerhouse. Upon completion, the combined entity is projected to boast over $100 million in proforma revenue, immediately establishing it as a dominant force. The rationale behind this move is clear: to leverage increased scale, optimize operational efficiencies, significantly expand market share, and diversify the product portfolio, ultimately delivering enhanced value to shareholders and consumers alike.

Richard Walker, CEO and Director of MTL Cannabis, expressed immense enthusiasm regarding both the quarterly performance and the future-defining acquisition.

"Our first-quarter results underscore the strength of our core business and our ability to execute effectively in a dynamic market," Walker stated. "The acquisition of CannaPiece Group is a pivotal moment for MTL Cannabis. It's a strategic alignment that brings together complementary strengths, allowing us to accelerate our growth trajectory, capture greater market share, and continue innovating to meet the evolving needs of cannabis consumers across Canada.

We are confident that this merger will unlock significant synergies and create a more robust, agile, and competitive enterprise."

The terms of the proposed transaction stipulate that CannaPiece shareholders will receive shares of MTL Cannabis, ensuring a seamless integration and aligning interests for future success.

This strategic move is expected to bolster MTL Cannabis's leadership team with additional expertise, further strengthening its position as a leading cultivation and distribution entity. With an eye towards sustained growth and market leadership, MTL Cannabis is not just reporting results; it's actively shaping the future of the Canadian cannabis industry, promising exciting developments for investors and consumers alike.