MJardin Group Announces First Quarter 2020 Financial Results

Results in-line with management expectations as well as analyst consensus resulting from focused and measured execution of the strategic plan

DENVER and TORONTO, July 14, 2020 (GLOBE NEWSWIRE) — MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced its financial and operating results for its first quarter ending March 31, 2020. All amounts are expressed in Canadian dollars unless otherwise indicated.

Q1 and YTD 2020 Highlights:

Overall business is on track to achieve measured strategic objectives in 2020;

Revenue amounted to $2.2 million;

Adjusted EBITDA loss of $3.2 million;

Net loss of $8.1 million;

AMI joint venture contributes $0.3 million to net earnings, marking its third consecutive quarter of contribution to MJardin’s financial results;

Improved efficiencies by reducing corporate overhead by 43% compared to comparable period in the prior year;

Continued to advance licensing at Canadian facilities, receiving both a cultivation license for the GRO facility and approval to expand cultivation at the WILL facility;

Sales license received for AMI facility;

Advanced negotiations for a supply agreement with a major Canadian License Holder to sell approximately an incremental 2,000 kilograms of product;

Improvements in management and technology contribute to a significant 14.4% increase in yields for managed service clients;

Warman operations on track to add 3 new high quality varieties per month, with production runs of these new varieties available for sale in Q4 2020.

”During the first quarter we remained focused on the completion of our cultivation assets as we continue to push aggressively towards being prepared to penetrate the Canadian recreational market with our products, and ramping up revenues starting in the second half of 2020,” commented Pat Witcher, CEO of MJardin. “I am very encouraged with the progress our team is making with bringing our assets online as well as exploring strategic growth opportunities which could start contributing to our profitability in the foreseeable future.”

First Quarter Financial Summary

Revenue
The Company’s Managed Services business generated $2.2 million in revenue during the quarter. Canadian cultivation facilities are currently mid way through the grow cycle, as such, no revenue was recognized at these facilities during the first quarter.

Gross Margin