MTL Cannabis Corp. Reports Second Quarter Results with $25.4 Million of Revenue, Strong Gross Margins, and Strengthened Balance Sheet

MTL Cannabis Corp. Reports Second Quarter Results with $25.4 Million of Revenue, Strong Gross Margins, and Strengthened Balance Sheet

PICKERING, ON, Nov. 28, 2025 /CNW/ - MTL Cannabis Corp. (CSE: MTLC) (OTCQX: MTLNF) ("MTL" or the "Company") is pleased to report it has filed its financial statements as at and for the three-month and six-month periods ending September 30, 2025, and 2024. Complete details may be found on the Company's SEDAR+ profile at www.sedarplus.ca.

Second Quarter 2025 Consolidated Financial Highlights:

• The Company generated revenue of $25,365,570 during the second quarter of fiscal 2026, compared to $26,434,502 in the same quarter of last fiscal year.
• The Company generated net revenue of $20,613,664 during the second quarter of fiscal 2026, compared to $20,869,898 in the same quarter of last fiscal year.
• The Company generated gross margins before fair value adjustments of 50% during the second quarter of fiscal 2026, an increase of 7% over the previous fiscal quarter, and a decrease of 4%, compared to 54% in the same quarter of last fiscal year.
• The Company continues to generate positive Adjusted EBITDA of $2,223,919 during the second quarter of fiscal 2026.

Management Commentary:

"We are incredibly proud of our continued progress as a business, demonstrating the strength of our core operations with stable revenue, strong margins, and continued EBITDA performance. We continue to make progress with the realignment of our internal supply chain to enhance profitability and internal capacity, notably the successful transition of our medical fulfillment operations from Pickering to Montreal, as well as continued investments into cultivation technologies and streamlining our asset portfolio, which we expect will have meaningful and positive contributions towards our future margins and profitability." said Michael Perron, CEO of MTL. "At the same time, we have been able to successfully streamline our capital structure, reducing legacy obligations and positioning the company for sustainable long-term growth. This strategic reset aligns our balance sheet with the performance we are delivering across the business. We look forward to continuing to enhance our operations throughout the rest of the year as we position MTL to take advantage of future growth initiatives."

Summary of New Credit Agreement:

On July 30, 2025, the Company closed a credit agreement (the "Credit Agreement") with a Canadian Schedule 1 Bank to assist with capital expenditures, finance working capital, and refinance existing debt. The Credit Agreement is comprised of the following facilities:

• An uncommitted demand revolving credit facility of up to $4,000,000 (the "RT Facility").
• A committed non-revolving term credit facility, by way of a single drawdown, in the amount of $6,750,000 (the "NRT 1 Facility").
• A committed non-revolving term credit facility, by way of a single drawdown, in the amount of $12,150,000 (the "NRT 2 Facility").
• An uncommitted delayed draw non-revolving term credit facility, available by way of one or more drawdowns, in the amount of $4,120,000 (the "DDTL Facility").

All facilities (the "Credit Facilities") mature on July 28, 2028, and bear interest based on the Canadian Overnight Repo Rate Average plus an applicable margin, or the Canadian prime rate plus an applicable margin. The Credit Facilities are secured against (i) all of the present and after-acquired undertakings, property and assets of the Company and its material operating subsidiaries, and (ii) the property located at 551 Rue Saint-Marc, Louiseville, QC, by a first-ranking collateral mortgage.

A copy of the Credit Agreement may be found on the Company's SEDAR+ profile at www.sedarplus.ca.

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 EBITDA and 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 net income (loss) from continuing operations, as reported, before interest, taxes, depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA before 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 provides a reconciliation of Net Income (loss) as reported under IFRS to EBITDA and Adjusted EBITDA for each of the three-month periods ended September 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 use of the Credit Facilities to assist with future capital expenditures, finance working capital, and refinance existing debt assumed; the Company taking advantage of future growth initiatives; continuing enhancement of the Company's operations; future growth of the Company; 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.