Canada-Based Mettrum Health Doubles its Capacity

Mettrum Health Corp. is expanding and defying all expectations by doubling its capacity. The Toronto-based company holds three licenses from Health Canada under the Marihuana for Medical Purposes Regulations (MMPR). In addition, its subsidiary Mettrum Hempworks is a licensed producer and distribution of industrial cannabis (hemp) products.

The company is set to double its total production capacity, increasing from 6,000 kg. per year to 12,000 kg. before the end of the fiscal year ending March 31, 2017. The company’s first facility is located at Bowmanville, Ontario.

Mettrum Originals is the company’s edible arm and is licensed under the Industrial Hemp Regulations (Canada). In September, Mettrum entered into an agreement with Cannabis Care Canada to launch a second location on Bennett Road. As part of the agreement, CCC will assume operations at the new location.

“Given the scale of our operations at Bennett Road South and Creemore, it was very timely to find a purchaser for Bennett Road North who is also a great strategic partner,” CEO Michael Haines told Yahoo Finance. “We are extremely excited to enter into this agreement which does three important things for Mettrum. First, it allows us to continue to lower operating costs by streamlining and consolidating our operations at our new headquarters. Second, it strengthens our already robust balance sheet in a non-dilutive manner. Lastly, and most importantly, it greatly enhances the scale of our business through our supply agreement, and access to a new market, with Cannabis Care Canada Inc.”

The growth is impressive. During the first quarter, the company’s revenues increased 54 percent. The average retail price per gram increased to C$8.88 during the first quarter that ended June 30, 2016, from C$8.23 during the fourth quarter.

Mettrum ended August with around C$27 million in cash on its books and a market cap of C$248 million.