MediPharm Labs Corp.

Estimates are made as of the date hereof based on information currently available to management of MediPharm and on estimates and assumptions made based on factors that MediPharm believes are appropriate and reasonable in the circumstances. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause actual results to differ materially from those expressed or implied by forward-looking statements. Additional information is contained in MediPharm Labs filing, with the Canadian and provincial security regulators, which are available on CDAR at cdar.com. The company's remarks may also contain references to certain non-IFRS financial measures, including EBITDA, adjusted EBITDA, gross profit, and adjusted gross profit. These measures do not have any standardized meaning according to international financial reporting standards, or IFRS, and therefore may not be comparable to similar measures presented by other companies. MediPharm believes that the non-IFRS measures referenced provide information useful to shareholders and investors in understanding their performance and may assist in the evaluation of the combined company's business relative to that of its peers. For more information, please refer to the section titled Reconciliation of Non-IFRS Measures, the Most Recent MD&A of MediPharm, which is available on CDAR. I will now pass the call to David Pidek, CEO of MediPharm. Please go ahead, sir.

Thank you, operator, and welcome everyone to our Q2 2024 earnings call. We are very happy to report today that we're close to profitability being essentially a break even adjusted EBITDA for the quarter. Q2 adjusted EBITDA is $124,000 negative for the quarter. The company and all of our hardworking employees have been strictly focused on getting to this moment. Over the last two years, we've gone through several significant restructurings, sold our MetaFarm Australia facility, acquired an integrated vivo, resolved outstanding litigation, and significantly diversified our business. Recently, we completed the integration of our CannaFarm's medical business into the Barrie operations, resulting in lower costs and better service for our medical patients. We are now in the process of selling our whole facility, which will further improve our financials and generate additional cash. The MetaFarm team has transformed the business from losing over 6 million per quarter in adjusted EBITDA in Q2 2022 to being essentially break even this quarter. International sales for the quarter are over 40% of our revenue. We've grown sales quarter over quarter for the last three quarters. We have $16 million in cash at the end of the quarter and plans in place to sell underused assets that could generate significant additional cash. But obviously we're not satisfied to just break even. We have active plans in place to generate additional revenue and to further reduce costs. On the revenue front, international sales continue to drive growth and profitability. We will continue to focus on growing our business in Europe, Australia, and Brazil. We are hopeful that our pharmaceutical partners file in Brazil will be approved in the next quarter and start to generate revenue in Q4. In Europe, we've made progress on initial contracts in the UK, France, and Poland. The last quarter has also seen progress with our B2B and pharma channel. We've initiated several contracts both domestically and for international markets. We see continued future growth, developing and manufacturing brands for other LPs and global pharma companies. On the cost side, the consolidation of the Hope facility and certain further restructuring efforts already in progress will generate over a million dollars in additional profits on an annualized basis. We believe that further efficiency and cost reduction opportunities still exist that will improve on the already implemented savings targets I just referenced. These include finding further efficiencies in our German supply chain and in our medical and clinical businesses. So now the task moves to driving consistent profitable revenue growth and generating positive cash flows for 2025 in our core businesses. Our strengths in international markets will be a key revenue driver. As mentioned, over 40% of our revenues last quarter came from international markets. Key drivers included newly launched vape and oil SKUs in Australia and good response to our dronabinol launching journey. In addition, several companies have sought us out to supply new GMP SKUs for international markets as regulatory standards tighten in Australia and other markets. Our medical pharmaceutical approach has laid the foundation for growth in international markets with established regulatory and supply chain pathways and reputable pharma and distribution partnerships. We've been leveraging these established paths to drive additional products through existing channels. We have also been leveraging all our quality regulatory and pharmaceutical expertise to assist partners. Several recent examples of this expertise in action include developing and manufacturing products, like our agreement with Aviconna for their SEDS capsule formulation, assisting our Brazilian pharma partner with their file submission, the recent signing of our Remedos inhaler deal, ongoing pharmaceutical product submissions with pharma partners, and continued support of various pharma and academic clinical trials. Being the only natural cannabis site in Canada that is registered and inspected by the U.S. FDA allows us to further expand our pharmaceutical-related business into the U.S. in the future. The rescheduling of cannabis has continued to make good progress in the U.S., which will ultimately lead to more medical research, expanding the total addressable market for Metapharm in this specialized, high-margin niche area. We have a solid balance sheet and strong cash position and should soon generate even further cash through the sale of underutilized facilities. We removed our going concern qualification last quarter, and we intend to pay off $2.1 million, our only significant outstanding debt, next quarter. As mentioned before, unlike many of our peers, we do not have any CRA excise tax exposure, and unlike our peers, we hold very minimal debt. Our balance sheet and cash position now stand out as one of the strongest positions of LPs in our peer group. But industry challenges and ongoing consolidations are continuing. In the last few quarters, we've continued to see multiple LPs filing for CCAA protection. Industry profitability remains a challenge, and there are still far too many operating companies in the industry. In short, there are far too many publicly traded companies in the industry, and the industry as a whole needs to take collective costs out of the system. As a result, industry consolidation will remain a reality. And fortunately, we are in an excellent position to benefit from a thoughtful and prudent M&A approach. We continue to evaluate opportunities that could represent significant upside for shareholders and strengthen the company long-term. Our unique positioning and approach in the medical pharma space and our strong base of growing, profitable international sales makes us a unique partner of choice. Whether as a contract manufacturer, distribution partner, product development partner, or pharmaceutical supplier, MetaPharm is well positioned to grow both organically and through M&A in the near term. I will now turn it over to our President Keith Strong to share some further commercial insights.

Thanks, Dave. Thank you, everyone, for joining us this morning. As we build on our achievements from the first quarter, the second quarter of 2024 continues to showcase our commitment to operational excellence and strategic growth in the global cannabis market. The whole company is motivated and excited as we are closing the gap to get back to profitability. This quarter, we fortified our innovative product portfolio through a new licensing agreement with Remedos Aerosol, granting us exclusive rights to their advanced cannabis product technology. This expansion enhances our offering across domestic and international medical cannabis markets. We will assume their existing adult use sales in Q3 and start GMP shipments of these products internationally in Q4. Also, in partnership with Avicana, a leader in cannabis research and formulation, we have been developing the scale-up and commercialization of a new self-emulsifying drug delivery system in capsule format. We are pleased to announce that we have now completed the scale-up, validation, and manufacturing of the first batches. Distribution of these new products are now available to Canadian cannabis patients. Our international portfolio continues to expand. In July, we began delivery of high-potency medical cannabis flower under our Beacon Medical brand in Germany. This is in response to favorable regulatory changes and is expected to complement our growing sales in that market. Additionally, our market share for GMP-based in Australia is now third based on units sold and patient revenue, just nine months after their launch. Our international sales continue to grow and reach 4.5 million in the quarter. Trinab and all sales have continued their strong performance from Q1, doubling to a total of 1.9 million year-to-date. This revenue stream enjoys higher margins and is helping our drive towards profitability. Our sales to our German pharma partner, Stata, also had a strong quarter as oil and flour units to Stata patients in Germany have increased 35% in the first six months of 2024 compared to the same period in 2023. In compliance and quality, April was significant for us with the successful completion of two EUGMP inspections. Both our Napanee and Barrie facilities were inspected by Germany's LAVG Health Department. I am pleased to report that our renewed EUGMP certifications were issued by the LAVG on July 1, 2024. Another milestone was reached in April with our submission of a drug master file for CBD API to Health Canada. This submission allows for our current and future pharmaceutical partners to reference MediPharm's high-quality CBD API in their drug applications, echoing the DMF we filed with the US FDA back in 2021. As we continue to advance on these fronts, our focus remains on innovation, strategic global market expansion, and enhancing operational efficiencies. These pillars not only drive our financial performance, but strengthen our position as a leader in the global cannabis market. I'll now pass the call to Greg to go over financial details.