Mr. Greg Hunter reports

MediphARM STRENGTHENS GLOBAL POSITION IN Q2 2025, WITH 14% REVENUE GROWTH AND 50% INCREASE IN INTERNATIONAL MEDICAL CANNABIS

Medipharm Labs Corp. has released its financial results for the three and six months ended June 30, 2025.

• Q2 revenue of $11.8-million, an increase of 14 per cent over Q2 2024;
• 50-per-cent growth in revenue for international medical cannabis;
• International medical sales now 57 per cent of total revenue;
• Cash balance of $10.4-million at the end of Q2, increased from $8.4-million in Q1 2025;
• Management to host conference call/webcast on Aug. 14, 2025, at 10 a.m. ET.

Medipharm achieved strong year-over-year revenue growth in Q2 2025 and continued to advance its international medical cannabis strategy, supported by a solid balance sheet and strategic cost management. During the quarter, Medipharm successfully defended a proxy contest, with shareholders voting three-to-one in support of the company's board of directors and strategic direction. The company saw record shareholder engagement, demonstrating strong alignment with management's proven strategy for creating long-term value.

"We are pleased with our strong year-over-year revenue growth and continued momentum in international markets," said David Pidduck, chief executive officer of Medipharm Labs. "While the second quarter included the cost and distraction of a proxy contest, our team remained focused and delivered solid results. I want to thank our shareholders again for their continued support and engagement. We are aligned in our vision to build a profitable, cash flow-positive business and remain confident in our path forward."

Greg Hunter, chief financial officer of Medipharm Labs, added: "The second quarter demonstrated the resilience of our commercial strategy, with 14-per-cent year-over-year revenue growth to $11.8-million, and an increased cash balance at the end of Q2, despite the financial impact of the proxy contest. As we move forward, management remains focused on and relentless in driving further revenue growth and continuing to streamline expenses to enhance our profitability profile."

Q2 2025 financial summary

14-per-cent year-over-year revenue growth

Revenue for the second quarter was $11.8-million, an increase of $1.5-million or 14 per cent compared with Q2 2024, driven by continued growth in the company's international business.

International medical cannabis revenue reached $6.7-million, now representing 57 per cent of total revenue. The 50-per-cent year-over-year growth in revenue for international medical cannabis was achieved through product portfolio expansion across multiple geographies.

Canadian adult-use and wellness saw a Q2 2025 revenue of $1.6-million, representing a 6-per-cent year-over-year increase and 19-per-cent sequential growth versus Q1 2025. The company's portfolio expansion into novel metered dose inhalers and water-soluble drops contributed to growth in the Canadian market. Following Q2 2025, the company subsequently expanded its line of inhalers in the domestic market, with plans to launch metered dose inhalers in the near future across several international markets, including Australia and the United Kingdom.

Gross profit, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), general admin and operating expenses

Gross profit for the quarter was $3.3-million, representing 28 per cent of revenue. The decline from prior periods was primarily due to product mix. Management continues to pursue margin improvement through product optimization and production efficiencies.

Operating expenses, adjusted for discrete items including a $2.2-million proxy contest expense, were $4.3-million, achieving a decline both year over year and sequentially. General and administrative expenses, excluding the proxy contest, decreased $800,000 year over year and remained consistent with Q1 2025.

Adjusted EBITDA of negative $600,000 in Q2 2025 declined versus the prior year, however, year-to-date adjusted EBITDA improved to negative $400,000 from negative $1.1-million in the first half of 2024. While adjusted EBITDA tends to fluctuate from quarter to quarter, management expects the overall trend to remain positive.

Strong balance sheet -- virtually debt free

Medipharm ended Q2 2025 with a cash balance of $10.4-million, up from $8.4-million in Q1 2025, supported by the divestiture of its facility in Hope, B.C., on June 5, 2025, for $4.5-million.

The company remains virtually debt free, owns two production facilities outright with an appraised value of more than $15-million and is current on excise duties and trade payables. This positions Medipharm favourably relative to many industry peers, and provides flexibility to finance operations and pursue its path to becoming EBITDA and cash flow positive.

Q2 2025 financial results conference call/webcast Medipharm's executive management team will host a conference call and webcast on Thursday, Aug. 14, 2025, at 10 a.m. (Eastern time) to discuss the company's financial results. The conference call dial in details are as follows:

North America toll-free:  888-330-2454

International:   1-240-789-2714

Conference ID:  4921762 followed by the pound key

Participants are asked to dial in approximately 15 minutes before the start of the call.

A webcast will be available on-line.

For those who are unable to participate on the live conference call or webcast, a replay will be available at the company's website approximately one day after completion of the call.

About Medipharm Labs Corp.

Founded in 2015, Medipharm Labs specializes in the development and manufacture of purified, pharmaceutical-quality cannabis concentrates, active pharmaceutical ingredients (API) and advanced derivative products utilizing a good manufacturing practices certified facility with ISO standard-built clean rooms. Medipharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities for delivery of pure, trusted and precision-dosed cannabis products for its customers. Medipharm Labs develops, formulates, processes, packages and distributes cannabis and advanced cannabinoid-based products to domestic and international medical markets.

In 2021, Medipharm Labs received a pharmaceutical drug establishment licence from Health Canada, becoming the only company in North America to hold a commercial-scale domestic good manufacturing practices licence for the extraction of multiple natural cannabinoids. This GMP licence was the first step in the company's current foreign drug manufacturing site registration with the United States Food and Drug Administration.

In 2023, Medipharm acquired VIVO Cannabis Inc. which expanded Medipharm's reach to medical patients in Canada via Canna Farms medical e-commerce platform, and in Australia and Germany through Beacon Medical Pty. and Beacon Medical GmbH. This acquisition also included Harvest Medical Clinics in Canada which provides medical cannabis patients with physician consultations for medical cannabis education and prescriptions.

The company carries out its operations in compliance with all applicable laws in the countries in which it operates.

The attached table reconciles the company's net operating income (loss) (as reported), and EBITDA and adjusted EBITDA for the periods presented.

We seek Safe Harbor.