MediPharm Labs Reports Positive Q2 2026 Net Income and Second Consecutive Quarter of Positive Adjusted EBITDA

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SOURCE MediPharm Labs Corp.

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For further information, please contact: MediPharm Labs Investor Relations,

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Notes and References

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Non-IFRS Measures

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This press release contains references to “Adjusted EBITDA” which is a non-IFRS financial measure. Management believes that this supplementary non-IFRS financial measure provides useful additional information related to the operating results of the Company. This non-IFRS financial measure is not recognized under IFRS and, accordingly, users are cautioned that this measure should not be construed as an alternative to net income (loss) and gross profit determined in accordance with IFRS as measures of profitability or as alternatives to the Company’s IFRS-based Financial Statements. The non-IFRS measure presented may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is a measure of the Company’s overall financial performance and is used as an alternative to earnings or income in some circumstances. Adjusted EBITDA is essentially net income (loss) with interest, taxes, depreciation and amortization, non-cash adjustments and other unusual or non-recurring items added back in. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, finance fees, gain in revaluation of derivative liabilities, taxes, government grants including rent and wage subsidies, one-off transactions, impairment losses on inventory and on fixed assets and intangibles, write down of deposits and share-based compensation. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. Adjusted EBITDA, as used within the Company’s disclosure, may not be directly comparable to Adjusted EBITDA used by other reporting issuers. Adjusted EBITDA does not have a standardized meaning and the Company’s method of calculating such non-IFRS measure may not be comparable to calculations used by other companies bearing the same description.

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The following table reconciles the Company’s net operating income (loss) (as reported), and Adjusted EBITDA for the periods presented:

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(a) This represents the fair value realized on sale of cannabis inventory acquired in a business combination. 
(b) This relates to certain fees and expenses associated with the proxy contest in connection with the Company’s annual shareholder meeting held June 16, 2025, and ongoing legal expenses related to the Apollo Claim. 
(c) This includes non-recurring fees, expenses associated with the evaluation of potential mergers and acquisitions, and fees related to reorganization of legal entities. 
(d) This relates to unusual, non-recurring transactions that are not reflective of the Company’s ongoing operating performance.

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Cautionary Note Regarding Forward-Looking Information

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This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the significance and implications of the LiBBY study results and the potential therapeutic benefits of MediPharm’s proprietary formulation; the Company’s ability to obtain, maintain and benefit from intellectual property protection relating to the formulation, including patent applications filed; the ability to use study data for future regulatory submissions and development activities; the potential for future clinical development programs, additional indications, regulatory submissions and strategic collaborations; management’s ability to continue to grow international medical revenue and reduce costs to drive growth and long-term value for the Company; MediPharm’s ability to continue to supply international medical cannabis markets; the anticipated shipment of purchase orders in Brazil and New Zealand; the future of MediPharm’s foreign drug manufacturing site registration; the anticipated effects of the rescheduling of cannabis under the U.S. Controlled Substances Act; the effects of the Veterans Affairs Canada reimbursement change and management’s mitigation initiatives; the appraised value of the Company’s production facilities; the launch of new product formats and formulations and the timing of related provincial listings; product optimization and improvement of production efficiencies; and MediPharm’s path to sustained Adjusted EBITDA and cash flow positive results. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm to obtain adequate financing; the delay or failure to receive regulatory approvals; changes in government reimbursement programs; changes in prescribing behaviour and regulatory enforcement in the markets in which the Company operates; the possibility that future clinical studies may not replicate or support the findings observed in the LiBBY study; and other factors discussed in MediPharm’s filings, available on the SEDAR+ website at www.sedarplus.ca. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

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