Financial Data and Key Metrics Changes - Net revenue increased by 7% to CAD 94.2 million, supported by a record 12% growth in global medical cannabis revenue [16][17] - Adjusted gross margin rose by 100 basis points to 62%, with adjusted gross profit reaching CAD 55.6 million, a 6% increase [16][17] - Adjusted EBITDA was CAD 18.5 million, and adjusted net income was CAD 7.2 million, reflecting strong profitability [5][17] - Free cash flow was CAD 15.5 million, with a strong balance sheet showing CAD 154 million in cash and no cannabis business-related debt [5][17] Business Line Data and Key Metrics Changes - Medical cannabis net revenue rose by 12% to CAD 76.2 million, comprising 81% of total net revenue, compared to 77% in the prior year [17][18] - Consumer cannabis net revenue decreased by 48% to CAD 5.2 million, attributed to a strategic shift towards higher-margin global medical cannabis [18] - Plant propagation net revenue increased by 27% to CAD 11.3 million, but adjusted gross margin fell to 16% due to increased costs [18][19] Market Data and Key Metrics Changes - International medical cannabis revenue grew by 17%, with Germany being a primary driver of this growth [4][17] - The Australian market is projected to become a AUD 1 billion opportunity, with efforts to shift sales towards premium products [11] - In Poland, the company maintained its number one position in market share, benefiting from increased annual import limits [12][13] Company Strategy and Development Direction - The company is focusing on exiting select markets within the lower Canadian consumer cannabis segment to prioritize higher-margin global medical cannabis [7][15] - A divestiture of the lower-margin plant propagation operations is planned to enhance profitability and streamline operations [7][39] - The company aims to expand its leadership in global medical cannabis, reinforcing its presence in Canada, Europe, Australia, and New Zealand [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the global medical cannabis market, projected to surpass $9 billion [23] - The company is adapting to regulatory changes in markets like Germany and Poland, ensuring continued access to high-quality medical cannabis [10][42] - Future guidance anticipates annual global medical cannabis net revenue to increase to between CAD 269 million and CAD 281 million, driven by 10%-15% growth [21][22] Other Important Information - The company filed a prospectus supplement for a new At-the-Market equity program, allowing the issuance of up to $100 million in common shares for strategic purposes [8] - The company maintains a strong competitive position due to its regulatory certifications and GMP manufacturing capabilities [6][10] Q&A Session Summary Question: Follow-up on the select market exit in Canada - Management indicated that exiting these markets will be beneficial to overall financial results, reallocating resources to higher-margin international markets [25][26] Question: Impact of premiumization strategy in Australia - Management stated that the shift towards premium products is not disruptive and is expected to enhance margins [29][30] Question: Strategic decision to exit plant propagation - The focus remains on global medical cannabis, with divestiture seen as a way to allocate resources more effectively [37][39] Question: Clarification on global medical cannabis revenue guidance - Management clarified that the guidance reflects total revenue, including the impact of the divestiture of Bevo [47][48] Question: Supply chain and cultivation capacity - Management confirmed that the majority of products sold are produced in-house, with a focus on maintaining GMP standards [76][78]