Cansortium Slashes Outlook as Second Quarter Revenues Soar 24% to $ 16.5 Million – New Hashish Firms

Cansortium announces financial results for the second quarter of 2021
  • Q2 Revenue Increases 24% Year-Over-Year to $ 16.5M; Adjusted EBITDA increased ~ 2x to $ 5.2 million
  • Management will host a conference call tomorrow at 8:30 am Eastern time

MIAMI, August 24, 2021 / PRNewswire / – Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) (“Cansortium” or the “Company”), a vertically integrated cannabis company operating under the Fluent ™ brand, today announced its second quarter financial results completed June 30, 2021, as well as current operational highlights. Unless otherwise stated, all results are in US dollars.

In the second quarter, we continued to drive growth and profitability in our key markets, which was reflected in another record sales in May.

CEO Robert Beasley

Our ongoing focus on providing differentiated, high quality flower and wellness products has been well received by our patients. In addition, we now offer several boutique strains that have never been sold in the US Florida Market.

Cansortium got its balance sheet in the quarter with debt and equity financing of nearly. clearly improved $ 90 millionwhich enabled the company to cancel old debts and extend the maturity to 2025 as well as redeem all outstanding convertible bonds. Cansortium now has the capital and flexibility to carry out its expansion plans.

Mr. Beasley continued: “Our core activities in Florida work well and our expansion plans are fully funded. With multiple projects in. there were minor supply chain and construction delays Floridawhich will delay the expected time of our production start-up and push back our schedule by about two months. In addition, we have delays in the Michigan Market that, albeit a small market for us, will also affect our forecast for 2021 as we continue to keep products for sale to hedge against volatile prices.

“Overall, we continue to expect significant growth in 2021. Our revised outlook for 2021 is $ 70-80 million sales with $ 18-26 million adjusted EBITDA1, which reflects a growth of approx. 43% or 114% compared to the previous year. We see upside potential in these numbers if the construction market opens earlier than our current forecasts.

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1 Adjusted EBITDA is a non-IFRS financial measure that does not have a standardized meaning as required by IFRS and may not be comparable to similar measures used by other companies. The company calculates Adjusted EBITDA from EBITDA plus (minus) unrealized loss (gain) from embedded derivatives plus (minus) certain one-time non-operating expenses as determined by management. A reconciliation from adjusted EBITDA to net loss is included in the attached financial plans.

“Further progress on various initiatives includes the opening of a new pharmacy in Mechanicsburg, Pennsylvania last week and the securing of our third Pennsylvania location in Annville, which is expected to open by the end of the year. In addition, we expect our 27th pharmacy to open in Florida by the end of the third quarter and have identified four additional locations for further growth in the first half of 2022. “

Financial highlights of Q2 2021 (compared to Q2 2020)

  • Sales increased by 24% $ 16.5 million compared to $ 13.2 million.
  • Florida Sales increased by 22% $ 14.6 million compared to $ 12.0 million.
  • Adjusted gross profit2 increased 24% $ 10.7 million or 65.1% of sales compared to $ 8.7 million or 65.5% of sales.
  • Adjusted EBITDA roughly doubled to $ 5.2 million or 31.8% of sales compared to $ 2.6 million or 19.7% of sales.
  • at June 30, 2021, the company had approx. $ 26 million of cash and cash equivalents and $ 71 million of total debt with approximately 264 million fully diluted shares outstanding (based on the treasury stock method and the share price on June 30, 2021).

Current operational highlights

  • Started Freshwater, a new line of premium whole flower cannabis.
  • Hired a new head of cultivation.
  • Appointment of several new board members, including Mark Eckenrode, Alex Spiro, and the company’s new CEO, William Smith.
  • In July, the company opened its 26th Florida Pharmacy in Deerfield Beach.
  • All convertible bonds from the company’s capital structure were converted into shares in the second quarter. A total of approx. $ 18.0 million the debt was converted into common stock in the company.
  • The company sold approximately 2,600 lbs. from biomass Michigan Existed in July.

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2 Adjusted Gross Income is a non-IFRS financial measure that does not have a standardized meaning required by IFRS and may not be comparable to similar measures used by other companies. The entity calculates Adjusted Gross Profit on gross profit plus (minus) changes in the fair value of the biological assets, as shown in the Consolidated Income Statement.

Outlook for 2021

The company is revising its 2021 outlook for revenue of $ 70 million to $ 80 million and Adjusted EBITDA of between $ 18 million and $ 26 million. This compares to approximately $ 52 million in revenue and $ 10 million in adjusted EBITDA in 2020.

In Florida, Cansortium continues to assume that a total of 27 pharmacies will be operational by the end of 2021 and has identified four more locations that will open in 2022. In Michigan, the company holds 900 lbs. Flowers prepared for sale. However, due to price volatility, the company adjusts the sales cycle to achieve optimal value.

The company’s unaudited consolidated financial statements and accompanying explanations, along with the Management Discussion and Analysis (MD&A), will be available under the company’s profile on SEDAR at www.sedar.com and can also be accessed via the Investor Relations section of the company’s website at www.getfluent.com.

telephone conference

The company will host a conference call and live audio webcast tomorrow at 8:30 am Eastern Time to discuss its financial results and operational highlights.

Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10016120
Link: Cansortium Q2 2021 earnings call

Please call the conference phone number 5-10 minutes in advance. An operator will register your name and organization. If you have difficulty connecting to the conference call, please call Elevate IR at (949) 200-4603.

The conference call will also be available for replay through the News & Events section of the company’s Investor Relations website at https://investors.getfluent.com/.

About Cansortium Inc.

Cansortium is a vertically integrated cannabis company with licenses and operations in Florida, Pennsylvania, Michigan, and Texas. The company operates under the Fluent ™ brand and aims to be one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium’s relentless commitment to operational excellence in cultivation, manufacturing, distribution and retailing. The company is headquartered in Miami, Florida.

Cansortium Inc. common stock trades on the CSE under the symbol “TIUM.U” and on the OTCQX Best Market under the symbol “CNTMF”. More information about the company can be found at www.getfluent.com.

Original press release

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Published by NCV Newswire

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