Cansortium Cuts Loss YoY, Reports 14% Increase In Q1 Revenue Driven By Florida Cannabis Sales Ahead Of Merger With RIV Capital

Author: Jelena Martinovic | May 31, 2024 11:34am

Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF) a vertically-integrated, multi-state cannabis company operating under the FLUENT brand, announced its financial and operating results Thursday for the first quarter ended March 31, 2024.

"We delivered another quarter of year-over-year revenue growth and positive cash flow generation during the first quarter as we continued to execute on our growth objectives," CEO Robert Beasley said. "We are making the critical investments needed to lay the foundation for growth and support our future plans and remain excited about the opportunities ahead."

The first quarter earnings announcement comes on the heels of the news that Cansortium opted to merge with RIV Capital Inc. (OTC:CNPOF). The combined company will operate in Florida, New York, Texas and Pennsylvania, covering 25% of the U.S. population with eight cultivation and processing facilities and 42 retail dispensaries.

"Looking ahead, we are excited about the business combination with RIV Capital announced this morning, laying the groundwork for a presence in four of the five largest population states in the country upon closing," Beasley said.

As yet another earnings reporting season wraps up it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

Q1 2024 Financial Highlights

Revenue increased 14% year-over-year to $25.2 million compared to $22.1 million in the prior year’s period.
Florida revenue increased 16% year-over-year to $21.1 million compared to $18.2 million.
Adjusted gross profit was $12.3 million or 48.6% of revenue, compared to $10.2 million or 46.4% of revenue.
Adjusted EBITDA came in positive at $6.8 million compared to $5.8 million adjusted EBITDA gain in the prior year's period, with the increase primarily driven by higher sales in Florida.
Cash flow from operations for the three months ended March 31, 2024, was $4.1 million compared to $5.1 million in the prior year's period.
On March 31, 2024 the company had roughly $8.5 million of cash and cash equivalents and $62.9 million of total debt, with approximately 300 million shares outstanding.
Net loss decreased to $4.2 million from $7.4 million in the first quarter of fiscal 2023.