Cansortium Reports Third Quarter 2024 Results
Cansortium Reports Third Quarter 2024 Results . (MENAFN - PR Newswire) 
  
  
 
 
 
 
 
   
  Q3 Revenue improves 3.5% Year-over-Year to $26.1 million  
  Delivers $7.5 million in Adjusted EBITDA, representing 29% margin  
  Generates $9.6 ...
América - MenaFN
(MENAFN- PR Newswire)

Q3 Revenue improves 3.5% Year-over-Year to $26.1 million

Delivers $7.5 million in Adjusted EBITDA, representing 29% margin Generates $9.6 million in Positive Cash Flow from Operations TAMPA, fLA., Nov. 29, 2024 /PRNewswire/ -

Cansortium

(CSE: TIUM.U) (OTCQB: CNTMF ) ("Cansortium" or the "Company"), a vertically-integrated, multi-state cannabis company operating under the FLUENTTM brand, today announced its and operating results for the

quarter ended September 30, 2024. Unless otherwise indicated, all financial results are presented in U.S. dollars. "We completed the third quarter by delivering our 12th consecutive quarter of positive cash flow from operations as well as steady year over year revenue growth," said CEO Robert Beasley. "Our focus on continuous improvement and gaining efficiencies has continued to be a positive contributor to our solid performance." Mr. Beasley added, "In Florida, we have increased our cultivation canopy to remain in balance with strong medical market demand and anticipate adding four new stores in 2025 while expanding our brand and product portfolio. Fortunately, our growth strategy did not depend on the outcome of Amendment 3 passing in Florida and we

have made no financial commitments which depended on the adult use measure. FLUENT remains committed to the mission of serving the medical cannabis patients of Florida." Mr. Beasley concluded, "Looking ahead, with our primary loan refinancing completed and our business combination with RIV Capital set to close by year end, our business is exceptionally well positioned heading into 2025. We have already commenced integration activities and are looking forward to leveraging the combined talent of both teams to scale our market share in the state of New York. Additionally, we also continue to seek out opportunities to drive revenue growth in both Pennsylvania and Texas." Q3 2024 Financial Highlights (vs. Q3 2023)

Revenue increased 3.5% to $26.1 million compared to $25.3 million.

Florida revenue increased 3.6% to $22.0 million compared to $21.3 million.

Gross profit before fair value adjustments1 was $14.3 million or 54.6% of revenue, compared to $13.7 million or 54.0% of revenue.

Adjusted EBITDA was $7.5 million compared to $7.7 million, with the decrease primarily driven by higher general and administrative expenses.

Cash flow from operations for the three months ending September 30, 2024, was $9.6 million compared to $7.1 million in the prior year primarily. On September 30, 2024, the Company had approximately $8.9 million of cash and cash equivalents and $74.1 million of total debt outstanding, with approximately 303 million shares outstanding. Recent Operational Highlights

In Florida, Cansortium currently operates 35 stores and anticipates opening 4 new stores by the end of 2025.

The Ruskin, FL Facility is now operational and Cansortium completed its first harvest in June 2024, adding approximately 14,000 sq ft of cultivation canopy.

The Rosa, FL Facility is under construction, and the Company anticipates it will complete its first harvest by Q2 2025, adding another 7,000 sq ft of canopy to Cansortium's Florida footprint.

There was no major damage to the Company's facilities or retail locations as a result of the hurricane's which impacted Florida in 2024. Subsequent to quarter end, the Company completed a new senior secured credit agreement of up to $96,500,000 with Chicago Atlantic Admin, LLC, refinancing its existing $71,000,000 senior secured term loan that was set to mature May 29, 2025. RIV Transaction Update and Conference call The Company has continued its integration activities with RIV Capital Inc. ("RIV Capital") and, with all required regulatory approval obtained, expects to complete the business combination in early December 2024. In connection with the closing, the Company expects to host a conference call to discuss the proforma business as well as its financial and operating results for the third quarter ended September 30, 2024. Details will be announced upon completion of the RIV Capital transaction.

___________________________ 1 Gross profit before fair value adjustments is a

non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates gross profit before fair value adjustments from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.

About Cansortium Inc.

Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas.

The Company operates under the FluentTM brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Tampa, Florida.

Cansortium Inc.'s Common Shares trade on the CSE under the symbol "TIUM.U" and on the OTCQB Venture Market under the symbol "CNTMF". For more information about the Company, please visit

.

Forward-Looking Information

Certain information in this news release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent the Company's expectations, estimates, and projections regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control.

Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at . These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

For further information: .

Company Contact

Robert Beasley, CEO

(850) 972-8077

href="" rel="nofollow" getFLUEN

Investor Relations Contact

[email protected]

Cansortium Inc.

Consolidated Statements of Financial Position (unaudited)

As of September 30, 2024, and December 31, 2023



(Amounts expressed in thousands of United States Dollars unless otherwise stated)











September 30,





December 31,









2024

2023 Assets











Current assets











Cash





$















8,932

$









10,521 Trade receivable





51

215 Inventory, net

Note 3

13,419

9,244 Biological assets

Note 4

2,951

331 Prepaid expenses and other current assets

Note 5

2,794

1,882 Total current assets





28,147

22,193













Property and equipment, net

Note 6

31,476

27,642 Intangible assets, net

Note 7

94,714

93,593 Right-of-use assets, net

Note 12

32,692

31,943 Goodwill

Note 8

1,525

1,525 Other assets





1,373

907 Total assets





$



189,927

$



177,803













Liabilities











Current liabilities











Trade payable





$















8,035

$











5,525 Accrued liabilities





5,425

9,779 Income taxes payable





3,337

22,009 Derivative liabilities

Note 10

817

9,109 Current portion of notes payable, net

Note 11

63,989

213 Current portion of lease liabilities

Note 12

3,178

2,872 Total current liabilities





84,781

49,507













Notes payable, net

Note 11

7,414

61,189 Lease liabilities

Note 12

38,924

37,242 Deferred tax liability





22,303

17,398 Uncertain tax position





38,816

- Other long-term liabilities

Note 21

3,447

3,882 Total liabilities





195,685

169,218













Shareholders' equity











Share capital

Note 13

183,690

183,690 Share-based compensation reserve





7,158

6,739 Equity conversion feature





6,914

6,677 Warrants

Notes 13

29,634

29,634 Accumulated deficit





(232,820)

(217,821) Foreign currency translation reserve





(334)

(334) Total shareholders' equity







(5,758)

8,585













Total liabilities and shareholders' equity





$











189,927

$









177,803

Cansortium Inc.

Statement of Operations (unaudited)

For the three- and nine-months ending September 30, 2024 and 2023



(Amounts expressed in thousands of United States Dollars unless otherwise stated)











For the three months ended





For the nine months ended









September 30,

2024

September 30,

2023

September 30,

2024

September 30,

2023 Revenue, net of discounts





$











26,147

$



25,260

$



78,643

$



71,746 Cost of goods sold





11,859

11,607

38,315

34,882 Gross profit before fair value adjustments





14,288

13,653

40,328

36,864





















Fair value adjustments on inventory sold





(2,099)

4,492

(2,259)

9,044 Unrealized gain (loss) on changes

ccccin fair value of biological assets

Note 4

(611)

(3,627)

8,704

(11,719) Gross profit





11,578

14,518

46,773

34,189





















Expenses



















General and administrative

Note 14

3,913

2,705

12,483

7,588 Sales and marketing

Note 14

5,846

5,354

17,298

14,928 Depreciation and amortization





1,737

2,003

5,247

5,780 Share-based compensation





228

228

419

643 Total expenses





11,724

10,290

35,447

28,939





















Income from operations





(146)

4,228

11,326

5,250





















Other expense (income)



















Finance costs, net

Note 19

5,154

4,562

14,700

13,135 Loss (gain) on change in fair value of ccccderivative liability

Notes 10

(898)

426

(8,292)

262 Gain on debt settlement





-

(116)

-

(116) Loss on disposal of assets





-

-

212

70 Loss from termination of a contract





-

2

5

6 Other miscellaneous income





-

-

-

67 Total other (income) expense





4,256

4,874

6,625

13,424





















Income (loss) before income taxes





(4,402)

(646)

4,701

(8,174)





















Income tax expense

Note 9

7,379

4,662

19,700

9,867





















Net comprehensive loss





$









(11,781)

$











(5,308)

$











(14,999)

$









(18,041)





















Net loss per share



















Basic and diluted - continuing operations





$



(0.04)

$













(0.02)

$



(0.05)

$



(0.06)





















Weighted average

number of shares



















Basic number of shares





300,522,916

298,963,366

299,617,665

290,693,488 Diluted number of shares





341,807,051

358,650,277

341,616,139

345,906,048

Cansortium Inc.

Consolidated Statements of Cash Flow (unaudited)

For the nine months ended September 30, 2024 and 2023



(Amounts expressed in thousands of United States Dollars unless otherwise stated)





For the nine months ended



September 30,

2024 September 30,

2023 Operating activities



Net loss from continuing operations $











(14,999) $











(18,041) Adjustments to reconcile net loss to net cash provided by operating activities:



Unrealized loss (gain)

on changes in fair value of biological assets (8,704) 11,719 Realized loss (gain) on changes in fair value of biological assets 2,259 (9,044) Share-based compensation 419 644 Depreciation and amortization 11,366 10,961 Accretion and interest of convertible debentures 426 400 Accretion and interest of term loan 10,372 9,534 Interest of equipment loan - 37 Interest on cultivation facility loan 61 - Interest on insurance financing 9 - Interest on convertible promissory note 224 - Loss on disposal of assets 212 70 Change in fair market value of derivative (8,292) 262 Interest on lease liabilities 3,588 3,041 Deferred tax expense 4,835 (1,003) Uncertain tax position 38,816 - Changes in operating assets and liabilities:



Trade receivable 164 (20) Inventory 10,944 11,339 Biological assets (11,294) (12,609) Prepaid expenses and other current assets 960 (497) Right of Use Assets/Liabilities (3,520) 455 Other assets (466) (66) Trade payable 2,510 (3,275) Accrued liabilities (4,354) (205) Other long-term liabilities (435) 2,531 Income taxes payable (18,672) 10,872 Net cash provided by operating activities 16,429 17,105





Investing activities



Purchases of property and equipment (10,543) (4,500) Purchase of intangible assets (1,332) - Net cash used in investing activities (11,875) (4,500)





Financing activities



Net proceeds from issuance of shares and warrants - 2,993 Net proceeds from insurance financing - 800 Net proceeds from convertible note 3,983 - Payment of lease obligations (2,126) (4,800) Net proceeds from auto and equipment loan 48 - Principal repayments of notes payable (8,048) (7,852) Net cash used in financing activities (6,143) (8,859) Net increase (decrease) in cash (1,589) 3,746 Cash, beginning of period 10,521 8,359 Cash, end of period $













8,932 $













12,105

Cansortium Inc.

Adjusted EBITDA Calculation (unaudited)

(Amounts expressed in thousands of United States Dollars unless otherwise stated)



Three months ended

September 30,

2024 September 30,

2023 Variance Net loss $









(11,781) $









(5,308) $









(6,473) Finance costs, net 5,154 4,562 592 Income taxes 7,379 4,662 2,717 Depreciation and amortization 3,801 3,829 (28) EBITDA $











4,553 $











7,745 $









(3,192)

















Three months ended

September 30,

2024 September 30,

2023 Variance EBITDA $











4,553 $











7,745 $









(3,192) Change in fair value of biological assets 2,710 (865) 3,575 Change in fair market value of derivative (898) 426 (1,324) Professional fees(1) 529 - 529 One-time employee costs(2) 162 - 162 Loss on debt settlement - (116) 116 Share-based compensation 228 228 - Other non-recurring expense(3) 243 263 (20) Adjusted EBITDA $











7,527 $











7,681 $











(154)

















Nine months ended

September 30,

2024 September 30,

2023 Variance Net loss $









(14,999) $









(18,041) $











3,042 Finance costs, net 14,700 13,135 1,565 Income taxes 19,700 9,867 9,833 Depreciation and amortization 11,274 11,490 (216) EBITDA $









30,675 $









16,451 $









14,224

















Nine months ended

September 30,

2024 September 30,

2023 Variance EBITDA $









30,675 $









16,451 $









14,224 Change in fair value of biological assets (6,445) 2,675 (9,120) Change in fair market value of derivative (8,292) 262 (8,554) Loss on termination of contract - 6 (6) Loss on debt settlement - (116) 116 Professional fees(1) 4,170 - 4,170 One-time employee costs(2) 776 - 776 Share-based compensation 419 643 (224) Loss on disposal of assets 212 70 142 Other non-recurring expense(3) 486 327 159 Adjusted EBITDA $









22,001 $









20,318 $











1,683

(1)

Legal and professional fees associated with potential transactions and professional fees associated with prior periods. (2)

Severance and relocation costs. (3)

One-time costs incurred during the period related.

SOURCE Cansortium Inc.

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https://menafn.com/1108940367/Cansortium-Reports-Third-Quarter-2024-Results
2024-11-29
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(MENAFN - PR Newswire) 
  
  
 
 
 
 
 
   
  Q3 Revenue improves 3.5% Year-over-Year to $26.1 million  
  Delivers $7.5 million in Adjusted EBITDA, representing 29% margin  
  Generates $9.6 ...
Cansortium Reports Third Quarter 2024 Results