Cansortium Unaudited Revenue Increased 22% To $63.7M In 2021 YoY

Cansortium Unaudited Revenue Increased 22% To $63.7M In 2021 YoY

Cansortium Inc. CNTMF TIUM, a vertically-integrated cannabis company operating under the Fluent brand, released preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2021. The company is also providing select preliminary unaudited first quarter results for the quarter ended March 31, 2022.

Q4 2021 Preliminary Financial Highlights (vs. Q4 2020)

  • Revenue increased 13% to $16.5 million compared to $14.7 million.

  • Expected operating loss decreased to $(1.6) million compared to $(9.7) million.

  • Expected adjusted EBITDA increased 55% to $5.1 million or 31.0% of revenue, compared to $3.3 million or 22.5% of revenue.

FY 2021 Preliminary Financial Highlights (vs. FY 2020)

  • Revenue increased 22% to $63.7 million compared to $52.4 million.

  • Expected operating loss decreased to $(2.4) million compared to $(8.4) million.

  • Expected adjusted EBITDA increased 90% to $19.6 million or 30.8% of revenue, compared to $10.3 million or 19.6% of revenue.

Q1 2022 Preliminary Results & Recent Highlights

  • Revenue increased 33% year-over-year to $20.1 million compared to $15.1 million.

  • In Florida, average biomass harvested per week has increased approximately 100% in Q1 2022 compared to Q4 2021 due to new cultivation ramping.

  • Inventory shipped in Florida increased 75% in March 2022 compared to December 2021, reflecting the highest levels of inventory in company history.

  • Sales in milligrams ("mgs") of THC increased by 173%, from 5.6 million mgs in the first week of Q1 2022 to 15.4 million mgs in the 16th week of 2022.

  • New patient acquisition in Florida increased approximately 16% in Q1 2022 compared to Q4 2021 due to increased community outreach engagement, competitive pricing and fully stocked inventories.

  • In late April, the company opened its third dispensary in Pennsylvania in Annville.

The company expects revenue in 2022 to range between $90-$95 million, reflecting an approximate 45% increase from 2021 at the midpoint. Cansortium also expects adjusted EBITDA in 2022 to range between $25-$28 million, reflecting an approximate 35% increase from 2021.

Delayed Filing of Audited Annual Financial Statements and Related Materials

As a result of additional time required by the company's auditors to complete their remaining audit procedures, Cansortium will not be filing its periodic disclosure documents by the filing deadline of May 2, 2022. The company has sought from, and is in communication with, the Ontario Securities Commission concerning the availability of a management cease trade order in respect of the missed deadline for the annual filings.

If an MCTO is granted, it is expected that the general investing public will continue to be able to trade in the company's listed common shares, however, the company's CEO and CFO will not be able to trade in the company's common shares. The company confirms it will comply with the provisions of the alternative information guidelines under National Policy 12-203 – Management Cease Trade Orders for so long as an MCTO remains in effect.

The company has been actively engaged in discussions with its auditors over the past two weeks and was only recently informed that they would not complete the filings ahead of the deadline.

The causes of the delay are not material to the company nor its operations. Notwithstanding the delay, the company continues to operate normally without disruption and is working diligently and expeditiously with its auditors to complete the annual filings as soon as possible.

The company is not currently subject to any insolvency proceedings. The company also confirms that there is no other material information concerning the affairs of the company that has not been generally disclosed.

The company will advise, if the MCTO is granted. If the MCTO is not granted, it is expected that the OSC will issue a failure-to-file cease trade order. If a failure-to-file cease trade order is made, the company will advise, setting out the particulars thereof and will comply with its related obligations.

Conference Call
The company will host a conference call and live audio webcast on May 3, at 5:00 p.m. Eastern time to discuss its preliminary financial results, operational highlights and the delayed filing, followed by a question-and-answer period.

Photo: Courtesy of Esteban Lopez on Unsplash

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