TAMPA, Fla. – Cansortium Inc., a vertically-integrated, multi-state cannabis company operating under the FLUENT brand, reported its financial 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.”
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.”
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
The Company has continued its integration activities with RIV Capital Inc. and, with all required regulatory approval obtained, expects to complete the business combination in early December 2024.
About Cansortium Inc.
Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania and Texas. The Company operates under the Fluent 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”.
