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Cansortium Inc. Reports Financial Results for Q3 2024

Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF), a prominent multi-state cannabis company operating under the FLUENT™ brand, has unveiled its financial and operational results for the third quarter ending September 30, 2024. This marks an essential period for the company as it continues to demonstrate robust performance in a competitive market.

Financial Highlights

For the third quarter of 2024, Cansortium reported a revenue increase of 3.5%, totaling $26.1 million compared to $25.3 million in Q3 2023. The company’s CEO, Robert Beasley, expressed confidence in their business strategy, stating, "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." Adjusted EBITDA for the quarter was recorded at $7.5 million, reflecting a 29% margin, even as the company faced higher general and administrative expenses.

In Florida, specifically, revenue saw a rise of 3.6%, reaching $22.0 million. The company's gross profit before fair value adjustments was approximately $14.3 million, constituting 54.6% of the revenue. Positive cash flow from operations also surged to $9.6 million from the previous year’s $7.1 million.

Operational Advancements

Cansortium continues to scale its operations, particularly in Florida, where it currently operates 35 stores and plans to open four additional stores by 2025. The company successfully completed its first harvest at the new Ruskin, FL facility, enhancing its cultivation capabilities by adding approximately 14,000 square feet of canopy. Moreover, construction is underway at the Rosa, FL facility, expected to contribute another 7,000 square feet of canopy by Q2 2025.

This continuous expansion aims to meet the rising demand for medical cannabis in Florida, which underscores Cansortium’s commitment to serving patients in the state without being overly reliant on the outcome of legislative measures like Amendment 3.

Future Outlook

Looking ahead, Cansortium appears to be in a strong position as it completes its primary loan refinancing and gears up for a significant business combination with RIV Capital slated to close by the end of the year. The integration activities have already begun, with the anticipation of amplifying market share in New York. Beasley remains optimistic, saying, "We are looking forward to leveraging the combined talent of both teams to scale our market share." Additionally, Cansortium is exploring further opportunities for revenue growth in Pennsylvania and Texas.

With a total debt of approximately $74.1 million and about $8.9 million in cash reserves as of September 30, the company is well-prepared for future challenges and growth opportunities. The strategic initiatives taken throughout the year demonstrate Cansortium's commitment to enhancing its operational efficiency and market presence.

In summary, Cansortium Inc.’s third quarter results reflect a solid financial footing, with ongoing expansions and confirmation of continued operational excellence. The company's strategic focus on both existing markets and potential new regions is likely to bolster its growth trajectory as it heads into 2025, reaffirming its role as a significant player in the cannabis industry.