Cansortium Inc. Provides Business Update, Including Commentary on Positive 2020 Business Momentum
"During the first four months of 2020 we have continued to make significant progress on our strategic priorities, despite the unprecedented challenges posed by the global COVID-19 pandemic. We recently completed the previously announced sale of non-core assets in
Update on Current Business Operations and Liquidity
All of the Company's 20 Florida dispensaries and cultivation facilities have remained open following
During the first four months of 2020, the Company has taken several steps to expand its
- opening two (2) additional medical marijuana dispensaries in
Florida. The Company currently operates 20 medical marijuana dispensaries in Florida– double the number it operated last year at this time – and has several more at various stages of construction and approval that it expects to add to its network over the remainder of the year;
- consummating the sale of its non-core assets in
Puerto Ricofor approximately U.S. $670,000in cash and royalties on future sales of Fluent-branded products;
- restructuring approximately U.S.
$25 millionof near-term debt obligations;
- completing a private equity placement for gross proceeds of approximately U.S.
$4.6 millionto fund strategic growth opportunities;
- transferring the Company's 50% ownership of its Colombian subsidiary to its in-market partner as the first step toward eventually exiting the Colombian market;
Zola Global Investors Ltd.to provide consulting services to the Company, pursuant to which Zola will receive one million common shares and stock options with a three-year term to purchase up to three million common shares at an exercise price of U.S. $0.255per share;
- appointing board member
Neal Hochbergas Executive Chairman following the February resignation of the Company's co-founder and CEO; and
- appointing career pharmacist
Roger Daherof Ontario, Canadato the Company's board of directors.
"While the unprecedented market conditions during the COVID-19 pandemic have invariably challenged the Company and its customers, I am grateful for how the Fluent team has responded to care for our customers and for each other. Despite these challenges, our operating performance has continued to improve during the first four months of 2020, approaching an operating scale and efficiency necessary to achieve and sustain positive operating cash flow. As one of the first five licensed operators in the state, we are proud to be serving
Certain information in this news release, may constitute forward-looking information. 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 management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of 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 www.sedar.com. 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.
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