Cansortium Reports Second Quarter 2023 Results


- Q2 Revenue up 9% Sequentially and YoY to $24.4 Million -

- Q2 Cash from Operations of $4.8 Million; 7th Consecutive Quarter of Positive Cash Flow -

TAMPA, Fla., Aug. 28, 2023 (GLOBE NEWSWIRE) -- Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) (“Cansortium” or the “Company”), a vertically-integrated, multi-state cannabis company operating under the FLUENT™ brand, today announced financial and operating results for the second quarter ended June 30, 2023. Unless otherwise indicated, all financial results are presented in U.S. dollars.

“We continued to drive revenue growth and cash flow generation during the second quarter through a combination of organic growth as well as new store openings in Florida,” said CEO Robert Beasley. “We have opened four new stores in Florida this year that are still ramping and we continue to expect opening an additional 1-2 new stores before year end, all while continuing to improve our cultivation to deliver more high-THC products.”

“In Pennsylvania, we generated another quarter of organic growth as our inventory optimization and expanded product assortment continues to resonate with patients. And in Texas, we logged our first B2B sale during the quarter and continue to expect opening our brick-and-mortar delivery center in Houston in the coming months. We look forward to executing on our plans as we deliver another year of revenue growth and cash flow generation in 2023.”

Q2 2023 Financial Highlights (vs. Q2 2022)

  • Revenue increased 9% to $24.4 million compared to $22.4 million.
  • Florida revenue increased 11% to $20.1 million compared to $18.2 million.
  • Adjusted gross profit1 increased 5% to $15.8 million or 64.6% of revenue, compared to $15.0 million or 67.0% of revenue.
  • Adjusted EBITDA was $8.6 million compared to $10.2 million, with the decrease primarily driven by increased SG&A related to new store openings that are still ramping.
  • Cash flow from operations for the three months ended June 30, 2023 was $4.8 million compared to $5.8 million in the prior year.
  • At June 30, 2023 the Company had approximately $8.8 million of cash and cash equivalents and $59.3 million of total debt, with approximately 298 million shares outstanding.

Recent Operational Highlights

  • In Florida, Cansortium currently operates 33 stores and anticipates opening an additional 1-2 new stores by the end of 2023.
  • The Company appointed John Mazarakis to the Board of Directors, who brings over 25 years of entrepreneurial, operational and managerial experience to Cansortium.
  • The Company completed its headquarters relocation from Miami to Tampa, Florida, and will create more than 30 new jobs in administration, finance, human resources, marketing, sales, operations and other key areas.
  • In Texas, the Company completed its first B2B sale and expects to open its brick-and-mortar delivery center in Houston by the end of the year.

1 Adjusted gross profit 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 adjusted gross profit from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.

Conference Call

The Company will host a conference call and live audio webcast today at 4:30 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period. Interested parties may submit questions to the Company prior to the call by emailing

Date: Monday, August 28, 2023
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10022237
Link: Cansortium Conference Call

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at (720) 330-2829.

The conference call will also be available for replay via the News & Events section of the Company’s investor relations website at

About Cansortium Inc.
Cansortium Inc. 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 OTCQX Best 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

Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829

As of June 30, 2023 and December 31, 2022      
(USD '000)      
   June 30,
 December 31,
Current assets      
Cash  $8,797  $8,359  
Trade receivable   27   28  
Inventory, net   7,023   8,973  
Biological assets   511   996  
Prepaid expenses and other current assets  872   883  
Total current assets   17,230   19,239  
Property and equipment, net   30,956   31,743  
Intangible assets, net   93,525   94,291  
Right-of-use assets, net   29,148   30,464  
Goodwill   1,525   1,526  
Other assets   808   768  
Total assets  $173,192  $178,031  
Current liabilities      
Trade payable   6,813   6,931  
Accrued liabilities   4,911   5,534  
Income taxes payable   20,674   13,952  
Derivative liabilities   8,512   8,676  
Current portion of notes payable   339   741  
Current portion of lease obligations   2,586   2,123  
Total current liabilities   43,835   37,957  
Notes payable   58,925   56,969  
Lease obligations   32,900   33,922  
Deferred tax liability   18,773   20,290  
Other long-term liabilities   542   1,333  
Total liabilities   154,975   150,471  
Shareholders' equity      
Share capital   183,577   180,954  
Share-based compensation reserve   6,466   6,395  
Equity conversion feature   6,677   6,677  
Warrants   29,634   28,939  
Accumulated deficit   (207,803)  (195,071) 
Foreign currency translation reserve   (334)  (334) 
Total shareholders' equity   18,217   27,560  
Total liabilities and shareholders' equity $173,192  $178,031  

  For the three months ended
June 30,
 For the six months ended
June 30,
   2023   2022   2023   2022 
Revenue, net of discounts $24,430  $22,416  $46,486  $42,128 
Cost of goods sold  8,644   7,405   16,609   15,571 
Gross profit before fair value adjustments  15,786   15,011   29,877   26,557 
Fair value adjustments on inventory sold  441   (8,594)  (1,079)  (15,418)
Unrealized (loss) gain on changes in fair value of biological assets  (3,035)  9,467   (8,092)  10,666 
Gross profit  13,192   15,884   20,706   21,805 
General and administrative  2,571   2,319   4,883   5,160 
Share-based compensation  177   -   415   100 
Sales and marketing  5,576   4,190   9,575   8,277 
Depreciation and amortization  2,963   1,694   4,811   3,358 
Total expenses  11,287   8,203   19,684   16,895 
Income from operations  1,905   7,681   1,022   4,910 
Other expense (income)        
Finance costs, net  4,324   3,843   8,573   7,500 
Loss (gain) on change in fair value of derivative liability  (442)  3,007   (164)  4,709 
Loss on debt settlement  -   1,136   -   1,136 
Loss on disposal of assets  -   -   70   - 
Loss from termination of a contract  82   -   3   - 
Other expense (income)  -   (373)  66   (373)
Total other expense  3,964   7,613   8,549   12,971 
Income (loss) before income taxes  (2,059)  68   (7,527)  (8,061)
Income tax expense  3,291   3,504   5,205   5,516 
Net loss from continuing operations  (5,350)  (3,436)  (12,732)  (13,577)
Net loss from discontinued operations  -   8,574   -   8,576 
Net loss $(5,350) $(12,010) $(12,732) $(22,153)
Other comprehensive gain (loss) that may be reclassified to profit or loss in subsequent years        
Exchange differences on translation of foreign operations and reporting currency -   62   -   87 
Comprehensive loss $(5,350) $(11,948) $(12,732) $(22,066)
Net loss per share        
Basic and diluted - continuing operations $(0.02) $(0.05) $(0.04) $(0.09)
Weighted average number of shares        
Basic number of shares  296,938,910   352,230,174   286,804,241   252,698,567 
Diluted number of shares  352,230,174   307,984,934   339,972,379   308,498,834 

(USD '000)  
 For the six months ended June 30,
  2023  2022 
Operating activities  
Net loss from continuing operations$(12,732)$(22,153)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Unrealized gain (loss) on changes in fair value of biological assets 8,092  (10,666)
Realized gain on changes in fair value of biological assets 1,079  15,418 
Share-based compensation 415  100 
Depreciation and amortization 8,042  6,072 
Accretion and interest of convertible debentures 266  - 
Accretion and interest of term loan 6,262  6,219 
Interest income on notes receivable -  (71)
Interest of equipment loan 13  - 
Loss on disposal of assets 70  - 
Loss on debt settlement -  1,136 
Discontinued operations -  8,576 
Change in fair market value of derivative (164) 4,709 
Interest on lease liabilities 2,037  1,310 
Deferred tax expense (1,517) (304)
Changes in operating assets and liabilities:  
Trade receivable 1  (33)
Inventory 1,770  1,044 
Biological assets (8,886) (9,290)
Prepaid expenses and other current assets 11  117 
Right of Use Assets/Liabilities 67  - 
Other assets (40) 5 
Trade payable (135) 374 
Accrued liabilities (623) 1,877 
Other long-term liabilities (791) - 
Income taxes payable 6,722  5,627 
Net cash provided by operating activities 9,960  10,067 
Investing activities  
Purchases of property and equipment (4,339) (4,214)
Payment of notes receivable -  119 
Advances for notes receivable -  (94)
Net cash used in investing activities (4,339) (4,189)
Financing activities  
Net proceeds from issuance of shares and warrants 2,993  4,656 
Payment of lease obligations (3,188) (2,521)
Exercise of Options -  135 
Principal repayments of notes payable (4,988) (8,401)
Net cash used in financing activities (5,183) (6,131)
Effect of foreign exchange on cash and cash equivalents -  87 
Net increase (decrease) in cash 438  (166)
Cash, beginning of period 8,359  9,024 
Cash, end of period 8,797  8,858 

Cansortium Inc.   
Adjusted EBITDA Calculation   
(USD '000)   
 Three months ended
30, 2023
30, 2022
Net loss$(5,350)$(12,010)$6,660 
Finance costs, net 4,324  3,843  481 
Income taxes 3,291  3,504  (213)
Depreciation and amortization 3,888  3,366  522 
EBITDA$6,153 $(1,297)$7,450 
 Three months ended
30, 2023
30, 2022
EBITDA$6,153 $(1,297)$7,450 
Change in fair value of biological assets 2,594  (873) 3,467 
Change in fair market value of derivative (442) 3,007  (3,449)
Loss on debt settlement -  1,136  (1,136)
Gain on termination of a contract 82  -  82 
Share-based compensation 177  -  177 
Discontinued operations -  8,574  (8,574)
Other non-recurring expense/(income) -  (373) 373 
Adjusted EBITDA$8,563 $10,174 $(1,611)