Cansortium Reports Fourth Quarter and Full Year 2023 Results

– Q4 Revenue up 9% YoY to a Record $25.5 Million

– 9th Consecutive Quarter of Positive Cash Flow from Operations

TAMPA, Fla., April 29, 2024 (GLOBE NEWSWIRE) -- Cansortium Inc. (CSE: TIUM.U) (OTCQB: 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 fourth quarter and full year ended December 31, 2023. Unless otherwise indicated, all financial results are presented in U.S. dollars.

“We delivered record revenue and positive cash flow generation during the fourth quarter as we continued to execute on our growth objectives,” said CEO Robert Beasley. “We are making the critical investments needed to lay the foundation for growth and support our future plans and remain excited about the opportunities ahead.”

“In Florida, we continue to ramp our new dispensaries while driving cultivation improvements, leading to production of more high quality, high THC products. These operating improvements drove higher retail prices and higher average basket size during the quarter.”

“Looking ahead, we will continue to drive improvements across our footprint in Florida and Pennsylvania, while capitalizing on our first mover advantage in Texas as we plan to open our brick-and-mortar delivery center in Houston by early 2025.”

Q4 2023 Financial Highlights (vs. Q4 2022)

  • Revenue increased 9% to $25.5 million compared to $23.4 million.
  • Florida revenue increased 11% to $21.6 million compared to $19.4 million.
  • Adjusted gross profit¹ was $12.6 million or 49.4% of revenue, compared to $0.7 million or 3.1% of revenue.
  • Adjusted EBITDA was $6.9 million compared to $7.9 million, with the decrease primarily driven by higher SG&A spend due to additional stores.
  • Cash flow from operations for the three months ended December 31, 2023 was $1.4 million compared to $3.6 million in the prior year.
  • At December 31, 2023 the Company had approximately $10.5 million of cash and cash equivalents and $61.2 million of total debt, with approximately 300 million shares outstanding.

Full Year 2023 Financial Highlights (vs. Full Year 2022)

  • Revenue increased 11% to $97.3 million compared to $87.7 million.
  • Florida revenue increased 11% to $81.2 million compared to $73.0 million.
  • Adjusted gross profit¹ was $49.5 million or 50.9% of revenue, compared to $44.0 million or 50.1% of revenue.
  • Adjusted EBITDA was $27.2 million compared to $25.1 million, with the increase primarily driven by higher revenue on higher customer transactions, slightly offset by higher SG&A due to new dispensary locations.
  • Cash flow from operations for the full year ended December 31, 2023 was $18.5 million compared to $19.1 million in the prior year.

Restatement of 2023 Earnings

The Audit Committee of the Board of Directors of the Company, in consultation with the Company's management, concluded that the Company's previously issued consolidated financial statements for the quarterly periods ended March 31, 2023, June 30, 2023 and September 30, 2023 contained an error related to the accounting for the following items: 

  • Biological assets: Process errors related to beginning of period balances resulted in a $6.7 million mis-classification of expense between COGS and Realized FV of Inventory. There is no impact to Net Income from this mis-classification, but it does impact Adjusted EBITDA. The affected periods are the first three quarters of 2023.
  • Depreciation: A misclassification led to $2.4 million of Depreciation being booked to SG&A instead of COGS. There is no impact to Net Income or Adjusted EBITDA. The affected periods are the second and third quarters of 2023.
  • ERTC Claim: Due to uncertainties surrounding the ERTC program, the Company has removed income from the $3.4 million sale of its ERTC to a third party. This adjustment impacts Net Income for the third quarter of 2023 but does not impact Adjusted EBITDA.

Recent Operational Highlights

  • In Florida, Cansortium opened four dispensaries during 2023.
  • The Company has opened 2 new locations in Florida thus far in 2024 and currently operates 35 locations in the state.

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, April 29, 2024
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: (800) 319-4610
International dial-in number: (604) 638-5340
Conference ID: 10023399
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.

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 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”. 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

Cansortium Inc.
Consolidated Statements of Financial Position
As of December 31, 2023 and 2022
(Amounts expressed in thousands of United States Dollars unless otherwise stated)
  December 31,
  2023 2022
Current assets    
Cash $10,521  $8,359 
Trade receivable  215   28 
Inventory, net  9,244   8,973 
Biological assets  331   996 
Prepaid expenses and other current assets  1,882   883 
Total current assets  22,193   19,239 
Property and equipment, net  27,642   31,743 
Intangible assets, net  93,593   94,291 
Right-of-use assets, net  31,943   30,464 
Goodwill  1,525   1,526 
Other assets  907   768 
Total assets $177,803  $178,031 
Current liabilities    
Trade payable $5,525  $6,931 
Accrued liabilities  9,779   5,534 
Income taxes payable  22,009   13,952 
Derivative liabilities  9,109   8,676 
Current portion of notes payable, net  213   741 
Current portion of lease liabilities  2,872   2,123 
Total current liabilities  49,507   37,957 
Notes payable, net  61,189   56,969 
Lease liabilities  37,242   33,922 
Deferred tax liability  17,398   20,290 
Other long-term liabilities  3,882   1,333 
Total liabilities  169,218   150,471 
Shareholders' equity    
Share capital  183,690   180,954 
Share-based compensation reserve  6,739   6,395 
Equity conversion feature  6,677   6,677 
Warrants  29,634   28,939 
Accumulated deficit  (217,821)  (195,071)
Foreign currency translation reserve  (334)  (334)
Total shareholders' equity  8,585   27,560 
Total liabilities and shareholders' equity $177,803  $178,031 
Cansortium Inc.
Statement of Operations
For the twelve months ending December 31, 2023 and 2022
(Amounts expressed in thousands of United States Dollars unless otherwise stated)
  For the Years Ended December 31,
   2023   2022 
Revenue, net of discounts $97,290  $87,692 
Cost of goods sold  47,814   43,731 
Gross profit before fair value adjustments  49,476   43,961 
Fair value adjustments on inventory sold  12,659   2,622 
Unrealized loss on changes in fair value of biological assets  (14,602)  (9,620)
Gross profit  47,533   36,963 
General and administrative  10,022   8,288 
Share-based compensation  638   545 
Sales and marketing  20,193   17,510 
Depreciation and amortization  7,414   6,765 
Total expenses  38,267   33,108 
Income from operations  9,266   3,855 
Other expense (income)    
Finance costs, net  17,941   16,087 
Loss on change in fair value of derivative liability  433   4,716 
Loss on debt settlement  -   1,136 
Loss (gain) on disposal of assets  (26)  672 
Loss on lease modifications  67   - 
Loss from termination of a contract  7   8,011 
Other expense  -   3 
Total other expense  18,422   30,625 
Loss before income taxes  (9,156)  (26,770)
Income tax expense  13,594   10,376 
Net loss from continuing operations  (22,750)  (37,146)
Net loss from discontinued operations  -   277 
Net loss $(22,750) $(37,423)
Other comprehensive gain that may be reclassified to profit or loss in subsequent years    
Exchange differences on translation of foreign operations and reporting currency  -   88 
Comprehensive loss $(22,750) $(37,335)
Net loss per share    
Basic and diluted - continuing operations $(0.08) $(0.15)
Weighted average number of shares    
Basic number of shares  292,622,129   252,698,567 
Diluted number of shares  349,037,476   308,498,834 

Cansortium Inc.
Statement of Operations
For the three months ending December 31, 2023 and 2022
(Amounts expressed in thousands of United States Dollars unless otherwise stated)
  Three months ended
  December 31, 2023
 December 31, 2022
Revenue, net of discounts $25,544  $23,464  $2,080 
Cost of goods sold  12,932   22,738   (9,806)
Gross profit before fair value adjustments(1)  12,612   726   11,886 
Gross margin before fair value adjustments(1)  49.4%  3.1%  46.3%
Realized fair value of increments on inventory sold  3,615   27,645   (24,030)
Unrealized change in fair value of biological assets  (2,883)  (22,844)  19,961 
Gross profit  13,344   5,527   7,817 
Gross profit margin  52.2%  23.6%  28.7%
General and administrative  2,436   941   1,495 
Share-based compensation  (6)  391   (397)
Sales and marketing  5,265   4,677   588 
Depreciation and amortization  1,634   1,751   (117)
Total expenses  9,329   7,760   1,569 
Income (loss) from operations  4,015   (2,233)  6,248 
Other expense (income):    
Finance costs, net  4,806   4,165   641 
Change in fair market value of derivative  171   (306)  477 
Loss (gain) on termination of a contract  1   (584)  585 
Loss on debt settlement  116   -   116 
(Gain) loss on disposal of assets  (96)  695   (791)
Other expense  -   1   (1)
Total other expense  4,997   3,971   1,027 
Loss before taxes  (983)  (6,204)  5,221 
Income taxes  3,727   3,209   518 
Loss from continuing operations  (4,710)  (9,413)  4,703 
Loss from discontinued operations  -   277   (19)
Net loss $(4,710) $(9,689) $4,979 

Cansortium Inc.
Consolidated Statements of Cash Flow
For the years ended December 31, 2023 and 2022
(Amounts expressed in thousands of United States Dollars unless otherwise stated)
  For the twelve months ended December 31,
  2023 2022
Operating activities      
Net loss from continuing operations $(22,750) $(37,146)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Unrealized loss (gain) on changes in fair value of biological assets 14,602  9,620 
Realized gain on changes in fair value of biological assets (12,659) (2,622)
Share-based compensation 619  545 
Depreciation and amortization 15,078  13,428 
Accretion and interest of convertible debentures 536  362 
Accretion and interest of term loan 12,873  12,232 
Interest income on notes receivable -  (71)
Interest on insurance financing 48  - 
Loss on disposal of assets 255  672 
Loss on debt settlement -  1,136 
Loss on termination of contract -  8,011 
Change in fair market value of derivative 433  4,716 
Interest on lease liabilities 4,473  3,612 
Deferred tax expense (2,892) (1,273)
Changes in operating assets and liabilities:      
Trade receivable (187) (2)
Inventory 15,596  11,927 
Biological assets (17,145) (16,355)
Prepaid expenses and other current assets (999) 404 
Right of Use Assets/Liabilities (3,698) 197 
Other assets 661  (137)
Trade payable (1,404) (1,208)
Accrued liabilities 4,409  (811)
Other long-term liabilities 2,549  - 
Income taxes payable 8,057  11,832 
Net cash provided by operating activities 18,455  19,069 
Investing activities      
Purchases of property and equipment (6,019) (6,799)
Purchase of intangible assets (319) - 
Payment of notes receivable -  119 
Advances for notes receivable -  (94)
Net cash used in investing activities (6,338) (6,774)
Financing activities      
Net proceeds from issuance of shares and warrants 2,992  - 
Proceeds from issuance of convertible debenture and warrants -  4,660 
Net proceeds from insurance financing -  - 
Payment of lease obligations (2,381) (5,771)
Net proceeds from equipment loan -  748 
Exercise of options -  135 
Issuance of shares for note payable extension -  162 
Principal repayments of notes payable (10,566) (12,982)
Net cash used in financing activities (9,955) (13,048)
Effect of foreign exchange on cash and cash equivalents -  88 
Net increase (decrease) in cash 2,162  (665)
Cash, beginning of year 8,359  9,024 
Cash, end of year $10,521  $8,359 


Cansortium Inc.
Adjusted EBITDA Calculation
(Amounts expressed in thousands of United States Dollars unless otherwise stated)
  Year ended
  December December
   31, 2023   31, 2022  Variance
Net loss $(22,750) $(37,423) $14,673 
Interest expense  17,941   16,087   1,854 
Income taxes  13,594   10,376   3,218 
Depreciation and amortization  15,078   13,666   1,412 
EBITDA $23,863  $2,706  $21,157 
  Year ended
  December December 
   31, 2023   31, 2022  Variance
EBITDA $23,863  $2,706  $21,157 
Change in fair value of biological assets  1,943   6,998   (5,055)
Change in fair market value of derivative  433   4,716   (4,283)
Gain on debt settlement(1)  -   1,136   (1,136)
Loss on termination of contract(1)  7   8,011   (8,004)
Share-based compensation  638   545   93 
Discontinued operations(1)  -   -   - 
Loss (gain) on disposal of assets(1)  (26)  673   (699)
Income from ERTC tax credit(1)  -   -   - 
Loss on sale of ERTC tax credit(1)  -   -   - 
Other non-recurring expense (income)(2)  327   278   48 
Adjusted EBITDA $27,183  $25,063  $2,121 

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.