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Cansortium Investors Pull Back After Q4 Print: What Cannabis Stock Investors Need To Know

Vertically integrated cannabis company Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF), which operates under the Fluent brand, announced its fourth-quarter and full-year 2020 financial results Monday.

The Miami-based company generated $14.7 million in consolidated revenue during the three months ending Dec. 31, marking a 54% year-over-year increase.

“Our strong fourth-quarter results reflect the many improvements we have made across the organization, and that momentum has carried into 2021,” CEO Robert Beasley said in a statement. 

Cansortium’s Q4 Highlights

  • Florida revenue spiked 43% year-over-year to $12.8 million.
  • Consolidated loss from operations amounted to $8.4 million versus a $32.8-million loss in the corresponding quarter of 2020.
  • Consolidated adjusted EBITDA grew to $3.3 million versus $100,000 for the same period of 2019.

Cansortium’s 2020 Financial Highlights

  • Consolidated revenue rose 84% year-over-year to $52.4 million.
  • Florida revenue amounted to $46.4 million compared to $25.1 million in 2019.
  • Consolidated loss from operations was $36.6 million versus a $65.6-million loss in the year before.
  • Consolidated adjusted EBITDA grew to $10.3 million versus an adjusted EBITDA loss of $6.9 million in 2019.

In April, Cansortium saw record monthly sales in Florida, reaching roughly $5 million, following the launch of a Sweetwater cultivation facility, said Beasley, who became CEO in September ahead of joining the company’s board of directors in January.

“In Pennsylvania, we also achieved record first-quarter revenues of more than $2 million and expect to have our second dispensary in Mechanicsburg open in July and have identified a location for our third dispensary, which we expect to open in the fourth quarter,” he said.

Cansortium recently raised some $12 million via a sale of approximately 17.14 million of its units at 70 cents per unit to boost its operations in Florida, Michigan and Pennsylvania.

The company expects to generate between $90 million to $100 million in revenue in 2021 and achieve an adjusted EBITDA of approximately $30 million to $35 million.

CNTMF Price Action: Cansortium shares were down 10.28% at 96 cents at the close Tuesday. 

Photo Source: CNW Group/Cansortium Inc. 

© 2021 Benzinga does not provide investment advice. All rights

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