- C21 Investments’ (CXXI) President and CEO has released a positive year-end letter to shareholders
- The company received over 635,000 customer transactions over the fiscal year ending January 31
- Customer transactions have been significantly increasing with each quarter
- The positive news comes after a tumultuous year for North American cannabis stocks, with the US Presidential Election adding to the complexity
- Shares in C21 Investments are currently up 1.92 per cent to C$0.53, with a market cap of C$1.05 million
Vancouver-based cannabis company, C21 Investments (CXXI), has released a year-end letter from its President and CEO, citing both revenue and customer growth.
Sonny Newman was quick to point out that C21 Investments received over 635,000 customer transactions in the fiscal year ending January 31 – a statistic that resulted from significant increases with each quarter.
With operations in Nevada and Oregon, the company has been busy integrating its complete range of products into each of the two markets.
One of its top performing brands, Hood Oil, sold more than 100,000 units in Nevada since June last year at a 54 per cent gross margin, generating C$3.9 million.
“We recently reported revenue of C$14 million in the third quarter, with C$2.9 million of positive Adjusted EBITDA, a 175 per cent increase quarter-over-quarter. Our Q3 Adjusted EBITDA margin of 21 per cent placed us among the top 5 reporting US operators for the quarter,” said Mr. Newman.
“C21 is one of only a handful of public US Operators with positive operating cash flow. This has allowed us to survive in these difficult market conditions without having to issue any equity financing under my watch.”
The positive news comes after a tumultuous year for North American cannabis stocks; many did very well over 2019, but others struggled under the deflation of lofty valuations, a changing regulatory landscape, and failing deals.
While things seem to be levelling out as we enter the new decade, a sense of unpredictability remains – due in part to the US Presidential Election, of which cannabis rules and legislation have been a major player.
“It has been a particularly difficult nine month stretch for the entire sector, and indeed for our stock. This is frustrating given how well we have executed on our strategy and the gains we have achieved,” continued Mr. Newman.
“We believe that with the anticipated legislative changes in the US, increased interest in viable U.S. cannabis companies will return, and with this, companies with discipline and focus such as ours, will be rewarded.”
Mr. Newman’s letter also mentioned the company’s continued work with its advisers, Eight Capital and CB1 Capital, to identify optimum avenues for growth, as well as increasing financial flexibility in its management of debt.
Shares in C21 Investments are currently up 1.92 per cent to C$0.53, with a market cap of C$1.05 million.