Cansortium Chops 2019 Revenue Outlook in Half After Florida Cultivation Expansion Delay

Cansortium Inc. Reports Second Quarter 2019 Financial Results; Revises Full Year 2019 Outlook; Expects to Achieve Profitability in Early 2020

MIAMI, Aug. 29, 2019 /CNW/ – Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) (“Cansortium” or the “Company”), a vertically-integrated, global provider of premium-quality medical cannabis, today announced financial results of the second quarter ended June 30, 2019. The Company’s unaudited condensed interim consolidated financial statements and accompanying notes, along with the Management Discussion and Analysis (MD&A) are available under the Company’s profile on SEDAR at and are also accessible through a link on the Investor Relations section of the Company’s website at

Selected Second Quarter 2019 Financial Highlights Versus Pro-Forma Second Quarter 2018 Results¹

  • Consolidated revenue increased 19 percent to $6.1 million, compared to pro-forma revenues of $5.1 million for the second quarter of 2018
  • Consolidated net loss totaled $(5.3) million, or $(0.03) per diluted share, compared to pro-forma net income of $4.9 million, or $0.04 per diluted share for the second quarter of 2018
  • Consolidated EBITDA² totaled $1.8 million, compared to pro-forma EBITDA² of $5.8 million for the second quarter of 2018
  • Consolidated Adjusted EBITDA² totaled $(2.6) million, compared to Adjusted pro-forma EBITDA² of $0.1 million for the second quarter of 2018

Selected First Half 2019 Financial Highlights Versus First Half 2018 Pro-Forma Results¹

  • Consolidated first half 2019 revenue increased 37 percent to $11.6 million, compared with pro-forma revenue of $8.5 million for the first half of 2018
  • Consolidated first half 2019 net loss totaled $(21.8) million, or $(0.11) per diluted share, compared to pro-forma net loss of $(1.6) million, or $(0.01) per diluted share for the first half of 2018
  • Consolidated first half EBITDA² totaled $(7.4) million, compared to pro-forma EBITDA² of $0.1 million for the first half of 2018
  • Consolidated first half Adjusted EBITDA² totaled $(6.6) million, compared to Adjusted pro-forma EBITDA² of $(1.4) million for the first half of 2018

Selected Events Subsequent to June 30, 2019

  • Opened 3 new medical cannabis dispensaries in Florida, for a total of 14 in Florida
  • Received licensing for and began propagating Phase 2 of the Company’s Tampa, Florida cultivation facility which, when combined with its existing Phase 1 capacity, is expected to more than triple the Company’s total current Florida cultivation capacity
  • Opened the Company’s second medical cannabis dispensary in Puerto Rico
  • Received approval to list on the OTCQB Venture Market

Cansortium’s Chief Executive Officer Jose Hidalgo commented, “In every market where we choose to compete, our goal is to establish Fluent as the leading premium medical cannabis brand and a standard-setter for consistent formulation and unmatched customer experience at each of our Fluent-branded medical marijuana dispensaries.

While we continued to execute our strategy to expand cultivation, processing, and dispensaries during the second quarter, a combination of unexpected delays in construction needed in order to secure final regulatory approvals at our Tampa cultivation Phase 2 expansion, as well as delays in opening certain previously planned Florida dispensaries, led to second quarter revenues that were lower than originally anticipated. As a result, we are experiencing an approximate six-month delay on our plans presented earlier in the year.

Given this delay, our management team is laser-focused on directing our capital and human resources toward the Florida, Michigan and Texas markets, which we believe offer the greatest revenue potential over the near-to-intermediate term, and a more achievable path to near-term profitability for the company.

Chief Executive Officer Jose Hidalgo

While 2019 is still expected to be a year of significant growth, we have revised our full year outlook to reflect the delays we’ve experienced. Notably, with the increased cultivation capacity in Florida combined with the start of cultivation in Michigan and the anticipated increased demand in Texas, we have confidence in achieving our revised 2019 outlook, exiting the year with strong momentum and achieving profitability in the first quarter of 2020.

Mr. Hidalgo concluded, “The Founders and senior executive team firmly believe in this plan and are committed to seeing it through. To that end, we have agreed to a voluntary lock-up of our shares, which represents 25% of the outstanding shares on a fully diluted basis.”

Revised Full Year 2019 Outlook

All projections related to anticipated future results are forward-looking in nature and are subject to risks and uncertainties that may cause actual results to differ, perhaps materially. Projections are predicated on the Company’s ability to successfully execute its operational expansion initiatives during 2019, which include expanding its Florida cultivation and dispensary platform and securing licenses necessary to enable expansion of its cultivation and dispensary platforms in other key markets. In addition, projections are based on the Company’s ability to secure and effectively deploy its capital resources toward those initiatives. Effective March 22, 2019, the Company became subject to U.S. IRS Tax Code Section 280E, under which gross profit from the Company’s U.S. retail operations is taxed at U.S. federal corporate tax rates, without the opportunity to deduct any selling, general & administrative expenses attributable to the Company’s U.S. operations. The Company’s 2019 outlook also assumes that legal, regulatory and tax policies in key markets remain largely unaltered for the balance of the year.

As indicated in the accompanying financial statements, Consolidated Net Loss year to date is approximately $22 million, which includes over $10 million of costs associated with the Company’s Initial Public Offering completed in late March and financing activities completed during 2019. These expenses, which included legal expenses and multi-year audits, are not anticipated to re-occur in 2020. The Company’s outlook for SG&A expenses in the second half of the year remains unchanged.

As discussed above, the expansion of the Tampa cultivation facility as well as the opening of certain dispensaries was delayed. As a result, the Company is revising its full year 2019 revenue outlook from its previous outlook of $80 – $82 million, to a revised outlook of approximately $40 million.

The company has stabilized the month on month cash burn and is focused on increasing revenue to achieve profitable operations. As a result of the impact of the delayed cultivation and dispensary openings, combined with the year to date consolidated net loss of $22 million, the Company currently expects a full year 2019 consolidated net loss of approximately $30 million. The Company expects that EBITDA and Adjusted EBITDA will be similarly impacted.

In addition, the Company also noted that the first harvest from Phase 2 of its Tampa facility is on track to be cultivated in the fourth quarter of 2019, more than tripling its Florida cultivation volume and supply of flower and oil-based products to support its expanding Florida dispensary network. Further, the Company anticipates having at least 21 operational dispensaries in Florida by December 31, 2019, with plans to expand to 40 locations by the end of 2020.

As a result of the anticipated incremental cultivation capacity, dispensary openings, and operating momentum resulting in increased revenues expected by year-end 2019, the Company expects to be profitable in the first quarter of 2020.

Conference Call

The Company will hold a conference call on Thursday, August 29, 2019 at 5:00pm (ET) to review its second quarter and first half 2019 financial results. The conference call can be accessed by calling 877-407-9039 (in the U.S.) or 201-689-8470 (international), conference ID 13692655. Participants should call in at least five minutes prior to the start of the call. The call also will be accessible via live webcast at A replay of the call will be available starting August 29, 2019 at 8:00pm (ET) through September 5, 2020 at 11:59pm (ET), at 844-512-2921 (in the U.S.) or 412-317-6671 (international); conference ID 13692655. A webcast replay will also be available through August 28, 2020 at


Cansortium Inc. is a global medical cannabis company operating in highly populous medical cannabis markets with a mission to deliver the highest standards of cannabis care from nursery to lab to shelf. Headquartered in Miami, FL and operating under the recently-launched Fluent™ brand (formerly Knox Medical), the Company through its subsidiaries operates cultivation, processing and dispensary facilities across Florida, Texas, Puerto Rico and a dispensary license in Pennsylvania. The Company also has licensed cultivation facilities in Colombia and Canada, with licensing pending in Michigan.

For a complete list of Fluent dispensary locations, current promotions and rewards programs and hours of operation, or to explore the entire Fluent product line and place an online order for home delivery in Florida, Texas or Puerto Rico visit

Cansortium Inc.’s common shares and warrants trade on the CSE under the symbol “TIUM.U” and “TIUM.WT.U” respectively, and on the OTCQB Venture Market under the symbol (OTCQB: CNTMF). Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on

¹During the first six months of 2018, substantially all of the Company’s revenue-generating activity occurred in Florida and derived from a 38% minority investment in Knox Servicing, LLC. On August 15, 2018, the Company acquired the remaining 62% ownership of Knox Servicing, LLC, becoming its sole member. The Company’s pro-forma first-half 2018 financial results are presented on a fully consolidated basis as if the Company had acquired 100% of Knox Servicing, LLC as of January 1, 2018. These results reflect activities related to Knox Servicing’s Florida operations and the company’s operations inside and outside of Florida unrelated to Knox Servicing, LLC during the six months ended June 30, 2018

²EBITDA and Adjusted EBITDA are not recognized performance measures under IFRS. “EBITDA” is earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” is equal to net income (loss), plus (minus) interest expense (income) and finance transactions costs, plus depreciation and amortization, plus (minus) unrealized loss (gain) on embedded derivatives, plus (minus) certain one-time non-operating expenses, as determined by management. The management of the Company believes that these non-IFRS financial measures in addition to conventional measures prepared in accordance with IFRS provides information that is helpful to understand the results of operations and financial condition of the Company. The objective is to present readers with a view of the Company from management’s perspective by interpreting the material trends and activities that affect the operating results, liquidity and financial position of the Company. These measures are not necessarily comparable to similarly titled measures used by other companies. A reconciliation of EBITDA and Adjusted EBITDA to Consolidated Net Income reported in accordance with IFRS is included in the financial tables below

Original press release

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