As Cansortium’s revenue increases, it is okay if adult use is not permitted in Florida

After the market closed on Friday, Cansortium Inc., also known as Fluent (CSE: TIUM.U) (OTCQB: CNTMF), reported its quarter-end financial results September 30, 2024.

Sales rose by 3.5% $26.1 million compared to last year $25.3 million. However, second-quarter sales of $27.2 million fell quarter-over-quarter. The majority of the company’s business is in Florida, where there are 35 pharmacies and three Florida dispensaries.

Fluent reported that its net loss for the quarter widened to $11.7 million compared to last year’s net loss of $5.3 million. At the end of the quarter, Fluent had approx $8.9 million Cash and cash equivalents inventory decreased from $10.5 million at the end of 2023. The company has total liabilities of $195 million.

CEO Robert Beasley said, “In Florida, we have increased our acreage to keep pace with strong medical market demand and expect to add four new stores in 2025 while expanding our brand and product portfolio.” Fortunately Our growth strategy did not depend on the outcome of the passage of Amendment 3 Florida and we have not entered into any financial commitments dependent on adult use. FLUENT remains committed to the mission of serving medical cannabis patients Florida.”

Following quarter-end, on November 26, 2024, Fluent announced that it had entered into a new senior secured credit agreement for up to $96.5 million with Chicago Atlantic, as administrative agent for certain lenders. The Credit Agreement refinances the existing senior secured loan due May 29, 2025, eliminating the previously disclosed requirement that the Company make a $10 million prepayment upon consummation of the business combination with RIV Capital Inc. omitted. The agreement includes a financial covenant requiring the company to maintain unrestricted cash balances of at least $4.5 million at the end of each fiscal quarter.

The company told investors that it has continued its integration activities with RIV Capital Inc. and expects to complete the business combination soon upon receipt of all necessary regulatory approvals December 2024.

Mr. Beasley concluded: “Looking forward, our company is exceptionally well positioned for 2025 with the completion of our primary loan refinancing and the completion of our business combination with RIV Capital. We have already begun integration activities and are looking forward to it.” We are leveraging the combined talent of both teams to increase our market share in the state new York. Additionally, we continue to look for opportunities to drive revenue growth in both areas Pennsylvania And Texas.”