CANSORTIUM ORD OTCMKTS: CNTMF 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.
CANSORTIUM ORD OTCMKTS: CNTMF On May 30, 2019 announced financial results of the first quarter ended March 31, 2019. The Company’s unaudited consolidated quarterly financial statements and accompanying notes are available under the Company’s website.
Cansortium’s Chief Executive Officer Jose Hidalgo commented, “We are committed to earning the trust of physicians, customers and regulators in every market where we choose to compete. During the first quarter of 2019, we completed a $56 million initial public offering along with a private placement of $10 million of convertible debt. This funding enabled us to strengthen our capital structure and balance sheet, which positioned us to issue $27 million in convertible debt to further support scaling of our cultivation and dispensary platforms.
“We recently launched a new global brand platform – Fluent™ – a name inspired by the fact that we are committed to helping our customers become more fluent about cannabis and its potential health and wellness properties,” said Mr. Hidalgo.
Mr. Hidalgo continued, “Since the end of the first quarter, we have tripled our Florida cultivation capacity with the opening of a 60,000 square-foot facility in Tampa, and we are also working to triple our Florida dispensary network from 10 locations today to having 30 locations secured by the end of this year. In early May, we were granted a cultivation, processing and medical sales license by Health Canada, enabling us to activate our strategies to establish the Fluent brand in that important market. As one of only three existing medical cannabis licensees in the state of Texas, the nation’s second-most-populous state, our company is well-positioned to capitalize on what is expected to become a larger Texas market. And in Michigan, our in-market partners, after receiving required approvals from various planning commissions, have begun preparing for full cultivation activities and secured pre-qualifications to open and operate up to eight dispensaries in this high-potential market.”
Mr. Hidalgo concluded, “We expect 2019 to be a year of expansive growth and we are reaffirming our previous full year outlook. Our team is focused on positioning the Company and the Fluent brand to capitalize on rapidly expanding opportunities in the U.S., while laying important groundwork for future expansion in international markets.”
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.