Cansortium Q1 Revenue Increases 49% to $15.1 Million

Cansortium Reports First Quarter 2021 Financial Results

• Q1 Revenue up 49% YoY to $15.1 Million; Adjusted EBITDA up Significantly to $4.4 Million
• Management to Host Conference Call Today at 4:30 P.M. Eastern Time

MIAMI, Fla., May 28, 2021 /PRNewswire/ – Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) (“Cansortium” or the “Company”), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced financial results for the first quarter ended March 31, 2021, as well as recent operational highlights. Unless otherwise indicated, all results are presented in U.S. dollars.

The momentum from last year has carried into 2021 as we generated another quarter of record revenue and adjusted EBITDA¹. We have moved well past our turnaround phase and have returned to consistent growth and profitability. In fact, we followed up Q1 with another record month of sales in April, and we continue to expect a step function in growth in the back half of the year as new dispensaries and cultivation capacity come online.

Chief Executive Officer Robert Beasley

Our expansion initiatives in both Florida and Pennsylvania have been fully funded by our recent debt and equity financings of nearly $90 million. By the end of 2021, we anticipate having a total of 30 dispensaries operational along with over 150,000 ft² of cultivation capacity, positioning us well for an even stronger 2022.

Q1 2021 Financial Highlights (vs. Q1 2020)

• Revenue increased 49% to $15.1 million compared to $10.2 million
• Florida revenue increased 41.4% to $13.1 million compared to $9.3 million
• Adjusted gross profit2 increased 49% to $9.7 million or 64.2% of revenue, compared to $6.5 million or 64.0% of revenue
• Net loss totaled $(5.1) million or $(0.03) per share, compared to a net loss of $(13.9) million or $(0.07) per share
• Adjusted EBITDA increased significantly to $4.4 million compared to $0.7 million

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_{1 Adjusted EBITDA is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates adjusted EBITDA from EBITDA plus (minus) unrealized loss (gain) on embedded derivatives, plus (minus) certain one-time non-operating expenses, as determined by management. A reconciliation from adjusted EBITDA to net loss is included in the accompanying financial schedules.}

_{2 Adjusted gross profit is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. The Company calculates adjusted gross profit from gross profit plus (minus) the changes in fair value of biological assets, as presented in the consolidated statement of operations.}

Recent Operational Highlights

• Generated record April sales Florida highlighted by record volumes on the 4/20 cannabis holiday
• Launched 21 new flower strains in Florida as well as several new products, including three new Moods flavors and Jane West pipes
• In April, the Company completed a $17 million private placement and $71 million secured term loan, which provides the resources and working capital needed to support Cansortium’s growth and expansion
• In May, the Company satisfied and cancelled approximately $43 million of legacy debt and redeemed $5 million of convertible notes
• As of May 28, 2021, the Company had approximately $30 million of cash and cash equivalents, $71 million of debt and a $5 million convertible note outstanding, as well as approximately 267 million fully diluted shares outstanding (based on treasury stock method and share price on May 27, 2021)

2021 Outlook

The Company is reiterating its previously issued annual guidance of revenue between approximately $90 million to $100 million, as well as adjusted EBITDA of approximately $30 million to $35 million.

In Florida, Cansortium continues to expect a total of 27 dispensaries to be operational by the end of 2021 (up from its current 24 locations in FL), with an additional four identified locations by year-end. The Company also continues to expect approximately $70-80 million of 2021 revenue to come from its operations in Florida.

In Pennsylvania, the Company continues to expect opening an additional dispensary in Q3 2021, with a third dispensary opening in Q4 2021.

In Michigan, the Company has approximately 2,600 lbs. of biomass in inventory and 900 lbs. of flower prepared for sale. The Company anticipates that all will be sold in the next 30-60 days and based on current market prices, will generate approximately $3 million of revenue.

The Company’s unaudited 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 www.sedar.com and are also accessible through the Investor Relations section of the Company’s website at www.getfluent.com.

Conference Call

The Company will host a conference call and live audio webcast today at 4:30 p.m. Eastern time to discuss its financial results and operational highlights.

Toll-free dial-in number: 1-800-319-4610
International dial-in number: (604) 638-5340
Conference ID: 10014932
Link: Cansortium Q1 2021 Webcast

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at (949) 200-4603.

The conference call will also be available for replay via the News & Events section of the Company’s investor relations website at https://investors.getfluent.com/.

About Cansortium Inc.

Cansortium is a vertically-integrated cannabis company with licenses and operations in Florida, Pennsylvania, Michigan and Texas. The Company operates under the Fluent™ brand and is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by Cansortium’s unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The Company is headquartered in Miami, Florida.

Cansortium Inc.’s common shares trade on the CSE under the symbol “TIUM.U” and on the OTCQB Venture Market under the symbol “CNTMF.” For more information about the Company, please visit www.getfluent.com.

Original press release

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