C21 Investments Inc., a vertically integrated cannabis company, has reported unaudited financial results for the fiscal year ending January 31, 2024. Despite a marginal year-over-year revenue decrease from last year to $28.3 million and a slip in gross profit, the company saw positive Adjusted EBITDA of $4.6 million. With strong brand loyalty and 500,000 annual transactions, CEO Sonny Newman remains optimistic. Particularly noteworthy in Q4 was a slight uptick in same-store sales, balancing a 12% fall in Nevada’s revenue. The gross margin suffered, largely due to one-time charges, resulting in a net loss of $2.5 million. However, C21 succeeded in reducing total liabilities by $1.5 million and sustained healthy cash flows. Looking forward, the firm concluded a CA$4 million private placement offering to fund the acquisition of Deep Roots Harvest, Inc.’s operational retail dispensary in Southern Reno. This move is expected to bolster its retail presence as part of their strategic shift away from low-margin wholesale operations. Concurrently in the industry, Viridian Capital Advisors predict a surge in M&A due to regulatory shifts following the DEA’s decision to reschedule cannabis.

Cannabis, Mergers and Acquisitions, Financial Services,Nevada, USA, Canada

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