Debra Borchardt
C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) announced its unaudited interim financial statements for the third quarter ended October 31, 2023. C21‘s revenue fell sequentially by 3.9% to $6.8 million and was below last year’s revenue of $7.2 million. C21 attributed the drop to lower wholesale revenues in the quarter, partially offset by an increase in same-store sales for the second straight quarter. Wholesale revenues decreased to $0.45 million versus last year’s $0.47 million and decreased sequentially from the second quarter’s $0.78 million.
C21 also reported a net loss of $0.4 million, or ($0.00) earnings per share.
“We continued to see stable retail revenue and cash generation again this quarter, a testament to the strength of our operations and management team,” stated CEO and President, Sonny Newman. “We experienced a second consecutive quarter of increased same store sales, reflecting our strong brand and loyal customer base. We are also pleased with the success of our drive-thru initiative that commenced during the quarter, which has added new efficiencies to our operations.”
Cash at the end of the quarter was $1.9 million, flat since the start of the year. C21 said that income taxes paid in the quarter were $1.0 million with $0.3 million in capital expenditures on building a drive-thru in Sparks. Total liabilities have been reduced by $2.1 million year-to-date.
According to the company’s filing, at the end of the quarter, the company had a working capital deficit of $6,409,856 and an
accumulated deficit of $70,734,993.
Nevada Focus
C21 noted that it currently holds licenses in Nevada spanning the entire cannabis supply chain. With the winding down and sale
of its Oregon licenses and operations, the Oregon operations are described as ‘held for sale’ on the balance sheet and as ‘discontinued operations’ in the income statement.
Nevada though isn’t without its problems. The MD&A noted that the Nevada industry has seen sales slow from the peak in March/April 2021. The filing stated, “This is consistent with sales trends across other states. Silver State had total retail sales of $26.8 million
during the year ended January 31, 2023, as compared to $32.4 million in the prior year.”
Looking Ahead
The company’s MD&A stated that its strategic Initiatives over the next 12 months include:
(i) extending our Nevada retail footprint where we have a proven track record of success
(ii) continuing our disciplined approach to growth and financing
