C21 Investments Inc (OTCMKTS:CXXIF) Posts A Stellar Growth Of 1,400% In Revenues In 2020

C21 Investments Inc (OTCMKTS:CXXIF) reported revenues of $37.7 million in 2020 and $9.5 million (up 365% YoY) in Q4, 2019.

Nevada-based operations and the Fernley-based Silver State Relief Dispensary contributed to the significant growth of C21 in 2020. To improve efficiencies, the company also streamlined its operations in Oregon. All these efforts helped the company to report positive cash flow in H2 2020.

Sony Newmann, CEO of C21, said the company focused on streamlining its operations to sustain in these difficult market conditions. He further said its Nevada operations are running at full capacity and improved bottom line in Oregon. The company is actively working to clinch growth opportunities.

Improves cash position

C21 reduced liabilities by $10 million and improved cash balance by $1 million in Q4 2019. The company also realized $23.9 million (non-cash impairment) as the goodwill of the assets in Oregon in Q4 2019. It is on the backdrop of the repricing of the assets related to cannabis in the last 12 months.

Strengthens balance sheet

After 2020, C21 acquired real estate assets of Phantom Farms to strengthen its balance sheet and reduce lease liabilities. Silver State Relief is operating continuously despite the imposition of coronavirus related restrictions. It is enjoying success in Nevada by introducing Oregon brands – Phantom Farms Flower and Hood Oil.

Three-year extension for the CEO

C21 extended an additional three years term for Sony. Under his leadership, the company streamlined and combined its operating assets to realize positive cash flow. Commenting on the extension of service for another three years, Sony said he will put in efforts to promote growth.

C21 expects to raise a favorable and debt financing with the support of Eight Capital and CB1 Capital Advisors, its advisors. The company will use the loan for Nevada based acquisitions, to retire current debt, and manage the current operations.

The balance of the outstanding note for $18.2 million held by Sony due on July 1, 2020, is differed to January 1, 2021. Sony will receive monthly payments until the retirement of the note. The company also extended the lease for Silver State Relief to July 31, 2023, with no change in terms and conditions.

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