C21 Investments Inc (OTCMKTS:CXXIF) posted a 15% QoQ growth to $9.4 million in revenues in Q2 2020. Its cash flow rose by 200% QoQ to $4.2 million in Q2 2020.
Reports positive adjusted EBITDA
Its retail operations posted a growth of 23% QoQ in Q2 2020 to $8.5 million. In the cannabis sector, Nevada’s retail operations are more profitable by delivering a net income of $2.6 million.
The company also benefitted from cost-saving measures implemented in the past 12 months. Streamlining and consolidation of Oregon operations helped the company to deliver positive EBITDA in Q2 2020 for the first time. C21 improved margins in Q2 2020 because of reduced delivery expenses and higher sales.
Sonny Newman, CEO of C21, said significant cash flow and positive earnings per share demonstrate that it accomplished a vital milestone in this quarter. It results from dedication and hard work put in by the teams in the past 12 months. The company is now in a position to post rapid growth in the next quarter.
Nevada’s dispensaries reported impressive growth in retail revenues in Q2 2020 to more than $3 million. Sonny is confident that the company could replicate the success achieved in Q2 2020 because it is finalizing the debt facility for more financial flexibility.
Developments after Q2
C21 is servicing its debt continuously and reduced the principal amount by further $1.2 million. Therefore, its debt stands at $4.8 million as of today. The company said its director – Bruce Macdonald, will act as non-EC of the board.
Damages to the outdoor farm in Oregon
C21 reported damage to its outdoor farm in Oregon in September because of wildfires. However, the fire break protected the property. Its plants in its outdoor farm suffered smoke damage and experienced extreme heat. The company will book loss from the damaged outdoor farm in October 2020. As of July 31, 2020, the value of its biological assets is $288,446.
Qualifies for trading on OTCQX Best Market
C21 is qualified for trading on the OTCQX Best Market. It received an upgrade from OTCQB® Venture Market to OTCQX and commences trading under the symbol – CXXIF from today.