C21 Investments Inc. (OTCMKTS:CXXIF) has announced that it is planning to expand its growing and production facility in Nevada. The company also recently released unaudited results for the quarter ended October 31, 2020.
C21 posted revenue of $9.5 million
In the third quarter, the company reported revenue of $9.5 million with a record $8.9 million in revenue for its retail operations in Nevada. Same-store sales were up 5% sequentially with the company posting a gross profit of $5.9 million. The company had a positive adjusted EBITDA of 2.7 million for the seventh consecutive quarter while net income was $2.3 million.
Sonny Newman, the company’s CEO stated that the company posted record results in the quarter evidenced by the strong earnings. Newman said that the C21 has fortified its balance sheet following the announcement of a note restructuring and debenture backstop. For now, the focus is of C21’s growth strategy is expanding the cultivation and production facility in Nevada which will put the company in an excellent position to enhance retail operations in the state.
The company has continued to pay down debt and has reduced the principal amount payable of its notes by $1.1 million. This brings the total debt paid down to date by operations cash flow to around $6.5 million.
C21 to expand Nevada facility
On December 2, 2020, the company had announced its plans to expand the licensed Nevada cultivation and production facility. The 40,000 sq. ft. facility expansions will include existing operations and eleven new flowering rooms as well as two additional vegetative rooms. The expansion will see the company increase its canopy by 200% which will result in incremental 7,500 pounds of premium indoor glower as well as 3,000 pounds of biomass per year. This will increase the company’s vertical integration for in-house products and provided wholesale opportunities
C21 expects to fund this expansion internally at a cost of around $6 million. The expansion plans for the licensed facility in Nevada are subject to approval by local building agencies and C21 expects to finalize construction in the second half of 2021.