C21 Investments Announces Audited Two-Month Stub Period Financial Results, Completes Acquisition of Third Nevada Dispensary

In a strategic move to align its reporting schedule with industry peers, C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) has announced the filing of its audited financial statements and management discussion and analysis for the two-month stub fiscal period ended March 31, 2024. This transition from the previous January 31 fiscal year end to a March 31 fiscal year end is expected to better equip the company's auditors to complete their work in a timely manner moving forward.

C21 Investments Delivers Solid Financial Performance in Stub Period, Expands Retail Footprint in Nevada

Stub Period Financial Highlights: Revenue and Cash Flow Remain Strong

During the two-month stub period from February 1, 2024 to March 31, 2024, C21 Investments reported audited financial results that showcased the company's operational resilience and financial discipline. The company generated revenue of .5 million and cash flow from operations of {{royaItemContent}}.9 million, demonstrating its ability to maintain strong financial performance even during a transitional period.The company's Chief Executive Officer and President, Sonny Newman, expressed his satisfaction with the stub period results, stating, "Our operations continued to perform well in this stub period. Retail sales run rates and margins were comparable to the previous quarter, and we remained one of the only positive free cash flow public companies in U.S. cannabis."

Expanding Retail Presence in Nevada: Acquisition of Third Silver State Relief Dispensary

Subsequent to the stub period, C21 Investments completed the acquisition of its third Silver State Relief dispensary in Nevada. The new 6,500 square-foot, purpose-built dispensary is located in South Reno and held its grand opening on June 26, 2024.This strategic acquisition aligns with the company's focus on expanding its retail footprint in key markets. Sonny Newman commented, "With the exciting launch of our third Silver State Relief dispensary at the end of June, we are currently focused on ramping our new store and continue to pursue additional opportunities in the market."

Navigating Regulatory Challenges: MCTO Status Update

In May 2024, the company applied for and was granted a management cease trade order (MCTO) from the British Columbia Securities Commission due to an expected delay in filing its annual financial statements and related documents. This delay was a result of the company's transition to the new fiscal year end.With the successful filing of the annual filings and the stub period filings, the company believes it has satisfied the conditions of the MCTO and expects the order to be revoked. Sonny Newman stated, "With the filing of the Annual Filings by the Company on July 22, 2024 and today's filing of the Annual Stub Filings, the Company believes that it has satisfied the conditions of the MCTO in order to have the MCTO revoked."

Non-GAAP Measures: Providing Transparency and Insight

In addition to reporting its financial results in accordance with U.S. Generally Accepted Accounting Principles (GAAP), C21 Investments also utilizes non-GAAP financial measures to provide investors with a more comprehensive understanding of the company's performance.One such measure is "Free Cash Flow," which the company defines as cash provided by operating activities from continuing operations minus capital expenses for property and equipment. This metric offers valuable insight into the company's ability to generate additional cash from its ongoing business operations.By providing these non-GAAP measures, C21 Investments aims to offer investors a more transparent and insightful view of the company's financial health and operational efficiency, enabling them to make more informed decisions.

Positioning for Future Growth: Aligning Reporting with Industry Peers

The transition to the March 31 fiscal year end is a strategic move by C21 Investments to better align its reporting schedule with that of its industry peers. This alignment is expected to enhance the company's ability to complete its audits in a timely manner, ultimately improving transparency and communication with investors.Sonny Newman emphasized the importance of this change, stating, "This transition from our previous January 31 fiscal year end to a March 31 fiscal year end will better align the Company with the reporting schedule of our peers, and better equip our auditors to complete their work in a timely manner moving forward."By streamlining its reporting processes and enhancing transparency, C21 Investments aims to position itself for continued growth and success in the rapidly evolving U.S. cannabis market.