Medical cannabis company Cansortium Inc. (CSE:TIUM.U) (OTC: CNTMF) reported second-quarter consolidated revenue of $6.1 million on Thursday, up by 19% from the second quarter of 2018, when its pro-forma revenue reached $5.1 million.
Cansortium achieved positive consolidated EBITDA of $1.8 million versus pro-forma EBITDA of $5.8 million in the second quarter of 2018. Consolidated adjusted EBITDA for the quarter was a loss of $2.6 million, compared to adjusted pro-forma positive EBITDA of $100,000 in the same quarter of the previous year.
Cansortium disclosed a net loss of $5.3 million for the quarter, or 3 cents per diluted share, versus pro-forma net income of $4.9 million, or 4 cents per diluted share in the second quarter of 2018.
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For the first half of 2019, the company reported consolidated revenue of $11.6 million, up by 37% from pro-forma revenue of $8.5 million in the first half of 2018.
It also disclosed consolidated first-half adjusted EBITDA loss of $6.6 million versus an adjusted pro-forma EBITDA loss of $1.4 million in the first six months of 2018.
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Cansortium revised its full-year 2019 outlook, halving projected revenue to around $40 million from the previous outlook of $80-82 million.
“While we continued to execute our strategy to expand cultivation, processing, and dispensaries during the second quarter, a combination of unexpected delays in construction needed in order to secure final regulatory approvals at our Tampa cultivation Phase 2 expansion, as well as delays in opening certain previously planned Florida dispensaries, led to second-quarter revenues that were lower than originally anticipated," CEO Jose Hidalgo said in a statement.
"As a result, we are experiencing an approximate six-month delay on our plans presented earlier in the year."
The revised outlook reflects the delays Cansortium is experiencing, the CEO said.
"Notably, with the increased cultivation capacity in Florida combined with the start of cultivation in Michigan and the anticipated increased demand in Texas, we have confidence in achieving our revised 2019 outlook, exiting the year with strong momentum and achieving profitability in the first quarter of 2020."
Other business updates upon the quarter’s ending include opening three new medical cannabis dispensaries in Florida, Cansortium's second medical cannabis dispensary in Puerto Rico and the receipt of approval to list on the OTCQB Venture Market.
The stock was down 6.38% at 88 cents at the time of publication Friday.
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