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Cansortium CEO talks future of Florida market in wake of Amendment 3 defeat

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While many licensed cannabis operators threw significant resources at expanding in Florida in anticipation of an adult-use market being legalized, Florida-based Cansortium Inc. (CSE: TIUM.U) (OTCQB: CNTMF) held steady, which ultimately looked like the right move after recreational marijuana failed at the ballot box.

CEO Robert Beasley said his company now has an edge heading into what could be a heady year of mergers and acquisitions.

Beasley recently spoke with Green Market Report about his top priorities heading into 2025.

This interview has been edited for length and clarity.

What hurdles and business obstacles do you expect Fluent is going to have to deal with and overcome in 2025?

Florida is going to be tough. We’re looking at a total knife fight.

It was a gold rush into this state in the anticipation of Amendment 3 passing. A lot of folks came in, bought up those smaller licenses, put a bunch of stores on the ground. Green Dragon’s a great example of that. They come in and dropped 34 stores overnight, almost. That’s a build-it-and-they’ll-come philosophy.

Well, we built it, and they didn’t come.

Now, our company didn’t do any of that. I decided I would catch it later, that I could not expend financial sums of this company based on a political outcome, because political outcomes are so uncertain.

Now all that supply’s got to come into the market, and it’s going to compress price. We started seeing it Nov. 6, and it’s going to continue until these players will kind of fold under.

When we did this transaction (with RIV Capital and Scotts Miracle-Gro), we acquired a bunch of cash. We’re getting a lot of calls, a lot of interested Florida players saying, “Hey, do you want to talk?” And it’s because we’ve gone up and everybody else is going down now. I’ll admit our sales are also being impacted, but we just happened to have transacted our way into a big cash position right as that happened. Call it luck.

So we’re anticipating a 10%-12% decrease in sales over the year. I’ve been trying to figure out how to publish that, because the winds are against us. The bell has rung, and we are going to have to just hunker down.

Along those lines, what sort of ripple effects are you expecting in the Florida market? Are you expecting any other operators to actually go under or go up for sale?

They won’t go under. The consolidation appetite is still pretty heavy. And we’re seeing more and more new money come in every day. You’re seeing a lot more of that creativity. And so these players won’t disappear. They’ll just be consolidated.

And we’re hoping to be a part of that. We’re buying, we’re out there ready to eat. We’re going to have to grow behind the curtain, and that means more M&A. For instance, we would buy someone a little bit smaller than us, let’s say an 11-store outfit or a smaller grow outfit.

And then we’ve got to get rid of that license. The crazy thing is license price. When I first started in this business, the license price was $50 million, and now it’s $4 million. Pretty soon in Florida, you’ll be able to get a license for $100,000, like you can a liquor license. And then what?

Any other legislative items in Tallahassee that you’re hoping are maybe going to get through this year to help out the Florida cannabis business industry at all?

Everything that’s being proposed now is kind of a whiplash from Amendment 3. I anticipate THC caps, store caps being proposed. Now, don’t get me wrong, as a business person, both of those are reasonable – if done reasonably. Do we want store caps? Well, no, but do we want to be Colorado? No, we don’t want to be that either.

THC cap? What we’re doing to this plant now is a little bit murderous. We’re convincing a plant that used this chemical element as a deterrent, as a pesticide, and we convinced it to produce 32% of its total volume. We could probably back off of that.

How do you feel heading into 2025 about the prospects for Fluent? Are you confident, for instance, that the rescheduling process and the nullification of 280E is going to be completed under the Trump administration?

I am. I think that that was one of the benefits of the cannabis industry from the election. I don’t know that we had a bad choice as far as candidate, because either candidate seemed to be supportive, or in Trump’s case, maybe at least agnostic to cannabis, which is sometimes the best you can hope for out of a politician.

And the process had already commenced. My concern is, what next? Does (marijuana) become an FDA-regulated product? Does that mean are we a pharmacy now? Do we have pharmacists in our stores? We have that requirement in both Pennsylvania and New York, and it adds a tremendous economic burden because pharmacists in that employee class, you’re not in cannabis anymore, you’re competing with Walgreens and CVS and so forth, and they’re very aggressive with their pharmacists, so that could be a problem.

The benefits to rescheduling are obvious and on its face, the detriments are not as obvious.



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Innocan Pharma 2024 earnings benefit from its beauty products

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Innocan Pharma Corp. (CSE: INNO) (OTC: INNPF) reported its audited financial results for the year ending Dec. 31, 2024, after the markets closed on March 31.

Innocan reported revenue of $5.4 million in the fourth quarter of 2024 versus $4.8 million in the same period the previous year. However, earnings fell sequentially from the third-quarter sales of $8.6 million.

For the full year, revenue increased 114.6% year-over-year to $29.4 million, compared to $13.7 million in 2023. This significant increase in revenue was primarily due to the robust sales performance of Innocan’s subsidiary, BI Sky Global Ltd., which reported an increase in revenue from online sales platforms due to the addition of new products.

BI makes high-performance non-CBD personal care and beauty products in the United States. It currently operates in online marketplaces, with plans to expand to direct-to-consumer sales and finally evolve to physical storefronts. Innocan holds 60% of BI’s shares, while Brandzon Co. Ltd. owns the remaining 40%.

The company also reported that its operating loss decreased by 67% to $1.2 million in 2024 versus $3.8 in 2023. The company’s cash levels grew to $5 million at the end of 2024 versus $3.8 million at the end of 2023. At the end of 2024, the company had a working capital of $8,444,000, compared with $6,207,000 at the end of 2023.

“This achievement reflects our team’s unwavering commitment to excellence, innovation and strategic execution,” CEO Iris Bincovich said. “We are focused on moving ahead aggressively on our two pathways, Human & Animal, with the LTP-CDB injection, our non-opioid chronic pain management solution.”

Going concern

Despite the improvements, Innocan reported a total comprehensive loss of $262,000 and a negative cash flow from operations of $1.5 million. Additionally, the company still has $35 million of deficit accumulated since its inception. Management said it plans to address these conditions by raising additional funds and generating larger volumes of revenue.

While the company’s negative cash flows from operations decreased during 2024, it still expects its negative cash flows from operations to significantly increase in the foreseeable future due to an increase in R&D and R&D-related expenses as a result of the start of clinical trials.



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Colorado gets its first psychedelic treatment center

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Colorado has now licensed its first psychedelic healing center since passing Proposition 122, called The Center Origin.

“We are honored to lead the way in bringing regulated psychedelic services to Colorado,” said Elizabeth Cooke, co-founder and CEO of The Center Origin. “This licensure represents not only a major step forward in mental health treatment and individual and community healing, but also a commitment to safety, education and responsible care for those exploring the therapeutic and transformative potential of psychedelics.”

The Center Origin

The Center Origin said it is dedicated to offering safe, guided psychedelic experiences facilitated by trained professionals in a controlled and supportive environment. It will also provide microdosing support to ensure a comprehensive and ethical healing process. The center said it will serve individuals seeking relief from conditions such as PTSD, depression, anxiety and end-of-life distress, among other mental health challenges.

The Center Origin said in a statement that it provides comprehensive in-house support to facilitators working with center clients and offers basic room rental services for facilitators bringing their clients. Additionally, the company said that clients are provided with thoughtfully crafted comfort items, including food and drinks, personalized gifts, and small luxuries to enhance their journey.

The clinic will not only provide a place for treatment, but has also established a training center in partnership with several Colorado Department of Regulatory Agencies-approved didactic training programs. The Center Origin’s co-founder and clinical director, Mikki Vogt, said clinical programs also include consultation services to facilitators-in-training and those seeking ongoing professional development.

In addition, the center said it offers monthly professional case conferences, a variety of ongoing provider training for continued professional development and a referral network of facilitators for clients to choose from.



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Delota continues on path to profitability with positive fourth-quarter results

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Delota Corp. (CSE: NIC) reported year-over-year revenue growth of 18% for the 12-month period that ended Jan. 31, primarily driven by direct-to-consumer sales through its 180 Smoke stores and online platform.

The company announced in January that it was shifting the end of its fiscal year to March 31 from Jan. 31, meaning fiscal year 2025 will have 14 months.

Delota reported total revenue of C$40.2 million for the 12-month period, compared to C$34.1 million for the previous year. Along with the sales increase, the company reported a profit of C$561,758, a significant improvement over the year-ago loss of C$2 million.

During the 12 months, cannabis sales through Delota’s Offside Cannabis stores contributed C$3.6 million, down slightly from C$3.8 million in fiscal 2024. The company attributed the decline to the closure of two underperforming stores during the year.

CEO Cameron Wickham celebrated the results, noting that revenue during the fourth quarter pushed the company past its target of C$40 million for the year.

“Looking ahead, we are well-positioned to accelerate growth through a strategic focus on M&A, leveraging our omnichannel platform and a robust customer base of over 280,000 registered accounts,” he said. “We will also prioritize strengthening our balance sheet and driving further profitability from our existing revenue base.”

For the fourth quarter, Delota’s total revenue ticked up just 1% to C$10.3 million, compared to C$10.2 million for the same period a year ago. However, cannabis sales during the quarter jumped 10% to $881,178.

The company also turned to profitability for the three-month period, reporting net income of C$253,846 in the fourth quarter, compared to a year-ago net loss of nearly C$1 million.

For the three and 12 months ended Jan. 31, Delota’s gross margin ticked down slightly to 37% and 39%, respectively, compared to 38% and 40% in fiscal 2024.

Going concern

In regulatory filings, the company noted that the latest financial statements were prepared on a going concern basis. However, Delota noted that it expects to continue normal operations for the foreseeable future and to be able to “realize its assets and discharge its liabilities in the normal course of business.”

As of Jan. 31, the company had total liabilities of C$13.6 million against total assets of C$14.8 million.

The company said it intends to finance future requirements through a combination of debt or equity financing.



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