11:02:57 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



C21 Investments Inc
Symbol CXXI
Shares Issued 76,108,326
Close 2019-07-16 C$ 0.83
Market Cap C$ 63,169,911
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C21 Investments CEO Newman talks Nevada work plans

2019-07-16 10:03 ET - Shareholders Letter

Mr. Sonny Newman reports

C21 INVESTMENTS RELEASES LETTER TO SHAREHOLDERS

C21 Investments Inc. has released a letter from Sonny L. Newman, president and chief executive officer, to the company's shareholders. The letter follows herein and can also be accessed from the company's website.

July 16, 2019

Dear fellow shareholders,

It has been about a week since my appointment as president and chief executive officer of C21 Investments. With my first letter, I would like to briefly outline my strategy that has the potential to create long-term value for all of our shareholders. Like you, I have a vested interest in developing a path to a profitable, cash-flow-positive and well-capitalized company for future expansion.

I am in the process of analyzing our current capital structure, finances and company structure to develop a strategy for short-term break-even and long-term profitability, and it is clear we have work to do. Our Nevada operations remain strong, contributing 91 per cent of the company's revenue and all the profit. Oregon's saturated market continues to be a challenge; rightsizing and integrating our operations there will be our top priority over the next quarter. Eliminating non-critical expenses, reallocating assets and aligning our human capital are happening now and will continue until our Oregon operations are stabilized.

With our mature consumer packaged goods brands in Oregon, we have leveraged their success and launched into the Nevada market. Hood Oil Vape cartridges were launched on June 6, 2019, in our Silver State Relief dispensaries and have sold over 11,000 units contributing $302,000 of revenue (with gross margin of 25 per cent) in the two retail locations. The Phantom Farms brand will launch on the wholesale market later this month and in our retail locations in early September. Dab Society is also anticipated to launch in September. These are all well-respected brands in Oregon, and we look forward to expanding their reputation in the Nevada market.

I am most excited about the long-term potential of the Nevada market. With a state-mandated limit on retail locations, Nevada remains an attractive market for the foreseeable future. Over the next two quarters, expanding our successful vertically integrated model in Nevada will also be a top priority. We will be examining opportunities to acquire additional retail locations in Northern Nevada and the Las Vegas area, where volume is sufficient to scale and leverage our vertical model to maximize our profitability.

I would like to extend my heartfelt appreciation to all our employees, customers and shareholders for getting us to this point. Thank you for the opportunity to earn your confidence and trust.

Sonny L. Newman

President and chief executive officer

About C21 Investments Inc.

C21 Investments is a vertically integrated cannabis company that cultivates, processes and distributes quality cannabis and hemp-derived consumer products in the United States. The company is focused on value creation through the disciplined acquisition and integration of core retail, manufacturing and distribution assets in strategic markets, leveraging industry-leading retail revenues with high-growth potential multimarket-branded consumer packaged goods. The company owns Silver State Relief and Silver State Cultivation in Nevada as well as Phantom Farms, Swell Companies, Eco Firma Farms and Pure Green in Oregon.

We seek Safe Harbor.

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