Mr. Robert Beasley reports

CANSORTIUM REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS

Cansortium Inc. has released its financial and operating results for the fourth quarter and full year ended Dec. 31, 2022. Unless otherwise indicated, all results are presented in United States dollars.

"We delivered strong revenue growth and material cash flow generation in 2022 despite a challenging backdrop for the broader cannabis industry, as well as the adverse impact we experienced in Florida from Hurricane Ian," said chief executive officer Robert Beasley. "Within our home market of Florida, we captured meaningful market share driven in part by our cultivation improvements and new store openings over the course of 2022. In addition, our exit from Michigan last August enabled us to strategically reallocate capital and sharpen focus on our core operations.

"Looking ahead, we expect to continue expanding our Florida footprint through new store openings, while further improving our cultivation to increase both capacity and flower quality. In Texas, we are making progress on building out operations in the state as we aim to maximize our first mover advantage as one of only three licence holders in the market. We look forward to delivering another year of strong growth and cash flow generation as we continue to execute on our strategy in 2023."

Q4 2022 financial highlights (versus Q4 2021)

• Revenue increased 28 per cent to $23.5-million compared with $18.3-million;
• Florida revenue increased 26 per cent to $19.4-million compared with $15.4-million;
• Adjusted gross profit was $700,000 compared with $11.8-million, with the decrease driven by IAS 41 addendum leading the company to recognize income tax on biologicals that was not accounted for the first three quarters in 2022. Excluding this one-time impact, adjusted gross profit in Q4 2022 was $11.7-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 54 per cent to $7.9-million compared with $5.1-million.

FY 2022 financial highlights (vs. FY 2021)

• Revenue increased 34 per cent to $87.7-million compared with $65.4-million;
• Florida revenue increased 31 per cent to $73.2-million compared with $55.7-million;
• Adjusted gross profit was $44.0-million or 50.1 per cent of revenue, compared with $41.9-million or 64.1 per cent of revenue;
• Adjusted EBITDA increased 28 per cent to $25.1-million compared with $19.6-million;
• Cash from operations improved significantly to $19.1-million compared with ($5.0-million);
• At Dec. 31, 2022, the company had approximately $8.4-million of cash and cash equivalents and $57.7-million of total debt, with approximately 314 million fully diluted shares outstanding.

Operational highlights

• In Florida, Cansortium recently opened two new stores in Pensacola and one in Jacksonville Atlantic Beach, bringing its total Florida footprint to 31 stores. The company anticipates opening an additional three to five new stores by the end of 2023. Three of these are already under contract and going through construction.
• After the damage caused by Hurricane Ian in Q3 2022, the company's Sweetwater facility is now fully operational with recent harvests reaching a record high 30-per-cent-plus THC flower potency.
• In Pennsylvania, Cansortium recently began the expansion of its Hanover dispensary to maximize the store's capacity for patients.
• In Texas, the company continued to make progress building out its operational footprint by hiring a president and dedicated team to run the state operations. More recently, Cansortium completed its first THC sale last week, implemented an advertising campaign to build awareness for new patients, and went under contract for a delivery centre in Houston, Tex.
• Based on the Florida OMMU data over the last nine weeks, Cansortium has consistently held its position as No. 6 in the state in terms of THC sales and reached record levels for the week ended April 20, 2023.

Conference call

The company will host a conference call and live audio webcast today at 4:30 p.m. Eastern Time to discuss its financial and operational results, followed by a question-and-answer period. Interested parties may submit questions to the company prior to the call by e-mailing investors@cansortiuminc.com.

Date:  Monday, May 1, 2023

Time:  4:30 p.m. Eastern Time

Toll-free dial-in number:  800-319-4610

International dial-in number:   604-638-5340

Conference ID:  10021840

Please call the conference telephone number five to 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Elevate IR at 720-330-2829.

The conference call will also be available for replay via the news and events section of the company's investor relations website.

About Cansortium Inc.

Cansortium is a vertically integrated cannabis company with licences and operations in Florida, Pennsylvania and Texas. The company operates under the Fluent brand and is dedicated to being one of the highest-quality cannabis companies for the communities it serves. This is driven by Cansortium's unrelenting commitment to operational excellence in cultivation, production, distribution and retail. The company is headquartered in Miami, Fla.

Cansortium's common shares trade on the Canadian Securities Exchange under the symbol TIUM.U and on the OTCQX Best Market under the symbol CNTMF.

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