Mr. Robert Beasley reports

CANSORTIUM REPORTS FIRST QUARTER 2023 RESULTS

Cansortium Inc. has released financial and operating results for the first quarter ended March 31, 2023. Unless otherwise indicated, all monetary results are presented in U.S. dollars.

"We are pleased to once again report double-digit revenue growth and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] margin expansion, coupled with another period of strong cash flow generation in the face of broader industry challenges," said chief executive officer Robert Beasley. "Our new store openings in Florida, continually improving our cultivation and increasing the mix of high-THC products are all contributing to our growth and profitability improvements in the state.

"In Pennsylvania, we have worked to optimize our inventory management while adding new products to shelves, which has led to increased sales in the state without any new store openings. And in Texas, although we are disappointed with the outcome of the proposed decriminalization and medical program expansion bills, we continue to believe the growth opportunity in Texas is exceptional, similar to the Florida market seven years ago. We are gaining ground in Texas and capturing market share, even without regulatory reform.

"Looking ahead, we plan to continue driving growth and profitability through new store openings, improved cultivation, operating efficiencies and inventory optimization as we execute our strategy and trend toward another year of strong growth and cash flow generation."

Q1 2023 financial highlights (versus Q1 2022):

• Revenue increased 12 per cent to $22.1-million compared with $19.7-million.
• Florida revenue increased 9.7 per cent to $18.2-million compared with $16.6-million.
• Adjusted gross profit increased 22 per cent to $14.1-million or 63.9 per cent of revenue compared with $11.5-million or 58.6 per cent of revenue.
• Adjusted EBITDA increased 56 per cent to $9.7-million compared with $6.2-million.
• Cash flow from operations improved 20 per cent to $5.1-million compared with $4.3-million.
• At March 31, 2023, the company had approximately $9.5-million of cash and cash equivalents and $57.9-million of total debt, with approximately 296 million shares outstanding.

Recent operational highlights:

• In Florida, Cansortium currently operates 31 stores and anticipates opening an additional three to five new stores by the end of 2023. Three of these are under contract and in the construction phase.
• In Florida, Cansortium launched its new dark chocolate bar, made with Fluent's high-quality cannabis extract and Caraibe 66-per-cent chocolate from Valrhona, the legendary French chocolatier.
• Entered into an agreement, subject to financing, to acquire a Florida property that will become a new 70,000-square-foot cultivation facility and 2.5-acre greenhouse.
• The company announced that it plans to move its headquarters from Miami to Tampa, Fla., and will create more than 30 new jobs in administration, finance, human resources, marketing, sales, operations and other key roles.
• In Pennsylvania, the company has implemented a more targeted inventory management strategy, which has led to organic sales growth in the state.
• In Texas, the company continued to make progress building out its operational footprint and is working to expand its delivery capabilities to support patient populations in Houston and Austin.

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: Wednesday, May 31, 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: 10021974

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 in 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.

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