Mr. Robert Beasley reports

CANSORTIUM REPORTS SECOND QUARTER 2023 RESULTS

Cansortium Inc. has released financial and operating results for the second quarter ended June 30, 2023. Unless otherwise indicated, all financial results are presented in U.S. dollars.

"We continued to drive revenue growth and cash flow generation during the second quarter through a combination of organic growth as well as new store openings in Florida," said chief executive officer Robert Beasley. "We have opened four new stores in Florida this year that are still ramping and we continue to expect opening an additional one to two new stores before year-end, all while continuing to improve our cultivation to deliver more high-THC [tetrahydrocannabinol] products.

"In Pennsylvania, we generated another quarter of organic growth as our inventory optimization and expanded product assortment continues to resonate with patients. And in Texas, we logged our first B2B sale during the quarter and continue to expect opening our brick-and-mortar delivery centre in Houston in the coming months. We look forward to executing on our plans as we deliver another year of revenue growth and cash flow generation in 2023."

Q2 2023 financial highlights (versus Q2 2022):

• Revenue increased 9 per cent to $24.4-million compared with $22.4 million.
• Florida revenue increased 11 per cent to $20.1-million compared with $18.2-million.
• Adjusted gross profit increased 5 per cent to $15.8-million or 64.6 per cent of revenue, compared with $15-million or 67 per cent of revenue.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $8.6-million compared with $10.2-million, with the decrease primarily driven by increased selling, general and administrative related to new store openings that are still ramping.
• Cash flow from operations for the three months ended June 30, 2023, was $4.8-million compared with $5.8-million in the prior year.
• At June 30, 2023, the company had approximately $8.8-million of cash and cash equivalents and $59.3-million of total debt, with approximately 298 million shares outstanding.

Recent operational highlights:

• In Florida, Cansortium currently operates 33 stores and anticipates opening an additional one to two new stores by the end of 2023.
• The company appointed John Mazarakis to the board of directors, who brings over 25 years of entrepreneurial, operational and managerial experience to Cansortium.
• The company completed its headquarters relocation from Miami to Tampa, Fla., and will create more than 30 new jobs in administration, finance, human resources, marketing, sales, operations and other key areas.
• In Texas, the company completed its first business-to-business sale and expects to open its brick-and-mortar delivery centre in Houston by the end of the year.

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, Aug. 28, 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: 10022237

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 Tampa, Fla.

We seek Safe Harbor.