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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index gained 6.18 points to 175.19 Thursday, while the Canadian Securities Exchange Composite Index lost 2.82 points to 381.59. Nevada- and Oregon-focused cannabis producer C21 Investments Inc. (CXXI) lost three cents to 60 cents on 567,300 shares after releasing its preliminary fiscal fourth quarter and full-year 2020 results (for the period ending Jan. 31, 2020). C21 reported Q4 revenue of $9.5-million (U.S.), down from revenue of $10.5-million (U.S.) in Q3.
The company did not say whether it made money in the quarter, instead providing data on its adjusted EBITDA and gross margin. (Profits, where they appear in the cannabis industry, rarely come without a catch.) C21 had adjusted EBITDA of $2.9-million (U.S.) in Q4, better than its $2.2-million (U.S.) of adjusted EBITDA in Q3. Its gross margin remained the same at 42 per cent.
C21 lost $4.8-million (U.S.) in the previous quarter -- fiscal Q3 -- but $4.1-million (U.S.) of that was from an impairment charge. C21 actually generated positive cash flow from operations of about $2.2-million (U.S.) in that quarter. The company has a troubled balance sheet (more below) but, unlike many in the industry with poor balance sheets, C21 is nearly profitable.
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