Miami, Florida-based Cansortium is a multi-state operator of cannabis cultivation and dispensary licenses in the USA. They have large presences in FL, PA, MI, and TX. Their main brand is Fluent. The company operates in one of the largest cannabis markets on earth but is Cansortium stock a buy?
Let’s take a closer look at Cansortium to see if this cannabis stock is a strong buy.
Cansortium Fundamental Analysis
HQ: Miami, FL, USA
Symbol: CNTMF (OTC), TIUM.U (CSE)
Cansortium Focus: Strong
Cansortium is a cultivator of cannabis with manufacturing facilities for concentrate and infused products along with dispensary locations for distribution and retail. Their largest and most known brand is Fluent.
Company Size: Neutral
Market Cap: US $93.1 million
Enterprise Value: $165.1 million
# of employees: 350
Secondary: Michigan, Texas, Pennsylvania
Majority: Cansortium FL LLC, Cansortium PN LLC, Spirit Lake Rd Nursesry, Cansortium Health Partners, Cansortium Holdings
Cansortium Operations: Neutral
Present Productions: Cultivation sites in Michigan, Texas, and Florida. Their new 43,000 sqft facility in Sweetwater, FL just received approval and opened.
Future production: They are concentrating on their FL operations now with focus on increasing dispensary locations.
Direct sales: Yes, and home delivery in Texas and Florida
Store networks: 3 dispensaries in PA open soon, 26 in Florida
Supply agreements: None
Vertically integrated: Yes
Horizontally diversified: No
Company Financials: Neutral
Revenue (ttm): $60.57 million
Outstanding shares (diluted): 126.2 million
Company Management: Weak
CEO: Robert Beasley
CPO: Henry Batievsky
CFO: Patricia Fonseca
CLO: Todd Buchman
EVP: Samantha Senne
CEO Beasley is a lawyer with licensing experience in cannabis. Founder Batievsky is the cheif production officer with a background in real estate and tax law. Not a lot of experience with running a cannabis business here though.
Cansortium Branding: Strong
Fluent is their leading brand in Florida with products of capsules, drops, suppositories, topicals, syringes, dried flower, pre-rolls, cartridges and edibles. Fluent was launched in May 2019.
Company Valuation: Neutral
Current share price: US $0.743
52 week high/low: $0.549-1.35
Price to Sales: 3.31
They cancelled convertible notes by converting promissory notes issued in Feb. 2019 for $10 million into common shares and redeeming $5 million of the notes with cash. They did this with 8.4 million common shares at $0.60. They have $26 million of total cash with almost $77 million of total debt.
Risks of Buying Cansortium Stock: Medium
The risks of investing in any cannabis company are currently high given the newness of the market. The risks of investing in this company are very high, given their poor financial health, focus on only one market, and tight revenue margins.
Bottom Line: Is Cansortium Stock a Buy?
Cansortium is a vertically operated cannabis company with operations focusing in Florida but with minor operations in PA, MI, and TX. They previously had operations in Puerto Rico, Canada, and Colombia but these were all recently discontinued after extremely unhealthy financials were the result.
They have done a lot of fundraising through issuing shares. In April 2021 they issued 11.8 million shares, in one offering with another 5.2 million in another. They also secured a loan for $71 million in April 2021 with interest at 13% per annum, payable quarterly. They’ve done this because they are not profitable.
Related: Should You Buy Cresco Stock?
Q1 2020 net losses were almost $14 million. The good news is that Q1 2021 net losses were only $5 million, a significant improvement. With the divesture of their international operations, and significant debt restructuring, they do have the opportunity to get expenses under control and get closer to profitability.
We like the strong presence they have in Florida, one of the largest and most profitable cannabis markets in the USA. We also like the stock price does have some value built in, given P/S, Price/Book, and EV/Revenue are all less than 3.50. The stock does have some room to run as long as the management team can continue cutting costs and increasing revenue.
For all these reasons we believe Cansortium Stock is a buy and we rate this stock as Strong.
Is Cansortium Stock a Buy?
About Cannin: Your Cannabis Stocks Resource
78% of Cannin’s fundamentals prove true within 30 days or less on 100+ recommendations over the past 2 years.
Cannin is your #1 trusted resource for cannabis stocks. Our global team of experts evaluates all emerging cannabis stock investing opportunities. We aggregate hundreds of hours of financial research and provide tips on the best cannabis stocks for 2021.
Use Cannin as your resource for:
Market analysts expect the marijuana and hemp industry will have an annual value exceeding $75 Billion in the next decade. Is it too late to invest in marijuana stocks? No! This is the perfect time to invest.
Are you looking to buy stock in hemp companies or marijuana companies for 2021? Interested in new penny hemp stock companies? Looking for the best Canadian cannabis stocks to invest in? Looking to leverage the power of algorithmic stock trading to beat the cannabis market? We can help.
Predict price movements of cannabis stocks several hours in advance with our proprietary algorithmic stock trading software.
- +30% Gains in 2020
- +49.8% Gains in 2019
- Backtested since 2012
We’re so confident you’ll love our algotrading cannabis stock signals, we’re willing to give you a one-month risk-free trial to see it for yourself.
Profit from the best cannabis stocks – we’ll show you how at cannin.com.