Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss your retail expansion plans in Florida and how many additional stores you expect to support with the Ruskin and Rosa facilities?
A: (Robert Beasley - CEO, Cansortium Inc) We anticipate that the Ruskin and Rosa facilities will support an additional four to six stores. Ruskin is expected to come online mid-summer, and Rosa by the end of Q4 2024. The locations of these new stores will be strategically chosen with potential adult-use legalization in mind, focusing on areas that will drive sales under a new regulatory environment.
Q: What are your capital expenditure expectations for 2024, particularly concerning the cultivation projects at Ruskin and Rosa?
A: (Robert Beasley - CEO, Cansortium Inc) For Rosa, we are looking at about $6 million to reach Phase 1, which is fully funded. The main delay currently is securing power for the building, which is necessary to proceed with construction. Ruskin is already moving forward and will contribute to our cultivation capacity by mid-summer.
Q: Could you provide details on the restatement impact to adjusted EBITDA, particularly how the $6.7 million adjustment is distributed across the quarters?
A: (Jeffrey Batliner - CFO, Cansortium Inc) The breakdown of the $6.7 million adjustment is as follows: $3.8 million in Q1, $1.8 million in Q2, and $1.1 million in Q3. These adjustments are related to errors in our biological asset model and the misclassification of expenses.
Q: Are you considering expansion beyond your current markets of Florida, Pennsylvania, and Texas?
A: (Robert Beasley - CEO, Cansortium Inc) While we are focused on maximizing our operations in our existing markets, we are actively evaluating opportunities to expand into complementary markets in the Northeast and central U.S. Our team is prepared to manage additional growth, and we are looking for strategic opportunities that align with our long-term objectives.
Q: How are you preparing for the potential legalization of adult use in Florida?
A: (Robert Beasley - CEO, Cansortium Inc) We are closely monitoring the developments regarding adult-use legalization and are positioning our expansion plans to align with potential new regulations. This includes strategic location planning for new dispensaries and preparing for increased production capacity to meet the anticipated growth in demand.
Q: What are the main challenges you face with the Rosa facility's development?
A: (Robert Beasley - CEO, Cansortium Inc) The primary challenge with Rosa is securing adequate power supply to the facility, which is crucial for starting construction. We are working closely with the municipal power company to resolve this issue and move forward with the development as planned.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
