C21 Investments Announces Year End Results

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C21 Investments Announces Year End Results

Strong performance highlighted by Operating Cash Flow up 73%,
Adjusted EBITDA up 82% Year-over-Year

VANCOUVER, May 27, 2021 – C21 Investments Inc. (CSE: CXXI and OTCQX: CXXIF) (“C21” or the
“Company”), a vertically integrated cannabis company, today announced unaudited results for its fiscal year
ended January 31, 2021. Upon completion of its auditor’s internal review process, the Company’s audited
financials will be filed on SEDAR (www.sedar.com). All currency reported in U.S. dollars (unless otherwise

Fiscal Year Financial Highlights (February 1, 2020 to January 31, 2021):

• Revenue of $36.1 million – same store sales in Nevada up 6% despite impact of Q1 state-mandated
pandemic restrictions
• Gross Profit of $18.7 million – Gross Margin (before fair value adjustments) of 47%
• Income from Operations of $7.5 million – a $8.7 million improvement over last year
• Operating Cash Flow1 of $12.0 million – up 73% over last year – OCF Margin of 33%
• Working Capital improvement of $27 million
• Adjusted EBITDA1 of $9.8 million – up 82% over last year

Q4 Highlights (November 1, 2020 to January 31, 2021):

• Revenue of $9.1 million – same store sales in Nevada up 10% over Q4 last year
• Gross Profit of $5.5 million – Gross Margin (BFVA) of 54% – up 630 bps over Q3
• Income from Operations of $3.0 million
• Operating Cash Flow1 of $3.8 million – up 21% over Q3
• Current Liabilities reduced by $19.7 million from last quarter
• Adjusted EBITDA1 of $2.9 million – up 10% over Q3 – a 32% EBITDA Margin
• Announced planned cultivation expansion in Nevada – expects to increase canopy and production
capacity by 200%
• Announced divestment of select non-core assets in Oregon
• Appointed Todd Harrison to the Company’s Board of Directors

Management Commentary:

“C21 has delivered strong performance for the fiscal year, generating outsized operating cash flows of $12
million,” said Sonny Newman, President and CEO of C21. “We have transformed our balance sheet by
eliminating a $27 million working capital deficit. Our relentless focus on execution is clearly delivering
results. We have achieved our stated objectives of fortifying our balance sheet and driving efficiency to the
bottom line, resulting in significant After-Tax Cash Flow. The evidence is in our numbers. For fiscal 2021,
we are reporting an after-tax Operating Cash Flow margin of 25% or C$0.11 per share.”

Mr. Newman added, “Our Q4 results represent a baseline for the profitable, scalable business we have built
in Nevada. Looking ahead, we are excited with our Nevada cultivation expansion coming online next month.
We are in an excellent position to extend our retail footprint as we work with Needham and Company to
pursue accretive growth opportunities.”

2021 Financial Highlights:

Revenue for the year was $36.1 million, down from $37.7 million, reflecting the impact of the sale of Oregon
assets during the period. Nevada operations delivered record results with $33.5 million in revenue. Same
store sales were up 6% despite the Q1 state mandated in-store shutdowns. The Nevada segment generated a
54% Gross Margin for the year and $12.5 million in Net Income Before Tax.
Gross Profit for the year was $18.7 million, with Gross Margin of 47% (before fair value adjustments). Of
note, Q4 Gross Margin was a record 54% (BFVA), driven by stronger performance in Nevada and from the
divestment of Oregon assets. This delivered $9.8 million of Adjusted EBITDA1 for the year, up 82% yearover-year.
Operating Cash Flow1 of $12.0 million (before working capital changes) was reported for the year, up 73%
from 2020. This cash flow generation enabled C21 to pay down $7.0 million of debt in the period as well as
$2.8 million of income tax. Cash Provided by Operating Activities (after working capital changes) was $9.9
million, up 68% year-over-year.
C21 reported Income from Operations of $7.5 million for the year, a $8.7 million improvement over last
year, driven by stronger gross margins and reduced operating expenses. SG&A expenses were $7.1 million
(20% of revenue) down from $10.4 million (28% of revenue) reflecting management’s continued focus on
driving greater efficiency in its operations.
The Company reported a Net Loss of $6.1 million for the year, which was driven by non-cash accounting
items of $10 million, including changes in fair value of derivative liabilities (see MD&A). Excluding these
non-cash items, Adjusted Net Income1 was $3.9 million for the fiscal year and $1.7 million for Q4.
The C21 Balance Sheet reflects the results of restructuring activities in Q4. Working capital improved by
$27 million with conversion of debentures in the period and the term out of debt obligations over 30 months.
Fortifying the balance sheet provides a strong foundation for growth and better access to capital markets.
Cash position at year end was $6.2 million, up from $3.4 million at the end of Q3. Current liabilities were
reduced to $15.7 million from $35.4 million at the end of Q3 (see balance sheet summary provided).
Given the strong financial performance reported for FY 2021, management has announced the removal of
the going concern note from its audited financial statements.

1 See non-IFRS Measures below for “Adjusted EBITDA”, “Operating Cash Flow”, “After-tax Operating Cash Flow”, and “Adjusted Net Income”

Non-IFRS Measures:

“Adjusted EBITDA”, “Operating Cash Flow”, “After Tax Operating Cash Flow”, and “Adjusted Net
Income” are supplemental, non-GAAP financial measures. The Company defines EBITDA as earnings
before depreciation and amortization (excluding rent classified as lease amortization), income taxes, and
interest. Additionally, the Company’s Adjusted EBITDA presented above excludes fair value adjustments,
accretion, impairment charges, one-time transaction costs and all other non-cash items. The Company has
presented “Adjusted EBITDA”, “After tax operating cash flow”, and “Adjusted net income” because
management believes these are useful measures for investors when assessing and considering the Company’s
continuing operations and prospects for the future. Furthermore, “Adjusted EBITDA” is a commonly used
measurement in the financial community when evaluating the market value of similar companies. “Adjusted
EBITDA”, “After tax operating cash flow”, and “Adjusted Net Income” are not measures of performance
calculated in accordance with IFRS, and these metrics should not be considered in isolation of, or as a
substitute for, the measurement of the Company’s performance prepared in accordance with IFRS. “Adjusted
EBITDA,” as calculated and reconciled in the table above, may not be comparable to similarly titled
measurements used by other issuers and is not necessarily a measure of the Company’s ability to fund its
cash needs.

Fiscal Year End Balance Sheet:

Financial Summary:

Adjusted EBITDA:

After-Tax Operating Cash Flow:


For further inquiries, please contact:

Media contact:
Mattio Communications
Investor contact:
Michael Kidd
Chief Financial Officer and Director
+1 833 BUY-CXXI (289-2994)

About C21 Investments Inc.:

C21 Investments is a vertically integrated cannabis company that cultivates, processes, and distributes quality cannabis
and hemp-derived consumer products in the United States. The Company is focused on value creation through the
disciplined acquisition and integration of core retail, manufacturing, and distribution assets in strategic markets,
leveraging industry-leading retail revenues with high-growth potential multi-market branded consumer packaged
goods. The Company owns Silver State Relief and Silver State Cultivation in Nevada, and Phantom Farms, Eco Firma
Farms in Oregon. These brands produce and distribute a broad range of THC and CBD products from cannabis flowers,
pre-rolls, cannabis oil, vaporizer cartridges and edibles. Based in Vancouver, Canada, additional information on C21
Investments can be found at www.sedar.com and www.cxxi.ca.

Cautionary Statement:

Certain statements contained in this news release may constitute forward-looking statements within the meaning of applicable securities legislation. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include the Company’s positioning in the United States cannabis industry, the completion of the Company’s auditor’s internal review process and timely filing of audited financials, the ability of the Company’s Nevada retail locations to
operate at record quarterly run rates, the performance of the Company’s operations generally, and specifically its Nevada retail operations, during the pendency of the COVID-19 pandemic, the ability of the Company to continue to execute its strategies to improve the Company’s Balance Sheet, the progress, timing and expected yield of the Company’s Nevada cultivation expansion,
the performance of the Company’s brands and the continued demand for cannabis products, the ability of the Company to successfully pursue accretive growth, and the nature and extent of the impact of the COVID-19 pandemic.
The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not limited to, risks and uncertainties arising from the
impact of the COVID-19 pandemic on the Company’s operations, and other factors, many of which are beyond the control of the
The forward-looking statements contained in this news release represent the Company’s expectations as of the date hereof and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.