Cansortium Raises $12M To Boost Operations In Florida, Michigan And Pennsylvania

Cansortium Inc. TIUM CNTMF has secured some $12 million in financing through a sale of roughly 17.14 million of its units at 70 cents per unit. The Miami company expects to close the private placement over the next few days.

The financing will boost its operations in Florida, which includes two cultivation facilities and 24 retail dispensaries, with additional three stores poised to open soon.

Why It Matters: Cansortium intends to utilize the proceeds to fund the completion of Phase 2 of its new cultivation facility in Sweetwater, which will double the facility's annual production capacity of high-quality flower to over 6,000 pounds. Moreover, the company will build a new building for processing and packaging to keep up with the increased flower supply. 

The company also plans to expand its Tampa cultivation facility by creating four additional grow rooms to enhance the supply of flower and biomass by roughly 2,400 pounds annually.

In Michigan, Cansortium will improve its existing cultivation facility as well as the additional support infrastructure.

In addition, the company also intends to strengthen its retail footprint by launching two new dispensaries in Pennsylvania, and an additional two stores in the Sunshine State, bringing it to a total of 31 retail locations.

Canaccord Genuity acted as a financial advisor to the company for the transaction.

CEO Robert Beasley said the company is in "a position to focus on expansion and growth."

"Cansortium's future has never been brighter, and management is focused on executing our operating plan and continuing to capitalize on our strong asset base," he added.

Management Changes: Beasley assumed the CEO's role in September, ahead of other management shake-ups, including the resignation of former CFO Marcos Pedreira.

In January, Cansortium appointed Beasley to the board of directors.