By Robb M. Stewart
C21 Investments’ shares jumped Friday after the Canadian cannabis company said it retired debt that eliminates $6 million in annual principal repayment obligations, and reported a fourth straight year of positive cash flows despite a drop in revenue.
In morning trading, the shares were 16% higher at C$0.41 on the Canadian Securities Exchange, widening the year-to-date advance to 56%.
The Vancouver, British Columbia grower and distributor of cannabis and hemp products in the U.S. said it completed the full repayment of its $30 million senior secured note to Sonny Newman, the company’s president and chief executive.
The promissory note was originally issued in January 2019 with the acquisition of interests in two Nevada limited liability companies from Newman. The note, which carried an interest rate of 9.5%, was fully repaid with a $500,000 monthly principal repayment on Thursday.
C21 recorded a 12% fall in revenue to $28.9 million in the year through Jan. 31. but said cash flow from operations at $6 million was positive for a fourth straight year.
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