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Cision Canada
13 hours ago
- Business
- Cision Canada
Mercanto Reports Q3 2025 Financial Results and Provides Operational Update
MONTREAL, June 27, 2025 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company"), released its financial results for the third quarter ended April 30, 2025. The Company also provided an operational update and reiterated its strategy amid an evolving cannabis market in Quebec and across Canada. Financial Highlights for Q3 2025 (vs. Q3 2024): The Company notes that while topline revenue declined compared to the same period last year, results reflect the impact of the recently completed rationalization process in Quebec and broader industry headwinds. While the rationalization is now concluded, its effects are expected to persist through Q4. Nonetheless, this positions the Company for medium- to long-term benefit as Quebec's cannabis market stabilizes and new categories such as vapes begin to roll out. Notably, Mercanto maintained an adequate working capital position and zero long-term debt. "We are operating in one of the toughest markets, and while results reflect a contraction, we believe our business is resilient and structurally sound," said Eric Ronsse, CEO of Mercanto. "Q3 was a transition quarter as we took most of the impact of rationalization in Quebec, focused on margin-improving products, and on the development of other markets, notably with the launch of three flavours of Deckies THC pouches in New Brunswick. Our strategy remains clear: optimize the mix, minimize waste, and maintain a lean, focused operation. We are building a durable business, not chasing inflated growth." Vape Category Entry & Battery Listing Following the second quarter-end, Mercanto announced it had secured one of only two authorized battery listings for Quebec's new vape category, a strategic win that may help offset short-term softness in financial results and contribute to the Company's post-rationalization recovery, set to launch in Fall 2025. The Company's approved device, the M3B+ from global manufacturer CCELL, will be distributed in all 104 cannabis stores across Quebec. The Quebec cannabis authority has projected that vape products will represent 11% of total provincial cannabis sales within the first year of launch, with approximately 50% of that volume being incremental to the market. In FY2024, Quebec cannabis sales totaled $620 million, indicating a projected vape market of $68 million. Mercanto's battery will be one of only two available to power 25 vape cartridge SKUs. "With the upcoming launch of vapes in Quebec, we are uniquely positioned to benefit from a tightly controlled product rollout where shelf space is limited and quality matters," said Ronsse. "We expect our hardware distribution to be financially positive" The Company has participated in the vape cartridge submission process, with results expected to be announced in the coming weeks. Outlook The Company acknowledges that the cannabis sector remains volatile and more unstable than ever; however, Mercanto's business model has proven resilient, and its future prospects appear increasingly strong. Mercanto's lean structure, cash-focused operations, and diversification into growth segments position it well for long-term value creation. The Company anticipates gradual sales growth as the Quebec rationalization process has now concluded, with its effects expected to last through Q4, positioning the Company to benefit from a more streamlined market environment in the medium to long term. Forward-Looking Information Disclaimer: This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "expect," "plan," "intend," "estimate," "may," "will," "should," "potential," "proposed," or similar expressions. Forward-looking statements in this document include, but are not limited to, statements regarding Mercanto Holdings Inc.'s future business plans, operations, growth potential, market conditions, product launches, and financial outlook. These statements are subject to 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. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SOURCE Mercanto Holdings Inc.
Yahoo
30-01-2025
- Business
- Yahoo
The Good Shroom Co Inc. announces Corporate Name Change to Mercanto Holdings Inc., provides a Market Expansion Update and adoption of New Stock Option Plan
MONTREAL, Jan. 29, 2025 /CNW/ - The Good Shroom Co Inc. (TSXV: MUSH) ("TGSC" or "the Company"), an emerging cannabis company with a focus on innovation, announces that the Company has adopted a new "fixed up to 20%" stock option plan (the "New Fixed Option Plan"). The New Fixed Option Plan received conditional TSX Venture Exchange ("TSXV") approval and shareholders of the Company approved the New Fixed Option Plan at the Company's Annual General Special Meeting of the Shareholders' held on January 29, 2025 (the "Meeting"). The Company is also pleased to announce that shareholders approved the change of its name to "Mercanto Holdings Inc." (the "Name Change") at the recent Meeting. The Company's trading symbols on the TSXV will remain unchanged. As part of the Name Change, the common shares of the Company have been assigned new CUSIP 58757P107 and ISIN CA58757P1071 numbers. The Company would like to thank its shareholders for their continued support, as all matters that were put before them at the Meeting were approved. TGSC is pleased to announce the re-election of Eric Ronsse, Franck Aton, Steve Saviuk and Michel Dahan, to its board of directors (the "Board"). Also, at the Meeting, shareholders appointed Raymond Chabot Grant Thornton LLP as TGSC's auditor for the ensuing year. For more information on these and other matters voted on at the Meeting, see TGSC's information circular dated December 31,2024 that is available on TGSC's SEDAR profile at Market Expansion Update TGSC is pleased to provide an update on its national expansion strategy. The innovative product, DYP's THC-infused pouches, have been well received in Alberta. Multiple purchase orders have been successfully fulfilled, and sales are ramping up steadily. Results from Alberta will begin to reflect in the Company's Q3 performance and subsequent quarters. In addition, TGSC is launching a new THC-infused pouch brand, Deckies, in Ontario this week. The Company anticipates adequate traction in this market, with the sales results also expected to contribute positively to Q3 and beyond. As the national expansion progresses, the Company will continue submitting its THC-infused pouches across the country in response to product calls. With the Ontario and Alberta launches, the foundation for broader market growth is firmly underway. Quebec Market Update TGSC anticipates receiving the results of its submissions in Quebec on Friday, January 31, 2025. The outcomes of these submissions will significantly influence the Company's expansion in this market, with the results expected to reflect in late Q4 and into fiscal 2026, beginning August 1, 2025. New Fixed Option Plan The New Fixed Option Plan, which replaced the Company's "rolling up to 10%" stock option plan, was adopted to comply with Exchange Policy 4.4— Security Based Compensation ("Policy 4.4") which was amended on November 24, 2021. The purpose of the New Fixed Option Plan is to give to directors, officers, employees, management company employees, consultants and Eligible Charitable Organizations (as such term is defined in Policy 4.4) of the Company and its subsidiaries (collectively "Eligible Persons"), as additional compensation, the opportunity to participate in the success of the Company by granting to such Eligible Persons stock options ("Options"), exercisable over a period of up to ten (10) years as determined by the Board, to buy shares of the Company at a price not less than the market price prevailing on the date the Option is granted less applicable discount, if any, permitted by the policies of the TSXV and approved by the Board. Up to 10,154,937 Options are issuable under the New Fixed Option Plan. Additional details regarding the Fixed Option Plan are contained in the Company's information circular dated December 31, 2024, which has been filed on under the Company's profile. About The Good Shroom Co Inc. The Good Shroom Co Inc. (TSXV: MUSH) is an emerging cannabis company that sells a variety of traditional cannabis products and innovations, with its primary market in Quebec but expanding nationally. For more information, visit Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. SOURCE Good Shroom Co Inc. (The) View original content to download multimedia: Sign in to access your portfolio
