RE:Very promising results No doubt that Q2 and Q3 will show substantial improvement in Revenue and Earnings with start-up costs and inventory issues in the rear view mirror.
Q over Q comparisons and Y over Y comparisons should begin to catch that market's attention going forward.
I was also intrigued by the comments ...
As C21 operates in the cannabis industry, the Company is subject to the limitations of Internal Revenue Code ("IRC") Section 280E for US income tax purposes. Under 280E, the Company is only allowed to deduct expenses for tax purposes directly related to costs of goods sold. Given the recent announcement by the D.E.A. to reclassify cannabis as a Schedule III drug, C21 anticipates the elimination of the future applicability of IRC Section 280E on its business upon final rule. Many U.S. cannabis operators are currently challenging the historic applicability of 280E on state-legal operations. C21 is reviewing its tax stance regarding these matters."
The possibility exists, not only for a prospective rule change that would save the company millions in taxes going forward, but perhaps a retroactive adjustment... which would likely surprise the market in a very good way.
Still holding this, one of the very few profitable cannabis stories out there as we await favourable developments in US legislation, that inevitably will come about some day. Perhaps post election with a blowout by one side and a non gridlocked houses
MM