Fiore Cannabis Ltd.

Management reported a profitable Q3 and said revenue was about $2.7 million in Q3. They also said revenues increased 53% year over year, gross margin was up 68% year over year, and SG&A/expenses were down around 60%. For 2021, they said revenue should be around $3.3 million versus about $1.6 million in 2020, and they described 2022 as a year in which revenues could double again, potentially to about $5 million in Fiore sales based on internal harvest assumptions. No formal next-quarter or full-year guidance was issued; management repeatedly said these were not official forecasts.

Erik Anderson framed the quarter as proof that the turnaround is working: non-core assets have been sold, debt has been reduced, and the company is now showing profitable operations. He emphasized that Fiore is focused on controllable fundamentals rather than the stock price, while also arguing that federal cannabis reform would be a major catalyst. His tone was upbeat and confident, with repeated references to strong tourism recovery in Las Vegas and Palm Springs, strong demand for organic flower, and an exit strategy built around becoming attractive to a larger U.S. operator.

The CFO was not separately present in the prepared remarks; Anderson handled the financial discussion. He said the company reduced debt through asset sales, including the sale of Canadian assets and a California parcel, and noted the balance sheet is cleaner than before. He also said a short-form prospectus shelf is in place, but management may prefer debt instruments next because the business owns land, buildings, and equipment at Apex. On profitability, he pointed to positive adjusted EBITDA in Q1 and positive net profit in Q3, while saying cash flow can be affected by M&A, legal fees, and 280E tax issues.

Questions focused on how Fiore can perform if U.S. federal legalization takes time, what catalysts could arrive in the next 3 to 6 months, whether Diamante Labs adds a new revenue stream, and whether the company plans to raise more capital. Management said it is building a fundamentally sound business regardless of legalization, but sees SAFE Banking, the MORE Act, or broader decriminalization as a huge upside catalyst. On capital, Anderson said more funding will likely be needed for expansion, but he prefers debt instruments or non-dilutive structures if possible. He also said Diamante Labs is already selling concentrates using both Fiore biomass and third-party biomass, though the company is still waiting for more quarters of data to size the opportunity.