Reports a 5th Consecutive Year of Positive Free Cash Flow VANCOUVER, BC, July 22, 2024 /CNW/ - C21 Investments Inc. (CSE:CXXI) (OTCQX: CXXIF) ("C21" or the "Company"), a vertically integrated cannabis company, today announced the filing of its audited financial statements and management discussion and analysis for its fiscal year ended January 31, 2024 on SEDAR. The Company's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). All currency is reported in U.S. dollars. The Company previously disclosed its unaudited financial results for the year ended January 31, 2024 in its May 7, 2024 news release (the "Prior News Release"). Audited Fiscal Year Financial Highlights (February 1, 2023 to January 31, 2024): Revenue of $28.3 million, down 2% from last year – state of Nevada sales down 6% over the same period1 Gross Margin of 39.4%, down from 46.4% the previous year driven primarily by one-time items discussed in the Prior News Release and in the MD&A Adjusted EBITDA2 of $4.5 million Cash Flow from Operations of $3.3 million; Free Cash Flow2 of $2.7 million inclusive of $1.3 million taxes paid in the year ______________________________1 State of Nevada cannabis sales: https://www.headset.io/markets/nevada 2 "Free Cash Flow", "Adjusted EBITDA" and "same store sales" are non-GAAP financial measures. See "Non-GAAP Financial Measures" below for a discussion of such non-GAAP financial measures and a reconciliation to the closest comparable GAAP financial measures. Changes to the Unaudited Year End Financial Results previously released on May 7, 2024: There have been no material changes to Operational Results Reported, including no changes to Revenue, Gross Profit, or Cash Flow from Operations in the audited financial results as compared to the unaudited financial results disclosed in the Prior News Release. There are no material changes from the unaudited financial results disclosed in the Prior News Release other than a write-down to an Oregon real estate property and Lease liabilities. After the release of the preliminary results, the Company received an updated appraisal for one of its remaining real properties in Oregon. The value of this property has been written down to appraised value. In addition, two of the Company's leases were extended by four years, resulting in a change to the calculations of these Right-of-use assets and the corresponding Lease liabilities. Changes to the Prior News Release's Income Statement and Balance Sheet for the current and the comparative previous period are listed below as well as underlined in the summary tables provided. The British Columbia Securities Commission ("BCSC") issued a management cease trade order (the "MCTO") on May 31, 2024 in connection with the delay in the Company filing its audited consolidated financial statements for the year ended January 31, 2024, annual management's discussion and analysis for the same period and management certifications of annual filings (collectively, the "Annual Filings"). The MCTO prohibited the Company's management from trading in the securities of the Company for the duration of the MCTO. The Company anticipates that the filing of its audited consolidated financial statements for the 2-month stub period ended March 31, 2024, its annual management's discussion and analysis for the same period and management certifications of annual filings (collectively, the "March 31, 2024 Filings") may be delayed past the filing due date of July 29, 2024. As a result, the MCTO is expected to remain in place until the March 31, 2024 Filings have been completed. "We are pleased to announce the release of our audited year-end financial statements. The Company engaged new auditors this year and have changed our fiscal reporting period to better align with the reporting schedule of our peers (see news release dated May 31, 2024). We appreciate the patience of our shareholders during this delay. We anticipate reporting and completing the March 31, 2024 filings in the next two weeks" stated CEO and President, Sonny Newman. Non-GAAP Measures: C21 reports its financial results in accordance with GAAP and uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures and ratios are not calculated in accordance with GAAP. The Company refers to certain Non-GAAP financial measures such as "Free Cash Flow", "Adjusted EBITDA" and "same store sales". These measures do not have any standardized meanings prescribed by GAAP and may not be comparable to similar measures presented by other issuers. The Company considers these measures to be an important indicator of the financial strength and performance of its business. The Company believes the adjusted results presented provide relevant and useful information for investors because they clarify the Company's actual operating performance, make it easier to compare the Company's results with those of other companies and allow investors to review performance in the same way as the management of the Company. Since these measures are not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, the Company's reported results as indicators of the Company's performance, and they may not be comparable to similarly named measures from other companies. The tables below provide reconciliations of Non-GAAP financial measures to the most directly comparable GAAP measures. "Free Cash Flow" is defined as Cash Provided by Operating Activities from Continuing Operations in a period minus capital expenses of property and equipment. Management believes that Free Cash Flow, which measures the Company's ability to generate additional cash from our continuing business operations, is an important financial measure for use in evaluating the Company's financial performance. Free Cash Flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of the Company's performance and net cash provided by operating activities as a measure of liquidity. Free Cash Flow: Quarter Ended January 31, 2024 October 31, 2023 July 31, 2023 April 30, 2023 January 31, 2023 Cash Provided by Operating Activities from Continuing Operations $  506,477 $  (110,329) $  1,649,786 $  1,204,347 $  1,215,735 Purchase of Property and Equipment (7,240) (259,343) (202,182) (41,803) (9,071) Free Cash Flow 499,237 (369,372)