08:08 AM EDT, 08/16/2024 (MT Newswires) -- C21 Investments ( CXXIF ) , a vertically integrated cannabis company, on Friday reported a net loss in its first quarter ended June 30 on lower margins, increased non-cash share-based compensation, and non-capitalized start-up costs for a new dispensary.

The company recently changed its fiscal reporting period and does not have traditional sequential or year-over-year comparable reporting periods.

In the first quarter, C21 lost US$1.4 million, or $0.01 per share. Revenue was US$6.6 million. The company generated US$300,000 in adjusted EBITDA in the quarter.

C21 closed $4 million convertible debenture financing, principal funding for the acquisition of the new dispensary back in May.

"Our Gross Margin in the quarter was impacted by a variety of factors, including one-time internal inventory issues as we prepared for the launch of our new dispensary," said CEO and President Sonny Newman. "We anticipate improved margins in the second half of the year."

The company's shares shed 5.6% on Thursday to close at $0.34.