C21 Investments Reports Fourth Quarter and Fiscal Year End Financial Results

*VANCOUVER, BC –* C21 Investments Inc., a vertically integrated cannabis
company, filed its audited financial statements and management discussion
and analysis for its fourth quarter and fiscal year ending March 31, 2025,
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 recently changed its fiscal
reporting period to a March 31st year-end. With this change, the
comparative period in the audited financial statements will not reflect the
same calendar months.

Fourth Quarter Highlights (January 1, 2025 to March 31, 2025)

Revenue of $8.1 million – up 3% from Q3 – driven by same store sales growth
across all dispensaries; State of Nevada sales were down 6.5% from the
sequential comparative period; Compared to the previously reported Q4
(ended Jan. 31, 2024), revenue grew by 24%

Gross Margin of 45% – relatively flat from Q3

Income from Operations of $0.8 million – down $0.1 million from Q3 due to
one-time SG&A costs

Earnings (Loss) Per Share of ($0.01) – down from Q3’s ($0.00), primarily
due to income tax adjustments; Net Income Before Tax of $0.7 million

Adjusted EBITDA of $1.7 million – up 8% quarter-over-quarter and up 60%
over the previous Q4

Free Cash Flow before working capital changes and taxes of $1.6 million –
flat from Q3

Purchased and cancelled over 2 million shares (see news release dated
February 19, 2025)

Fiscal Year Highlights (April 1, 2024 to March 31, 2025)

Revenue of $30.1 million – up 6.5% over the previously reported fiscal year
(ended January 31, 2024)

Gross Margin of 42% – up 230 basis points from the previous year despite
one-time costs in Q1 associated with opening the South Reno store

Income from Operations of $1.3 million, driven by an 11% operating margin
in the second half of the fiscal year, partially offset by one-time costs
in Q1

Earnings (Loss) Per Share of ($0.03), primarily driven by income taxes and
one-time costs opening the South Reno dispensary; Net Income Before Tax of
$0.4 million

Adjusted EBITDA of $4.9 million – up 7% over the prior fiscal year

Free Cash Flow before working capital changes and taxes of $4.0 million –
up 41% from the prior fiscal year

Customer Transactions increased 38% over the fiscal year, from 126,449 in
Q1 to 174,611 in Q4

Q4 and Fiscal Year End Management and Operational Commentary

CEO and President, Sonny Newman: “I’m excited to share our strong results
this quarter, a typically slow period for the industry, which showcases the
hard work we’ve put into driving continued organic, same-store sales
growth. We have seen fourth quarter sales surge by 24% over the previous
Q4, fueled by a 38% increase in customer transactions over the year.
Despite the 6.5% sequential decline in Nevada state sales, our Q4 revenue
grew 3% quarter-over-quarter. Our South Reno store has now delivered over
100% same-store sales growth from its first full operational month in July
2024 to March 2025. Despite industry-wide price compression, we have
witnessed a 26% retail sales increase from Q1 to Q4, which has
significantly improved margins. The Company’s disciplined approach to
growth has allowed us to achieve another year of sustained free cash flow.
Our consistently strong results are a testament to C21’s unique model and
incredible team. We remain committed to actively pursuing additional
accretive opportunities while maintaining our relentless focus on driving
shareholder value.”

Given the previously reported change in fiscal year end from January 31 to
March 31, it is important to note that there is no equivalent time period
to this Q4 report in the Company’s historical results.

Q4 revenue of $8.1 million was up 3% from Q3, despite the 6.5% decline in
Nevada sales over the comparative period. The increase in retail sales was
driven by same store sales growth in each of Silver State’s three
dispensaries. The South Reno dispensary continues ramping its sales with
exceptional performance, with monthly sales of $580,000 in March, up from
$273,000 in July, achieving over 100% same store sales growth since its
first operational month. For the fiscal year, Revenue was $30.1 million,
with 26% retail sales growth reported from Q1 to Q4.

Gross Margin of 45% in the fourth quarter was relatively flat from Q3. For
the year, Gross Margin was 42% and improved 230 basis points from the
previous fiscal year (ended January 31, 2024). The improvement was driven
by increased retail revenues, and greater operational synergies and cost
efficiencies associated with integrating the new dispensary, partially
offset by one-time costs in Q1 associated with opening the South Reno store.

C21 reported Income from Operations of $0.8 million in the fourth quarter.
This continued strong operating margin was driven by the increase in retail
sales while slightly offset by one-time costs in the period related to the
refiling of income taxes for the previous three years. For the year, Income
from Operations was $1.3 million, driven by an 11% operating margin in the
second half of the year, and partially offset by one-time costs in Q1
associated with the new dispensary.

The Company reported a Net Loss of $1.6 million in the fourth quarter, or
($0.01) per share. Q4’s Net Loss was primarily due to increased Income Tax
provisions. The Company generated $0.7 million Net Income Before Tax for
Q4. For the year, Net Loss was $4.0 million or ($0.03) per share, impacted
by $4.2 million in Income Tax and further by one-time costs in Q1
associated with opening the new dispensary in South Reno. Net Income Before
Tax for the year was $0.4 million.

Q4 Adjusted EBITDA was $1.7 million, up 8% from Q3. The increase in
Adjusted EBITDA was driven by the improved retail sales for the quarter.
For the year, Adjusted EBITDA was $4.9 million, up 7% from the previous
fiscal year (ended January 31, 2024).

Q4 Free Cash Flow before working capital changes was $1.6 million, flat
from Q3. For the year, Free Cash Flow before working capital changes was
$4.0 million, up 41% over the previous fiscal year (ended January 31, 2024).

Cash at the end of Q4 was up $0.1 million from Q3 notwithstanding $0.8
million in Income Tax paid, a $0.3 million debenture principal repayment,
and $0.3 million in share repurchases in the quarter. Total Liabilities
increased due to the addition of Uncertain Tax Provisions. For the year,
Income Tax paid in cash was $1.5 million.

In the fourth quarter, the Company announced the repurchase and
cancellation of 2.05 million shares, at an average price of $0.125 per
share (see news release dated February 19, 2025). As of June 23, 2025, the
Company has 117,862,314 shares outstanding.

Based on legal interpretations and opinions that challenge its tax
liability under Section 280E Internal Revenue Code of 1986, the Company has
taken the position that it does not owe taxes attributable to the
application of this Section of the Code. The Company plans on refiling
amended U.S. federal income tax returns for the years ended January 31,
2022, January 31, 2023, January 31, 2024, and the two months ended March
31, 2024. Management exercises significant judgment when assessing the
probability of successfully sustaining the Company’s tax filing positions,
and in determining whether a contingent tax liability should be recorded
and, if so, estimating the amount.
About C21 Investments Inc.

C21 Investments Inc. is a vertically integrated cannabis company that
cultivates, processes, and distributes quality cannabis and hemp-derived
consumer products in the United States. The Company is focused on value
creation through the disciplined acquisition and integration of core
retail, manufacturing, and distribution assets in strategic markets,
leveraging industry-leading retail revenues with high-growth potential
multi-market branded consumer packaged goods. The Company owns Silver State
Relief and Silver State Cultivation in Nevada, including legacy Oregon
brands Phantom Farms, Hood Oil and Eco Firma Farms. These brands produce
and distribute a broad range of THC and CBD products from cannabis flowers,
pre-rolls, cannabis oil, vaporizer cartridges and edibles.