Canadabis Capital Swings To Loss In First Quarter Results

Canadabis Capital Inc. (CANB.V) reported an operational setback in Q1, posting a net loss of C$128,539 compared to net income of C$321,569 in the same period last year. This marks a significant reversal for the company, with earnings per share breaking even both periods.

The financial pressure becomes more evident when examining revenue trends. Q1 net revenues declined to C$3.26 million, representing a notable contraction from the C$5.09 million generated in the prior year period. The 36% year-over-year revenue drop underscores challenging market conditions or operational headwinds during the first quarter.

On a strategic front, the company has secured approval from the TSX Venture Exchange for an alternative approach to managing its debt obligations. Rather than settling upcoming interest payments on its outstanding convertible debentures through cash disbursements, Canadabis Capital received the green light to issue common shares as an alternative settlement method. This mechanism aligns with the terms specified in the debenture indenture and complies with applicable Exchange regulations.

The company plans to issue 2.77 million common shares on December 31, 2025, to satisfy the interest payment obligation. These newly issued shares will be subject to a standard four-month and one-day hold period from their issuance date, restricting immediate trading and providing some stability to share circulation.

For investors tracking Canadabis Capital’s performance, this Q1 report reflects both operational challenges through declining revenues and management’s proactive approach to debt servicing through equity issuance rather than cash reserves.