Latest news with #Mercanto
Cision Canada
07-07-2025
- Business
- Cision Canada
Mercanto Secures Key Listings in Quebec's New Vape Category
MONTREAL, July 7, 2025 /CNW/ - Mercanto Holdings Inc. (TSX-V: MUSH) ("Mercanto" or the "Company") is pleased to announce that it has received preliminary acceptance from the Quebec cannabis authority for three vape cartridge products under its Velada and Nordique Royale brands. This marks a significant milestone as Quebec prepares to launch its vape category — the last major provincial market in Canada to do so. Positioned at the Forefront of Canada's Last Cannabis Gold Rush Mercanto's approved products include: Cherry Blossom: A high-CBD and moderate-THC vape cartridge available in all retail stores across Quebec. Afghan Gold: A potent formulation featuring high THC and moderate CBD mirroring the Company's popular hash and hash-infused pre-roll. This SKU will also be available in all stores. Peach Sumo: A high-CBD vape offered online through the Quebec cannabis authority's e-commerce platform. With only 25 vape cartridges approved for retail stores province-wide at launch, Mercanto will hold 8% of the physical shelf space, and with 30 SKUs approved for online sales, it will command 10% of that segment. While this does not necessarily equate to 8-10% of sales, as product velocity will ultimately determine market share, it is a strong starting point that underscores the trust Mercanto has built as a supplier in Quebec over the past three years. "This is an important stepping stone for Mercanto and the culmination of our experience in Quebec," said Eric Ronsse, CEO. "Vape cartridges represent the last true gold rush in Canadian cannabis. With no entrenched incumbents in Quebec, we are as well positioned as any competitor, starting on equal footing in a market with enormous potential." Preliminary Acceptance & Next Steps While this acceptance is preliminary and conditional upon final reviews of packaging and the cartridges themselves by the Quebec cannabis authority, Mercanto does not anticipate any hurdles that would prevent these products from proceeding to full launch. Market Opportunity & Timing The Quebec cannabis authority projects that vape products will account for 11% of total cannabis sales within the first year of launch, approximately $68 million annually, with roughly 50% of this volume expected to be incremental to the market. In comparison, vape cartridges comprise about 15% of total sales in Alberta, Ontario, and British Columbia. Mercanto's vape cartridges are expected to launch across all 105 retail stores and online in November 2025 (Q2 fiscal 2026), alongside the two authorized batteries for the category, one of which the Company will supply. This synchronized rollout means Mercanto enters Quebec's vape segment with a holistic strategy: providing not only cartridges but also the essential hardware to support the entire category. "For the first time, we're entering a new category where no player holds an advantage. This levels the field and lets quality and execution speak. While our products won't be the cheapest on the shelf, and we expect to be mid-tier in pricing, they are crafted with a focus on quality, balanced formulations, and consumer experience. We're confident that's where the long-term value lies," added Ronsse. Elimination of Nursery Program Supports Scale In addition, the Quebec cannabis authority will eliminate its nursery program this October. Previously, new products were tested in roughly 25% of stores for six months before either expanding to full distribution or being delisted. Going forward, approved SKUs will be placed directly into all stores, which benefits established, trusted suppliers like Mercanto. One factor that remains unknown, however, is how frequently products will be reviewed for potential delisting and how long they will typically remain on shelves before such reviews occur. The Company currently has four products in the nursery phase and expects clarity on their status in the coming months. Outlook Mercanto believes this launch marks the beginning of a new growth chapter. With a resilient, cash-focused model and a reputation built over years of consistent supply to the Quebec cannabis authority, the Company sees the vape rollout as a catalyst that could materially impact future revenues. For More Information: Eric Ronsse President & CEO, Mercanto Holdings Inc. Forward-Looking Information Disclaimer: This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "expect," "plan," "intend," "estimate," "may," "will," "should," "potential," "proposed," or similar expressions. Forward-looking statements in this document include, but are not limited to, statements regarding Mercanto Holdings Inc.'s future business plans, operations, growth potential, market conditions, product launches, and financial outlook. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Cision Canada
27-06-2025
- Business
- Cision Canada
Mercanto Reports Q3 2025 Financial Results and Provides Operational Update
MONTREAL, June 27, 2025 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company"), released its financial results for the third quarter ended April 30, 2025. The Company also provided an operational update and reiterated its strategy amid an evolving cannabis market in Quebec and across Canada. Financial Highlights for Q3 2025 (vs. Q3 2024): The Company notes that while topline revenue declined compared to the same period last year, results reflect the impact of the recently completed rationalization process in Quebec and broader industry headwinds. While the rationalization is now concluded, its effects are expected to persist through Q4. Nonetheless, this positions the Company for medium- to long-term benefit as Quebec's cannabis market stabilizes and new categories such as vapes begin to roll out. Notably, Mercanto maintained an adequate working capital position and zero long-term debt. "We are operating in one of the toughest markets, and while results reflect a contraction, we believe our business is resilient and structurally sound," said Eric Ronsse, CEO of Mercanto. "Q3 was a transition quarter as we took most of the impact of rationalization in Quebec, focused on margin-improving products, and on the development of other markets, notably with the launch of three flavours of Deckies THC pouches in New Brunswick. Our strategy remains clear: optimize the mix, minimize waste, and maintain a lean, focused operation. We are building a durable business, not chasing inflated growth." Vape Category Entry & Battery Listing Following the second quarter-end, Mercanto announced it had secured one of only two authorized battery listings for Quebec's new vape category, a strategic win that may help offset short-term softness in financial results and contribute to the Company's post-rationalization recovery, set to launch in Fall 2025. The Company's approved device, the M3B+ from global manufacturer CCELL, will be distributed in all 104 cannabis stores across Quebec. The Quebec cannabis authority has projected that vape products will represent 11% of total provincial cannabis sales within the first year of launch, with approximately 50% of that volume being incremental to the market. In FY2024, Quebec cannabis sales totaled $620 million, indicating a projected vape market of $68 million. Mercanto's battery will be one of only two available to power 25 vape cartridge SKUs. "With the upcoming launch of vapes in Quebec, we are uniquely positioned to benefit from a tightly controlled product rollout where shelf space is limited and quality matters," said Ronsse. "We expect our hardware distribution to be financially positive" The Company has participated in the vape cartridge submission process, with results expected to be announced in the coming weeks. Outlook The Company acknowledges that the cannabis sector remains volatile and more unstable than ever; however, Mercanto's business model has proven resilient, and its future prospects appear increasingly strong. Mercanto's lean structure, cash-focused operations, and diversification into growth segments position it well for long-term value creation. The Company anticipates gradual sales growth as the Quebec rationalization process has now concluded, with its effects expected to last through Q4, positioning the Company to benefit from a more streamlined market environment in the medium to long term. Forward-Looking Information Disclaimer: This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "expect," "plan," "intend," "estimate," "may," "will," "should," "potential," "proposed," or similar expressions. Forward-looking statements in this document include, but are not limited to, statements regarding Mercanto Holdings Inc.'s future business plans, operations, growth potential, market conditions, product launches, and financial outlook. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. SOURCE Mercanto Holdings Inc.
