Canadabis Capital Posts Q1 Losses Amid Revenue Contraction

Canadabis Capital Inc. (CANB.V) disclosed its first quarter financial results, revealing a net loss of C$128,539 or break-even per share, marking a reversal from the prior-year period which had generated net income of C$321,569. The reversal reflects broader operational pressures, with quarterly net revenues declining to C$3.26 million from C$5.09 million year-over-year—a notable contraction that signals intensifying market headwinds.

On a more constructive note, the company secured approval from the TSX Venture Exchange to address an upcoming interest obligation through an alternative financing mechanism. Rather than deploying cash reserves, Canadabis Capital will satisfy the interest payment on its outstanding convertible debentures by issuing common shares. This equity-based settlement aligns with the underlying debenture terms and TSX Venture Exchange policies.

The execution is set for December 31, 2025, when 2.77 million common shares will be issued to settle the Q1 interest obligation. These newly issued shares will carry a standard four-month and one-day hold period from issuance, a typical restriction imposed under Exchange guidelines that temporarily restricts shareholder liquidity but is a common feature in debt-to-equity conversions of this nature.

For investors tracking the company’s Q1 trajectory, the results underscore mounting revenue pressures even as management pursues debt optimization strategies to preserve cash flow.