C21 Investments Inc. (CXXIF) has announced a renewed normal course issuer bid (NCIB) that will allow the company to repurchase up to 5,898,596 common shares—roughly 5 % of its issued and outstanding shares—over a 12‑month period ending December 9 2026. The program will be funded from cash on hand and will be executed on the open market through the Canadian Securities Exchange or alternative trading systems, with each share cancelled upon purchase. The NCIB permits C21 to buy shares at a rate of up to 2 % of outstanding shares over any 30‑trading‑day period, giving management flexibility to adjust the pace of buybacks in response to market conditions.
C21’s decision to launch a new share‑repurchase program comes after a mixed financial performance in the most recent quarter. In Q2 2025, the company reported revenue of $8.5 million, up 13 % year‑over‑year, and a gross margin of 50.4 %, a 690‑basis‑point improvement driven by higher sales in its retail and wholesale cannabis segments. However, the company posted a net loss of $0.5 million and adjusted EBITDA of $2.2 million, up 71 % YoY, reflecting ongoing investment in growth initiatives and the impact of a higher cost of goods sold. The cash‑flow position remained healthy, with free cash flow of $1.9 million, an 88 % increase from the prior year, giving C21 the liquidity to fund the buyback.
Management cited the company’s belief that its shares are undervalued as the primary rationale for the NCIB. CEO Sonny Newman stated that the repurchase program would be accretive to shareholders and would signal confidence in the company’s long‑term prospects. The program follows a prior NCIB that ran from December 2 2024 to December 2 2025, during which only 224,000 shares were repurchased at an average price of about C$0.20 per share—an execution rate that was modest compared to the program’s capacity. The new bid therefore represents a more aggressive approach to returning capital to shareholders, leveraging the company’s improved cash position and the expectation of a more favorable share price in the near term.
The share‑repurchase initiative is expected to reduce the number of outstanding shares, potentially boosting earnings per share and improving return on equity. By buying back shares at a rate of up to 2 % of outstanding shares over any 30‑day period, C21 can take advantage of market volatility and price dips, while maintaining flexibility to scale the program if the share price moves favorably. The program also aligns with the company’s broader strategy of disciplined capital allocation, as evidenced by its recent private repurchase of 2,051,000 shares in February 2025, which was also aimed at supporting shareholder value.
The announcement underscores C21’s confidence in its financial health and its view that the market has not fully priced in the company’s growth prospects. While the company continues to invest in its vertically integrated cannabis operations across Nevada and Oregon, the renewed NCIB signals that management believes the current share price does not reflect the intrinsic value of the business, and that returning capital to shareholders is a prudent use of excess cash.
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