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Quebec market in a little lull, says Mercanto CEO

Published on April 4, 2025 by Pat Bulmer

Photo: Adobe Stock/the oz.

The market has turned a little soft, but the CEO of Quebec cannabis company Mercanto is confident that’s a blip.

“While our Q2 results reflect ongoing industry challenges and temporary softness in our core Quebec market, we remain confident in our long-term strategy,” said Eric Ronsse of Mercanto Holdings as the company released financial results for the quarter ending Jan. 31.

Mercanto recently changed its name from The Good Shroom Co.

The results showed revenue at $1 million, down from $1.13 million in the same quarter a year ago. Net revenue (after excise taxes) was $0.84 million compared to $0.93.

The company reported a net loss of $109,000, compared to a net profit of $56,000 a year ago, but it is debt free.

“Our financial discipline is a constant — reflected in our lean structure and efficient operations. Mercanto continues to operate with focus and the cash flow stability required to carry forward without interruption,” said Ronsse in the financial statement.

He had lots more to say:

— “In the context of rising global trade tensions, including the current trade dispute with the United States, many industries are facing significant uncertainty and risk related to cross-border tariffs. The Canadian cannabis industry, however, remains largely insulated from these pressures due to its strictly domestic supply chains. Additionally, in periods of economic slowdown, cannabis — like alcohol — tends to be a resilient category.”

— “Mercanto’s core market, Quebec — which has historically represented over 93% of revenue — is undergoing a product rationalization process initiated by the province’s cannabis board. This has temporarily impacted sales volumes and contributed to the decline seen in Q2.”

— “Despite recent stagnation in Quebec, it’s a market that has historically been very strong for us, and we remain optimistic about renewed growth once the rationalization process concludes … While several high-performing SKUs (labels) were removed entirely as part of this process — leading to a measurable hit to revenue in past quarters — sales have since stabilized. To mitigate this impact and support future growth, our innovation-driven national expansion strategy is well underway.”

Mercanto is rolling out THC pouches, and will launch four new products in May and is eagerly awaiting the opening up of vaping in Quebec in the fall.

“The vape category, previously restricted in Quebec, is expected to open in Fall 2025,” the financial statement said. “Given Mercanto’s strong standing as a reliable and well-regarded supplier within the provincial system, the Company expects to secure a listing — or multiple — in this high-growth category.”

“The Canadian cannabis sector is undergoing a reset, and while many companies are struggling — with CCAA filings increasingly common — we believe the bottom is near. Our disciplined approach has allowed us to weather the storm and emerge more resilient,” Mercanto said.