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Quebec’s a tough cannabis market to crack

Published on July 11, 2025 by Pat Bulmer

Photo: Adobe Stock/the oz.

Cannabis companies in Quebec may be about to see some relief.

Mercanto Holdings (formerly The Good Shroom Co.) said its latest financial results “reflect the impact of the recently completed rationalization process in Quebec and broader industry headwinds.”

In the quarter ending April 30, Montreal-based Mercanto recorded revenues of $887,862, down from $1.14 million in the same quarter a year ago.

The company’s net loss was $88,367, compared to a profit of $30,840 a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $41,018, compared to $45,938 to the good a year ago.

While Quebec’s product rationalization is now over, “its effects are expected to persist,” the financial statement said.

Quebec has legalized vaping and Mercanto is poised to benefit.

“Following the second quarter-end, Mercanto announced it had secured one of only two authorized battery listings for Quebec’s new vape category … 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 statement said.

“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 Eric Ronsse, company CEO. “We expect our hardware distribution to be financially positive.”

The company is predicting gradual sales increases now that the rationalization process has been completed.

“We are operating in one of the toughest markets, and while results reflect a contraction, we believe our business is resilient and structurally sound,” Ronsse concluded.