MONTREAL, Feb. 24, 2026 /CNW/ – Mercanto Holdings Inc. (TSXV:MUSH) (the “Company” or “Mercanto”) is providing a forward-looking operational update in advance of the formal release of its Q2 2026 financial results. This update is intended to provide shareholders with early context regarding anticipated Q2 2026 performance across Mercanto’s full product portfolio, as well as the operational dynamics that have influenced quarter-over-quarter results.
Q2 2026 Context and Portfolio Dynamics
As previously disclosed, the Quebec vape cartridge category launched late in the second quarter of fiscal 2026, with Mercanto introducing three vape cartridge SKUs alongside an approved battery. While Mercanto’s guidance relates to performance across its entire product portfolio, the introduction of vape cartridges and its battery has been the primary driver of the Company’s transformational quarter-over-quarter sales growth. The Company’s products were made available approximately one month into the quarter, leaving only approximately two months of vape cartridge and battery sales to be captured within the reporting period. This limited launch window coincided with the December holiday season and the initial rollout of an entirely new provincial product category, further contributing to variability in early sales patterns.
Given the novelty of the category, the staggered timing of the launch within the quarter and heightened holiday demand, initial sales activity was volatile and may not have been representative of normalized demand. Early purchasing patterns across the category have reflected uneven replenishment cycles, rapid sell-through in certain locations, and temporary stock-out weeks affecting both cartridges and batteries. These dynamics were not unique to Mercanto and were observed across multiple licensed producers participating in the initial rollout. As replenishment cycles have begun to stabilize, management is …