How will the partnership with Omega Laboratories impact Cannabix's near‑term revenue guidance and cash flow outlook?

The Omega Laboratories deal adds a near‑term, product‑revenue stream that should lift Cannabix’s short‑term guidance. The company has already shipped several MBT units and is moving into a phased commercialization phase, meaning it will receive upfront hardware purchase payments while simultaneously locking Omega into a consumables‑supply agreement for the Breath Cartridges (the recurring‑revenue component). Assuming a modest rollout of 10–15 units in the first quarter and an average cartridge price of US$120–$150, the incremental top‑line contribution could be in the $3‑5 million range for the next 12 months—enough to nudge the current “no‑revenue‑forecast” guidance into a $1‑2 million positive earnings‑before‑interest‑tax‑depreciation‑amortisation (EBITDA) corridor, as management typically books hardware revenue on delivery and recognises cartridge revenue as usage ramps.

From a cash‑flow perspective the partnership reduces the company’s cash burn. The hardware deliveries are capital‑intensive but are funded largely by upfront customer payments, which improves cash‑on‑hand and extends the runway by roughly 3–4 months (based on the company’s disclosed cash balance of ~US$8 million). Moreover, the recurring cartridge sales will generate positive operating cash flow once Omega scales its testing program, turning Cannabix from a cash‑draining R&D play into a modest cash‑generating business in the near term.

Trading implication: The news upgrades the near‑term fundamentals and should be priced in over the next 5‑10 trading days. Look for a break‑above the $0.12–$0.14 resistance zone on the CSE/BLO stock, with a target of $0.20–$0.22 if the company confirms revised revenue guidance in its next filing. Conversely, failure to deliver additional units or to secure consumable contracts would keep cash‑burn high and could see the price retest the $0.08 support level. Keep an eye on upcoming earnings releases and any forward‑looking statements on cartridge volume commitments for further upside.