Columbia Care Announces Second Tranche of Debt Financing, Raising Over US$54.0 Million in Aggregate
- Incremental US$15.7 Million in Senior Secured Convertible Notes and Additional US$4.0 Million in Senior Secured Term Debt Will Exceed US$50.0 Million Target When Combined with First $34.4 Million Tranche
- Additional Capital Enhances Company’s Cash Position and Bolsters Financial Flexibility in Advance of Expected Transition to Positive Adjusted EBITDA in 2H 2020
NEW YORK, June 19, 2020–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today announced the expected completion of the second tranche of its previously announced US$50.0 million financing with the offering of an aggregate principal amount of US$15.7 million in 5.00% senior secured convertible notes due 2023 (the “Convertible Notes”). US$12.8 million of escrowed funds are expected to close on or by June 22, 2020 with the remaining binding commitments closing in early July. The Convertible Notes can be exchanged into common shares of the Company at a previously negotiated price of C$3.79, representing a 20% premium to the closing volume weighted average price as of June 1, 2020. The Company also announced binding commitments of an additional US$4.0 million in term debt, supplementing its initial US$34.4 million tranche which closed on May 14, 2020.
Upon the closing of the additional $19.7 million, the aggregate financed amount of US$54.1 million will exceed Columbia Care’s previously announced target of US$50 million. This amount excludes proceeds from the Company’s anticipated second and third sale leaseback transactions, expected to close in the third quarter. Also excluded is the Company’s previously announced sale of a 10% minority interest in its non-US business to Avalon Pharmaceuticals for US$11 million which closed earlier this year and is funding in tranches through the end of the third quarter.
Columbia Care continues to demonstrate its ability to access the institutional capital markets at attractive terms despite incredibly challenging macroeconomic conditions, validating the confidence that institutional investors have in our company and team. Since the start of 2020, including these financings, Columbia Care has raised over US$65 million of new capital, minimizing dilution, enhancing our liquidity position, de-risking our outlook and enabling us to execute on our growth strategy.
Nicholas Vita, CEO of Columbia Care
We will continue to allocate resources to our highest performing markets where opportunities exist to drive incremental profitability and improve our position as the leading nationwide operator. Columbia Care is committed to being a disciplined steward of capital and remains focused on creating shareholder value as we transition to adjusted EBITDA positive in 2020.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
About Columbia Care Inc.
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult use cannabis products and related services with licenses in 18 US jurisdictions1 and the EU. Columbia Care has completed more than 1.8 million sales transactions since inception and working in collaboration with renowned and innovative teaching hospitals and medical centers globally, continues to be a patient-centered health and wellness company setting the standard for compassion, professionalism, quality, care and innovation in the rapidly expanding cannabis industry. For more information on Columbia Care, please visit www.col-care.com.
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