Columbia Care Q1 Revenue Doubles to $26 Million

Columbia Care Reports First Quarter 2020 Results
  • First Quarter Combined Revenue up 125% YoY to $28.9 Million, Sequential Increase of 18% and Sequential Gross Margin Improvement of 7%
  • Consumer Demand Through April Remains Strong Amid COVID-19

NEW YORK-May 14-(BUSINESS WIRE)–Columbia Care, Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) today reported financial and operating results for the first quarter ended March 31, 2020. All financial information is unaudited and provided in US dollars unless otherwise indicated.

Recent Financial & Operational Updates

In light of the COVID-19 pandemic’s impact on the overall economic environment, the Company is providing updates for both the first quarter and subsequent events. Highlights include:

  • Secured over $45 million in capital commitments through a series of transactions, including:
    • $34.3 million in binding, executed senior secured first-lien term debt commitments (closing today), a portion of which funded in the first quarter – the first tranche of an expected $50 million debt offering (additional details below).
    • $11 million from the sale of a 10% minority interest in the Company’s non-US business, Columbia Care International, to Avalon Pharma, one of the largest pharmaceutical manufacturers in the MENA region.
  • Operating cost reductions implemented over the last several months, including suspension of operations in Puerto Rico in Q2 2020 due to regional instability, regulatory ambiguity and a limited view on near-term profitability. Total cost reductions over the last several months are expected to save approximately 10%, or $7.5M, in cash operating expenses annually.
  • Ohio: Completed first phase of construction on 56,000 ft² cultivation facility in Mt. Orab, resulting in eight harvests since March to supply biomass for processing and wholesale flower for retail outlets. Corsa Verde manufacturing facility began commercialization buildout phase in May to expand processing capabilities and increase product offerings to retail customers.
  • Pennsylvania: Strong momentum in all three locations despite new competition in Scranton and Allentown; supply chain improvements are lifting gross margins.
  • Florida: Product supply challenges that impacted Q1 are expected to resolve in June and July as significant new canopy square footage and 40 new product (regulator pending) SKUs are commercialized.
  • Massachusetts: Medical sales are up 40% partially offsetting the impact of the state’s temporary suspension of all adult use cannabis sales on March 24 due to COVID-19. Inventory build process has continued to prepare for resumption of AU adult use sales, leading to higher gross margins.
  • Illinois: Recently resumed adult use operations at Chicago dispensary following interruptions due to COVID-19; Aurora cultivation buildout completed and fully planted; commenced wholesale operations in April with expected weekly production capacity of over 37,000 grams of Dry Weight Equivalent (DWE).
  • Virginia: Received approval to begin cultivation in 62,000ft2 vertically integrated facility and expect to have first harvest in 2H 2020.
  • New Jersey: Completed construction on more than 50,000ft2 vertically integrated facility with first harvest expected in early July. Actively hiring staff and anticipate opening first dispensary in Vineland in June to take advantage of wholesale supply availability.

Management Commentary

As we navigate the COVID-19 pandemic, our primary focus continues to be the health and well-being of our employees and the communities we serve across the country.

Nicholas Vita, CEO of Columbia Care

Although we experienced record sales during the initial wave of stay-at-home mandates, we were not immune to disruptions and political risk that comes with volatile environments like the one we are currently experiencing. Despite localized headwinds, Columbia Care performed well and exceeded expectations as we continue to accelerate towards profitability.

“In addition to the strong operational performance, we have added more than $45 million of liquidity through recent financings during one of the most turbulent periods in the history of the global capital markets, which speaks to investors’ confidence in our company’s strength and resiliency. In the wake of COVID-19, we continue to monitor performance measures and adjust our overhead and operating costs accordingly. We continue to focus our efforts and resources on leading and driving profitability in each of our markets – something we believe will demonstrate the power our operating model.”

Recent Financing

The Company also expects today to close its previously announced private placement offering (the “Offering”) of debenture units (the “Units”) for aggregate gross proceeds of $34.5 million, $14.3 million of which was funded in the first quarter. Each Unit is comprised of one 13% senior-secured first lien note due May 14, 2023 and one common share purchase warrant, having a three year term. In connection with the Offering, the Company issued 2,418,188 warrants with exercise prices between C$2.95 and C$3.10. The Offering was conducted on a “best-efforts” basis pursuant to the terms of an agency agreement dated May 11, 2020, between the Company and Canaccord Genuity Corp., as agent in respect of the Offering.

Conference Call and Webcast Details

To access the live conference call via telephone, please dial 1-877-407-8914 (US callers) or 1-201-493-6795 (international callers) and provide passcode EQUI-EVT 22. A live audio webcast of the call will also be available in the Investor Relations section of the Company’s website at

A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.

Non-IFRS Financial Measures

In this press release, Columbia Care refers to certain non-IFRS financial measures, Combined Revenue, adjusted EBITDA, Combined Adjusted EBITDA, gross profit excluding changes in fair value of biological assets and inventory sold and Combined Gross Profit excluding changes in fair value of biological assets and inventory sold. These measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Columbia Care considers certain non-IFRS measures to be meaningful indicators of the performance of its business. A reconciliation of such non-IFRS financial measures to their nearest comparable IFRS measure is included in this press release and a further discussion of some of these items is contained in the Company’s Management, Discussion and Analysis for the three months ended March 31, 2020 dated May 14, 2020.

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 jurisdictions(³) 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

1 Excludes changes in fair value of biological assets and inventory sold.

2 Majority of facilities became operational in late 2H2019

3 Includes Colorado, subject to successful completion of the acquisition of The Green Solution and West Virginia industrial hemp cultivation license


Original Press Release

Published by NCV Newswire
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