Columbia Care to Redeploy Capital, Enhance Liquidity

2023 Expansion Highlights:

• Opened three stores in Virginia and one store in West Virginia 
• Sold Missouri operations, closed three unprofitable retail locations in Colorado and one in California
• Consolidated cultivation operations in California, Colorado and Pennsylvania to improve adjusted EBIDA contribution
• Launched adult-use cannabis sales July 1 at three retail locations in Maryland
• Anticipating the close of the Cresco Labs transaction 

Commentary:

Nicholas Vita, CEO, Columbia Care, on the company’s first quarter 2023 earnings call: “We’ve made the decision to focus on the markets that are really driving the most value. I think our strategy, up until the restructuring was announced, was to have our fingers in a lot of pots. And that has served us well. But at this point, especially in the context of the Cresco merger, we’re not in a position to go out and continue to scale into a lot of these markets, so we really need to focus on the markets where we already have scaled. Thankfully, we have enormous scale in a number of very meaningful markets that are providing us with a very attractive runway going forward. So, when you look at a market like Missouri, the decision to exit was as much about driving profitability and margins as it was to do a relative value assessment: Where are we going to be able to either redeploy that capital or enhance liquidity to improve our overall performance? So, we don’t have a lot of assets like that, but whatever assets in the portfolio that remain can certainly fall under that bucket if we pushed in that direction.”