Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”
“We are pleased to deliver revenue growth of over 100% year-over-year and over 50% sequentially. With the majority of our facilities and markets in development, as well as several important product and service launches anticipated in the third and fourth quarters, we look forward to the future,” said Nicholas Vita, chief executive officer of Columbia Care. “The capital we raised through our going public transaction has enabled us to leverage our scale, innovation, differentiated strategy and diversified growth initiatives across all of our jurisdictions, including our four most recent market launches in Florida, California, Ohio and Puerto Rico.”
Gross profits were essentially flat for the second quarter at $5.2 million over the same time period in 2018. The company reported that adjusted EBITDA of ($11.4) million compared to ($1.7) million for the prior-year period, reflected new market expansion, facility expenses, organizational growth and expenses related to the company’s go-public transaction.
Following the end of the second quarter, Columbia Care has launched operations in Florida, Ohio and Puerto Rico. It now has ongoing expansion activities in 12 of its 15 licensed jurisdictions. The company also reported that it has $125.3 million cash on hand as of June 30, 2019, and no debt.
In June Columbia Care announced that it received both Schedule I controlled substance manufacturing and export licenses from the New York State Department of Health. The company said that the licenses demonstrate Columbia Care’s ability to meet New York State’s most stringent requirements regarding the handling and production of consistent, high-quality medical cannabis products for domestic research and global export, and supports its pending application with the US Drug Enforcement Administration (DEA) to permit distribution for research purposes throughout the US and for research and commercial medical purposes internationally. Subject to DEA approval, the Schedule I licenses will enable the company to participate in clinical research and export Schedule I cannabis-based medicines globally.