We got more earnings this week, but the really big news was the acquisition of Columbia Care by Cresco Labs. The $2 billion deal will make it the largest marijuana company in the U.S. The combined companies would be larger than Curaleaf, which had $1.2 billion in revenue. Cresco has 50 dispensaries and 21 cultivation facilities in 10 states. Columbia Care has 99 dispensaries and 32 cultivation facilities in 18 states. The combined companies have about 6,100 employees.
Both reported earnings this week as well. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million and revenue rose 73% in 2021 to $822 million. Of concern is that the company’s debt is growing along with huge interest payments. Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported revenue in the fourth quarter of 2021 rose 70% over last year to $139 million and the full-year 2021 revenue rose 156% to $460 million.
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced its total revenue rose 104% to $65.9 million in the fourth quarter over last year. For the full year, total revenue of $209.3 million increased approximately 159% year-over-year.
Nova Cannabis Inc. (TSX: NOVC) reported its fourth-quarter sales increased 175.9% to $47.6 million. Sales for 2021 were $134.4 million, a 112.2% increase from $63.3 million in 2020.
Charlotte’s Web (TSX: CWEB) (OTCQX: CWBHF) reported that fourth-quarter revenue fell 7.8 % to $24.8 million from $26.9 million for the same time period in 2020. For the full year of 2021, net revenue grew 1.0%, to $96.1 million and the net loss for the year was $137 million.
Other bigs news involved, a complaint filed in the New York County Supreme Court and the Southern District of Florida by some investors of privately-owned Surterra Wellness, now known as Parallel. they are pretty angry about what happened to their investment dollars. While the documents were heavily redacted, the cases suggest that Wrigley loaded up Parallel with excessive debt and misrepresented the health of the cannabis company. The complaint alleges that his goal was to get the company taken public through the Ceres Acquisition Corp SPAC and then exiting with a profit. The Ceres deal failed once the investors saw what they were buying.