The Cannabist Company Holdings Inc. (CBSTF) reported its financial results today for the third quarter (Q3) that ended September 30, 2023.

Q3 Financial Highlights

Financial results are reported in U.S. dollars and are in comparison to those reported in Q2.

• Revenue: N/C @ $129.2M
• Gross Profit: DOWN 28.7% to $37.1M 
  • Adj. Gross Margin: DOWN to 38.9% from 40.3%
• Adj. EBITDA: DOWN 2.4% to $20.5M
  • Adj. EBITDA Margin: UP to 15.9% from 15.7%
• Net Income (Loss): DOWN 24.8% to $(36.2)M
• Cash on Hand: UP 63% to $60.3M

Q3 Operational Highlights

• Wholesale revenue increased 3.3% sequentially to $15.7 million
• Retail revenue was flat sequentially, with an increase in overall transactions offset by a decline in average basket size across the portfolio
• Maryland revenue increased 55% sequentially
• New Jersey’s two active retail locations remain among the top dispensaries in the Company’s portfolio
• opened one Cannabist location in Virginia, bringing the total active store count to 86
• Virginia remains a top market by revenue and adjusted EBITDA, with 10 retail locations in operation
•  now counts more than 70 high potency strains (25% THC or higher) throughout the portfolio, which affords our flower a premium price in the market
• unveiled a new name and brand identity, evolving from Columbia Care Inc. to The Cannabist Company Holdings Inc. on September 19th
• launched various new form factors of brands across our national portfolio, including Amber, Press 2.0, and Triple Seven
• In-house brands accounted for over 60% of all flower sold at The Cannabist Company owned dispensaries
• owned brands made up 50% of sales
• there are 36 Cannabist locations in the U.S.
• voluntary delisted its shares from the Canadian Securities Exchange "CSE", which was effective as of August 2; the Cboe Canada remains the Company’s primary exchange
• With the Company’s name change to The Cannabist Company, shares began trading under new ticker symbols of CBST on the Cboe Canada and CBSTF on OTC Markets in September
• On September 21, the Company closed on a US $25 million unit offering at a price of C$1.52 per share, the proceeds from which were used on October 23 to effect a partial redemption of $25 million of the $38.2 million outstanding 13% notes due May 2024
• The Company has signed definitive agreements, subject to closing conditions, to divest its Utah license and retail location for $6.6 million

Management Commentary

Nicholas Vita, the CEO, said:

• "...In July, we announced the mutual agreement to terminate the pending merger agreement...[and]
• less than two months later, we announced the transition from Columbia Care to The Cannabist Company...
• We will continue to make progress, as we did in the third quarter, toward proactively managing our balance sheet and improving liquidity..."

Stock Performance

The company's stock price has gone UP 28.6% so far in November but remains DOWN 36.0% YTD

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