The cannabis business continues to be very good for Columbia Care. The company behind many of the cannabis industry’s leading dispensaries recently reported its financial and operating results for the third quarter – and the numbers are staggering. Columbia Care posted all-time highs for a single quarter in terms of revenues and profits generated from the cultivation, manufacturing, and sale of medical cannabis and adult-use cannabis. What does this mean for Columbia Care and the rest of the cannabis industry going forward? Continue reading this blog to learn more.
Columbia Care’s Cannabis Revenues Are on the Rise
Columbia Care began as a leading provider of medical cannabis in the United States, and the company is now one of the country’s largest cannabis cultivators, manufacturers, and retail providers of both medical cannabis and recreational cannabis. Columbia Care currently operates 100 different facilities, including 76 dispensaries in numerous cannabis markets.
“Our growth strategy and operational discipline resulted in Columbia Care generating another quarter of record results.”-Nicholas Vita, Columbia Care CEO
Columbia Care generated combined revenues of nearly $180 million during Q3 2020. This resulted in a gross profit of nearly $70 million and an adjusted EBITDA of $2.4 million. These third quarter results for Columbia Care included just one month of revenues from The Green Solution (TGS), which was officially acquired on September 1. During the month that followed, TGS generated more than $9 million in revenues and more than $4 million in gross profit.
Columbia Care Acquires The Green Solution in Colorado
In addition to the strong financial results, another reason for optimism regarding Columbia’s Care continued growth is the recent acquisition of The Green Solution (TGS). Nicholas Vita, the CEO of Columbia Care, noted that the acquisition of TGS will help to solidify the parent company’s leadership position in the Colorado cannabis market. Vita added that the TGS acquisition strengthens Columbia Care’s national portfolio of cannabis brands and will provide experience and expertise as the company looks to expand into new state markets where adult-use and/or medical cannabis is either already legal or on the cusp of becoming legal.
Columbia Care Dispensaries Are Located in Top Cannabis Markets
Columbia Care has dispensaries all over the United States. Some of the key cannabis markets where Columbia Care operates dispensaries include:
- Colorado: Columbia Care revenues and gross profit in Colorado were both up 19% in Q3 when compared to Q2. These positive trends were due in large part to the acquisition of The Green Solution, the largest vertically integrated cannabis operator in the state. Columbia Care also operates a low-cost cannabis cultivation facility in Trinidad, CO.
- Illinois: Columbia Care operates a Canopy in Aurora cultivation facility and saw record revenues for cannabis flower production and cannabis flower wholesale revenues in Illinois during Q3. Columbia Care also opened an adult-use dispensary in Villa Park in September.
- New York: Columbia Care revenues in NY went up almost 25% from Q2 to Q3. This increase in cannabis revenues was fueled by the introduction of more efficient marijuana cultivation and manufacturing formats.
- Pennsylvania: Columbia Care’s Q3 revenues in Pennsylvania were up roughly 20% when compared to Q2 revenues. The surge in demand is expected to continue, prompting Columbia Care to continue pursuing expansion throughout the state.
What Does the Future Hold for Columbia Care and the U.S. Cannabis Market?
The future looks bright for Columbia Care and the United States cannabis industry in general. Columbia Care’s Q3 2020 financials showed significant growth, with a 78% increase in company profits when compared to the second quarter of 2020 and a 300% increase in profits over the third quarter of 2019. These trends are expected to continue in Q4 and into 2021.
Columbia Care expects to increase its position in California over the next year as a result of the company’s recent acquisition of Project Cannabis. Columbia Care is also expected to expand its already-strong portfolio of cannabis products with Seed & Strain, the company’s first cannabis lifestyle brand developed entirely in-house.
Contact Scythian Today for Information on Cannabis Real Estate in Colorado and Across the U.S.
Columbia Care’s acquisition of The Green Solution (TGS) was also good news for Scythian Real Estate. Scythian is a privately held fund that owns more than a dozen cannabis properties leased by TGS and operated as dispensaries. These dispensaries are located throughout Colorado, including Denver, Aurora, Fort Collins, and Black Hawk. The Green Solution is just one of the major U.S. cannabis operators that Scythian has partnered with.
To learn more about the Scythian Real Estate Fund, send us an email.
PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.