November 2021 - Scythian

Cannabis company Columbia Care had record Q3 2021 cannabis revenues, with third quarter revenues topping $132 million. The company recently released its financial and operating results to the public, and the numbers are staggering. In addition to more than $132 million in quarterly revenues from medical marijuana sales, Columbia Care also posted an adjusted gross profit of more than $64 million. The promising financial figures bode well for the cannabis operator going forward, as well as for the cannabis industry as a whole.

To learn more about Columbia Care’s record quarterly results, keep reading this blog.

Columbia Care Posts Record Quarterly Revenue for Cannabis Sales

Columbia Care, one of the country’s largest and most successful multi-state cannabis operators, recently released its quarterly economic report. The data shows that the company posted an all-time record for a single quarter during Q3 2021, with $132.3 million in cannabis revenues. This represented a substantial 144% increase over the third quarter of 2020, and a 21% increase over the second quarter in 2021.

These were the company’s top cannabis markets in terms of revenue during the third quarter:

California: Columbia Care upgraded its cultivation facilities in California to increase capacity and yield, as well as the quality of marijuana production in the state.
Colorado: Columbia Care saw harvesting in Trinidad set records for grams per cannabis plant and THC levels.
Massachusetts: Columbia Care had record wholesale revenues in the state, with a major boost coming from the start of adult use sales at the Boston Cannabist dispensary.
Ohio: Columbia Care had record retail transaction volume in the state, fueled in part by the expansion of Columbia Care brand flower to more than 90% of Ohio dispensaries.
Pennsylvania: Cannabis revenues at Pennsylvania dispensaries were up approximately 85% over the third quarter of 2021. The company also plans to introduce Columbia Care brand flower and other products to PA dispensaries in the fourth quarter.

Columbia Care Projects All-Time High for Annual Cannabis Revenues in 2021

Given the steady increase in revenues during the first three quarters of 2021, Columbia Care now projects to hit nearly $500 million in total cannabis revenues for the entire year. After the quarterly financial results were revealed, the company provided revised guidance to show projected annual revenues of between $470 million and $485 million.

Nicholas Vita, the CEO of Columbia Care, said that the company expects to have strong growth in the months ahead as they continue to execute on a nationwide strategy that includes opening new dispensaries and rolling out new cannabis products. Vita noted that Columbia Care opened dispensaries in New Jersey and Missouri during the third quarter, as well as converting existing Columbia Care locations to Cannabist retail stores.

Future Looks Bright for Cannabis Industry Leader Columbia Care in 2022 and Beyond

Columbia Care is an industry leader in providing medical marijuana to qualifying patients throughout the United States. The company is dedicated to increasing the health and wellness of individuals by emphasizing individualized medical care and treatment involving high-quality cannabis, which is offered through in-house brands such as ClaraCeed, EleCeed, Medical Cannabis, and TheraCeed. Columbia Care operates in several states, with 39 current cannabis licenses in 15 different markets. The company also has 63 facilities that are utilized for either cannabis operation/distribution or development of new cannabis products.

Columbia Care is well positioned to scale in a number of lucrative cannabis markets, including New Jersey, New York, and Virginia. CEO Nicholas Vita observed that October saw the company complete “the largest single-day national flower brand launch in the history of the industry.”

Contact Scythian Real Estate Today

Scythian Real Estate is a privately held cannabis fund that has partnered with a number of major cannabis operators, including Columbia Care. Scythian’s relationship with Columbia Care extends to more than a dozen dispensaries operating under The Green Solution (TGS) and for which Scythian provided financing through sale-leaseback deals.

For more information about Scythian Real Estate, send 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.

Retail sales of cannabis are at an all-time high in many states where marijuana has been legalized for adult use, and Colorado cannabis cultivators responded to the increased demand for recreational marijuana by growing a record amount of cannabis in 2020. As flower, concentrates, edibles, and other recreational marijuana products continue to sell extremely well at dispensaries in 2021, the expectation is that cannabis cultivators will need to produce even more product for Colorado’s adult-use market.

To learn more about the effect of recreational marijuana retail sales on Colorado cannabis cultivators, keep reading this blog.

Colorado Cannabis Market Thriving with Increased Sales of Flower, Concentrates, and Edibles

Data recently released by the Colorado Department of Revenue shows that major cannabis operators approved for cultivation in Colorado grew approximately 1.8 million pounds of cannabis in 2020. This represented a sizable 24% increase over the total amount of cannabis grown in 2019. Moreover, those 1.8 million pounds of cannabis came from roughly 3.7 million plants.

According to the Department of Revenue report, more than two-thirds of all cannabis produced in Colorado last year was eventually sold on the adult-use marijuana market. Data indicates that 72% of retail sales were for recreational marijuana, while the remaining 28% of sales were for medical marijuana. The vast majority of cannabis concentrates (85%), edibles (89%), and infused products (87%) were sold on the adult-use market. These sales figures align with the recent trend in cannabis licenses in Colorado: the number of adult-use licenses issued to dispensaries rose by nearly 2% last year, while the number of medical marijuana licenses declined slightly.

Colorado Cannabis Cultivators Growing Marijuana for Retail Market at Record Pace

The increase in cannabis cultivation in Colorado was a direct result of the surge in demand for legal marijuana, particularly adult-use marijuana. The total revenue generated by all cannabis sales in Colorado during 2020 was $2.19 billion, which was substantially higher than the $1.79 billion in cannabis revenues generated during 2019. So far in 2021, the numbers are even higher: over the first six (6) months, total marijuana sales eclipsed $1.35 billion.

Additionally, the increased demand for cannabis on the retail market has led to a shorter seed-to-sale time: it took just 126 days for cannabis to go from a cultivation site to a dispensary last year. This was six fewer days than it took, on average, in 2017.

Contact Denver-Based Scythian Real Estate Today

Scythian Real Estate is a privately held cannabis fund that works with major cannabis operators like The Green Solution, Columbia Care, and Schwazze. For more information about Scythian Real Estate, send an email.