CCHWF - Columbia Care Raises $185 Million In Offering
Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) has completed a private placement of $185 million in 9.50% senior-secured first-lien notes due 2026. Columbia Care said it would use the money to fund capital expenditures, strategic acquisitions and for general corporate purposes.
“This non-dilutive financing provides Columbia Care with additional flexibility to continue executing on our strategic growth initiatives, especially in markets like New Jersey, New York and Virginia, where we are serving a growing number of medical patients and preparing for adult use on the horizon. We have reduced our overall cost of capital and are grateful to our investors who recognize our improved credit profile and understand the catalysts ahead,” said Nicholas Vita, CEO of Columbia Care.
In addition to the offering, the company said it had received binding commitments to exchange approximately $31.75 million of its existing 13% senior secured notes due 2023 for an equivalent amount of 2026 Notes plus accrued but unpaid interest and any negotiated premium thereon. As a result of the note exchanges, Col-Care said it has received roughly $153,250,000 million in cash.
The deal comes not long after Col-Care named Derek Watson as its Chief Financial Officer. Watson came with more than 30 years of finance and leadership experience, including in strategy, investor relations, information technology, tax, treasury, accounting, financial planning and analysis, operational improvement, and risk management.
“The search for our new CFO was a highly-selective and competitive process. This role is pivotal to our growth and will be the most important leadership position as we navigate what the future holds for banking, investments, and funding in the cannabis industry. We have found the right match in Derek and are thrilled to welcome him on board next week. His decades of experience will serve him well, and his hands-on dedication to collaboration and innovation are exactly what we need in a CFO to take us into the next phase of our company,” said Vita.
The company will report its financial results for the fourth quarter and full year ended December 31, 2021 after US financial markets close on Tuesday, March 15, 2022. In November Columbia Care revised its guidance downward for 2021 to $470M – $485M Revenue, $85M – $95M Adjusted EBITDA and 46% Adjusted Gross Margin for Full Year 2021.