THE CANNABIST CO HLDG - CBSTF STOCK NEWS

The Cannabist Company Holdings Inc. (OTCQX: CBSTF) has launched its popular brand Seed & Strain in Pennsylvania, marking the 11th market for the brand. The initial product lineup includes 1.0-gram vape cartridges and whole flower, available at Columbia Care locations in Allentown, Scranton, and Wilkes-Barre, as well as through wholesale channels. Additional products are expected to be introduced in the coming weeks, pending regulatory approval.

Seed & Strain is now available in 11 markets across the U.S., offering a wide range of cannabis products including whole flower, pre-rolls, vapes, concentrates, tinctures, and topicals. The brand's expansion into Pennsylvania aligns with The Cannabist Company's strategy to grow its wholesale program with branded and manufactured products, capitalizing on the potential evolution of the state's market into adult use.

MINT Cannabis and Shango have formed a joint venture (MINT SHANGO JV) to acquire The Cannabist Company's Florida subsidiary for $5M. This acquisition includes 14 dispensaries, two cultivation and manufacturing facilities, inventory, and an MMTC license. Key points:

1. MINT will focus on retail operations, rebranding dispensaries as 'MINT Dispensary'
2. SHANGO will bring its product line and cultivation expertise
3. Plans to expand to 35 MINT-branded dispensaries in 18 months
4. Florida's medical cannabis market exceeded $2B in sales in 2023
5. Potential for adult-use legalization in November 2024 vote

The deal is subject to regulatory approval. This acquisition positions MINT SHANGO JV for significant growth in Florida's expanding cannabis market.

The Cannabist Company (CBOE CA: CBST, OTCQX: CBSTF) has announced definitive agreements to sell its Florida assets for a total consideration of $16.4 million. The transactions include:

1. Sale of the Lakeland cultivation facility to a leading multistate operator for $11.4 million in cash.

2. Sale of 14 Cannabist dispensaries and two cultivation/manufacturing facilities to a joint venture between MINT Cannabis and Shango for $5 million.

These strategic moves align with the company's efforts to rationalize its footprint, focus on growth markets, and enhance profitability. The Florida assets represent less than 5% of revenue and were loss-making operations. Upon completion, The Cannabist Company's operational footprint will be reduced to 13 markets, further decreasing to 12 after finalizing its exit from Washington, DC.

The Cannabist Company (OTCQX: CBSTF) has expanded its collaboration with ButACake, a minority-owned edibles company, to the Maryland market. This expansion includes the launch of ButACake's popular oral dissolvable strips in 10mg, 2-pack varieties of Ginger Peach, Chocolate Mint, and Blue Blizzard. The products are available at select gLeaf and Columbia Care locations in Maryland.

This marks ButACake's third market entry, following successful launches in Delaware (April 2023) and New Jersey (late 2023). ButACake, founded by pastry chef Matha Figaro in 2015, has become a top-selling edibles brand at Cannabist locations in Delaware and New Jersey. The collaboration allows The Cannabist Company to diversify its product offerings and increase capacity at its facilities to meet growing market demands.

The Cannabist Company reported its Q2 2024 financial results, showing sequential improvement in key metrics. Revenue increased 2% to $125.19 million from Q1, while Adjusted EBITDA rose to $17.54 million with a 14% margin. Gross profit reached $48.05 million. The company saw growth in wholesale revenue and improved gross margins in this segment. Top markets by revenue and Adjusted EBITDA were Colorado, Maryland, New Jersey, Ohio, and Virginia.

The company ended Q2 with $22 million in cash and implemented a corporate restructuring expected to save $10 million annually. Post-quarter, The Cannabist Company announced agreements to divest assets in Eastern Virginia and Arizona for $105 million. The company continues to focus on enhancing profitability and progressing towards free cash flow generation.

The Cannabist Company (OTCQX: CBSTF) is set to begin adult-use cannabis sales in Ohio on August 6, 2023, at 8 a.m. The company received certificates of operation for eight dual-use licenses, including five dispensary licenses, from the Ohio Division of Cannabis Control. This allows them to sell non-medical cannabis products at their retail locations and through wholesale channels.

The company operates five dispensaries in Ohio, located in Dayton, Logan, Marietta, Monroe, and Warren. They plan to open three additional retail locations and have received site approval for a potential dispensary in central Ohio. The Cannabist Company also has two cultivation and manufacturing facilities in Mt. Orab and Columbus, totaling nearly 120,000 square feet.

Currently, the company offers three brands in Ohio: Classix, Seed and Strain, and Triple Seven. They plan to launch additional house brands in the coming months, pending regulatory approval.

The Cannabist Company (OTCQX: CBSTF) has expanded its partnership with Airo Brands by launching Oria by Airo, a premium line of live resin-infused gummies, in New Jersey. Oria offers six terpene-enhanced formulations, including three with minor cannabinoids. The edibles are designed for fast absorption and increased efficiency, mirroring Airo's vaping experience.

The partnership leverages The Cannabist Company's cultivation and manufacturing capabilities, along with its retail and wholesale channels. This expansion follows successful launches in Delaware and West Virginia, with plans for additional market launches in the coming months, pending regulatory approval.

The Cannabist Company has expanded its partnership with Old Pal, a top-performing lifestyle cannabis brand, into New Jersey and enhanced offerings in Maryland and Virginia. In New Jersey, they've launched Old Pal classic and infused blunts, 2-pack pre-rolls, and the signature 7g Ready to Roll kit. Maryland now offers 14-pk pre-rolls, 1-oz flower, and vape carts, while Virginia has introduced 14g Ready to Roll kits and 2g classic blunts.

The collaboration aims to meet increased demand in growing East Coast markets. Jesse Channon, President of The Cannabist Company, highlighted the success of the partnership and its contribution to overall performance. Rusty Wilenkin, Old Pal's Co-founder and CEO, expressed enthusiasm about the rapid sales and expansion plans. The partnership leverages The Cannabist Company's cultivation and manufacturing capabilities to bring Old Pal's products to new markets.

The Cannabist Company will report its Q2 2024 financial results on August 8, 2024, before U.S. markets open. The results cover the period ending June 30, 2024. Following the release, management will hold a conference call at 8:00 a.m. EST to discuss the financial and operational performance.

Participants can join the call by pre-registering at the provided link, with further instructions available upon registration. The call will also be webcast live on the company's Investor Relations website and accessible for replay approximately two hours after the call, archiving for 30 days.