THE CANNABIST CO HLDG - CBSTF STOCK NEWS

The Cannabist Company announced a corporate restructuring and divestitures in Florida to enhance profitability and streamline operations. The restructuring, expected to save $10 million annually, includes labor and non-labor reductions and exiting the Florida market, which contributed less than 5% of Q1 2024 revenue. The company plans to sell its Florida assets, including 14 retail locations and three cultivation facilities, with $2.75 million already in escrow. CEO David Hart emphasized the company's focus on profitable markets like Virginia and New Jersey, and preparations for adult use transitions in Ohio and Delaware. The restructuring aims to improve margins and generate significant EBITDA improvements, with an anticipated $20 million annualized boost. Cannabist has closed underperforming locations and adjusted operational hours in New York, while opening new locations in Virginia and New Jersey.

The Cannabist Company Holdings has expanded its footprint in Virginia by opening its 11th dispensary, Cannabist Richmond, located at 4320 S Laburnum Ave. This new location aims to serve registered medical patients, offering a variety of cannabis products including flower, pre-rolls, edibles, and concentrates under brands like Classix, gLeaf, Hedy, Press, Triple Seven, and Seed & Strain. The company's proprietary retail technology will enhance the customer experience through educational resources and personalized recommendations. The Cannabist Company operates nearly 148,000 square feet of cultivation and manufacturing capacity in Virginia and maintains a retail presence in several major cities.

The Cannabist Company (CBSTF) lauds President Biden's move to reclassify cannabis from a Schedule I to a Schedule III Controlled Substance. This change, once finalized, will acknowledge the medicinal value of cannabis, making it more accessible and affordable. CEO David Hart highlighted that this will eliminate the burdensome 280E tax code, enabling the company to reinvest in innovation and community benefits. SVP Adam Goers emphasized the potential for enhanced research opportunities and the progression towards full legalization. The company has actively collaborated with the Biden Administration throughout this 20-month process.

The Cannabist Company Holdings Inc. reported its financial and operating results for the first quarter of 2024, showing an improvement in margin basis over the prior quarter. The company aims to build a better business, focusing on improving margins and generating free cash flow. Despite early successes, there is acknowledgment of more work needed for a materially improved financial position by the end of 2024.

Operational highlights include improved gross margins in wholesale and retail segments, strategic brand partnerships to increase manufacturing facility throughput, and new brand launches in various states. Financially, the company ended the quarter with $44.5 million in cash, closed private placement offerings, and managed capital expenditures while divesting its Utah license and retail location.

Overall, The Cannabist Company is optimistic about growth opportunities in key markets and is actively working towards enhancing its financial position for better competition in the industry.