Mr. David Hart reports

THE CANNABIST COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

The Cannabist Company Holdings Inc. has released its financial and operating results for the fourth quarter and full year ended Dec. 31, 2024. All financial information presented in this news release is in U.S. GAAP (generally accepted accounting principles), unaudited, and all dollar figures are in U.S. dollars, unless otherwise noted.

"As we continued our company's transformation throughout 2024, we implemented structural changes to the business and executed on key initiatives to optimize our retail and cultivation assets, divest non-strategic assets, root out supply chain inefficiencies, and capitalize on adult-use adoption in Ohio. Employing a comprehensive approach to balance sheet management, on Feb. 27, we announced an agreement to extend the maturities on our senior secured debt until December, 2028, with options to extend through 2029. With currently 70-per-cent support from our noteholders, we are confident that this process will be completed. This transaction provides runway for us to focus on the continued optimization of our business, as we complete divestitures, continue to reduce operating and overhead costs, refine our inventory assortment, and improve the operational and financial performance of the company," said David Hart, chief executive officer of The Cannabist Company.

He continued: "Our mandate in 2025 is to continue to simplify our business, maintain liquidity, improve margins and drive cash flow generation, putting us in a position to succeed. We have meaningful catalysts in 2025, including the transition to adult use in Delaware, and the addition of retail locations in top markets such as Virginia and Ohio."

Top five markets by revenue in Q4 (fourth quarter) (listed alphabetically):  Colorado, Maryland, New Jersey, Ohio and Virginia

Top five markets by adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in Q4 (listed alphabetically):  Maryland, New Jersey, New York, Ohio and Virginia

Financial highlights for the fourth quarter and full year 2024:

• Fourth quarter revenue was $96.1-million, a decrease of 16 per cent from the third quarter, primarily as a result of the sale of eastern Virginia and Arizona businesses in August, as well as 14 stores in Florida during Q4.
• Gross margin in the fourth quarter was 35 per cent, down sequentially, but up 120 basis points compared with Q4 2023. For the full year 2024, adjusted gross margin remained flat at 38 per cent.
• Adjusted EBITDA in Q4 was $7.0-million, as compared with $14.8-million in Q3, the sequential contraction largely driven by the sale of assets in Virginia and Arizona, which closed during Q3 (third quarter), as well as pricing pressure in several key markets.
• For the 12 markets remaining following divestiture of Florida and Washington, gross margin for FY (fiscal year) 2024 increased more than 200 basis points year over year and adjusted EBITDA margin for the full year was essentially flat, compared with 2023, for those 12 markets.
• Q4 results were impacted by a $3.1-million provision for credit losses and a $2.1-million intangible impairment.
• On Nov. 7, the company closed on the sale of all 14 Cannabist dispensaries and two cultivation facilities in Florida for consideration of $5-million; the transactions for the sale of the remaining MMTC licence and one cultivation facility are pending finalization.
• Capital expenditures in the fourth quarter were $1.7-million; the company continues to expect capital expenditures to average $2-million to $3-million per quarter again in 2025.
• In Q4 2024, the company achieved positive operating cash flow of $4.3-million.
• The company ended the fourth quarter with $33.6-million in cash, up from $31.5-million in cash at the end of Q3.
• Through several rounds of corporate restructuring during 2024, the company achieved $23-million in annualized cost savings, due to adjustments to align with a simplified footprint.
• Subsequent to the quarter close, the company announced an agreement with noteholders to extend the maturities of senior secured notes to December, 2028, with options to extend through 2029.

Operational highlights for the fourth quarter and full year 2024:

• For FY 2024, wholesale revenue increased 11 per cent over 2023; wholesale accounted for approximately 15 per cent of total revenue in 2024, compared with 12 per cent of total revenue in 2023 and 14 per cent in 2022.
• Wholesale revenue decreased 20 per cent sequentially in Q4, impacted in part by asset sales in eastern Virginia and Arizona; wholesale represented 16 per cent of total revenue in Q4.
• New York demonstrated the largest increase in adjusted EBITDA quarter over quarter as the wholesale market improved; New York was a top-five market in gross margin and adjusted EBITDA in Q4.
• As a result of the sale of 14 retail locations in Florida, the closure of one location in Boston, the sale of one location in California, the reopening of one location in Colorado and one new opening in New Jersey during Q4, the quarter-end active retail count was 59, compared with 73 active retail locations at the end of Q3 and 86 at year-end 2023.
• In February, 2025, the company closed three underperforming locations in Colorado, bringing total active retail count to 56 at present.
• The company has additional retail locations in development, including one in Virginia and three in Ohio.

Conference call and webcast details

The company will host a conference call on Thursday, March 13, 2025, at 8 a.m. ET, to discuss financial and operating results for the fourth quarter and full year 2024.

To access the live conference call via telephone, participants must preregister on-line. After registering, instructions will be shared on how to join the call for those who wish to dial in. A live audio webcast of the call will also be available in the investor relations section of the company's website

A replay of the audio webcast will be available in the investor relations section of the company's website approximately two hours after completion of the call and will be archived for 30 days.

About The Cannabist Company Holdings Inc. (formerly known as Columbia Care)

The Cannabist Company, formerly known as Columbia Care, is one of the most experienced cultivators, manufacturers and providers of cannabis products and related services, with licences in 14 United States jurisdictions. The company operates 84 facilities, including 67 dispensaries and 17 cultivation and manufacturing facilities, including those under development. Columbia Care, now The Cannabist Company, is one of the original multistate providers of cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands, including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber.

Non-GAAP financial measures

In this news release, the company refers to certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit and adjusted gross margin. The company considers certain non-GAAP measures to be meaningful indicators of the performance of its business. These measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and may not be comparable with (and may be calculated differently by) other companies that present similar measures. Accordingly, these measures should not be considered in isolation from nor as a substitute for the company's financial information reported under GAAP. These non-GAAP measures are used to provide investors with supplemental measures of the company's operating performance and thus highlight trends in the company's business that may not otherwise be apparent when relying solely on GAAP measures. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented. The company also recognizes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of companies within the industry.

We seek Safe Harbor.