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Cannabis Summary for Jan. 8, 2021

2021-01-08 20:19 ET - Market Summary

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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index lost 1.12 to 192.76, while the CSE Composite Index edged down a fraction to 756.84. Another U.S. MSO (multistate operator) is hopping aboard the financing bandwagon, taking advantage of a burst of enthusiasm among investors expecting pro-cannabis legislation from the newly Democrat-controlled Congress and White House. With Jushi Holdings Inc. (JUSH: $7.08) recently closing an oversubscribed financing for $40-million and Curaleaf Holdings Inc. (CURA: $17.38) proposing its own financing for at least $275-million, the latest MSO seeking to tap the market is Columbia Care Inc. (CCHW), down 70 cents to $8.05 on 4.06 million shares.

Columbia Care announced last night that it wants to raise $130-million at $8.05 a share. This price is below yesterday's close of $8.75, but well above the $5 that the stock was trading at just two months ago. They have been busy months for Colombia Care. Among other things, the company closed its $52.5-million acquisition of Project Cannabis in California, arranged the $240-million (U.S.) cash-and-share takeover of Green Leaf Medical in the mid-Atlantic region, and (just yesterday) paid $15-million to acquire its second store in the limited-licence market of San Diego, Calif. Clearly it has decided that its balance sheet could use a touch-up. As of Sept. 30, Columbia had $42-million (U.S.) in cash, which it gave a boost to in October with a $20-million (U.S.) debt financing. It says the new $130-million equity financing will go toward working capital and general purposes.

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