The Cannabist Company said that it has sold its three dispensaries in Pennsylvania and that it will now pivot to a wholesale model only in the state, which legalized medical cannabis nearly 10 years ago but is still struggling to pass adult-use recreational cannabis legislation.
David Hart, CEO of The Cannabist Company, said maintaining wholesale operations will help with "retaining exposure for an eventual adult use transition."
We made strides with footprint optimization and bringing cash onto the balance sheet during the quarter, The Pennsylvania transactions come during a quarter which also saw the company close on the sale of its remaining license in Florida and two retail locations in California as well as sign an MSA for its manufacturing and production facility in Balboa, California, in advance of a final sale of that facility. All of those deals are part of what it calls "footprint optimization."
“As we continued to make progress in optimizing the business, we saw a 30-basis point improvement in adjusted EBITDA margin sequentially. We will continue to take costs out of the business and right-size operations, while we enhance our product offering and improve pricing architecture. We are thrilled to have launched adult use at all three of our locations in Delaware on August 1 and look forward to opening additional retail locations in Ohio during the third and fourth quarters. Our focus remains on managing liquidity, proactively addressing the balance sheet, and optimizing our operating footprint," Hart said.
Cannabist Company's second quarter revenue totaled $86.4 million, remaining largely flat year over year.
