Filed pursuant to Rule 424(b)(3)
Registration No. 333-265095

PROSPECTUS SUPPLEMENT NO. 1
(to Prospectus dated June 22, 2022)

Columbia Care Inc.

18,755,082 Common Shares

The prospectus supplement modifies and supplements the prospectus of Columbia Care Inc. (the “Company”) dated June 22, 2022, which relates to the sale of 18,755,082 common shares of the Company that may be sold from time to time by selling securityholders.

This prospectus supplement should be read in conjunction with, and may not be delivered or utilized without, the prospectus, including any amendments or supplements thereto. This prospectus supplement is qualified in its entirety by reference to the prospectus, except to the extent that the information in this prospectus supplement supersedes the information contained in the prospectus.

This prospectus supplement includes the attached quarterly report on Form 10-Q, as filed with the Securities and Exchange Commission (the “SEC”) on August 15, 2022.

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

The date of this prospectus supplement is August 15, 2022.


 


 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __to __

Commission File Number: 000-56294

 

COLUMBIA CARE INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

British Columbia

98-1488978

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

680 Fifth Ave., 24th Floor

New York, New York

10019

 

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (212) 634-7100

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

 

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes   No  

As of August 8, 2022, there were 386,406,231 shares of common stock, no par value per share, outstanding.

 

 

 

 


 

Table of Contents

 

 

 

Page

FORWARD-LOOKING STATEMENTS

2

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

 

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations and Comprehensive Loss

4

 

Condensed Consolidated Statements of Changes in Equity

5

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

28

Item 4.

Controls and Procedures

28

PART II.

OTHER INFORMATION

29

Item 1.

Legal Proceedings

29

Item 1A.

Risk Factors

29

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

Item 3.

Defaults Upon Senior Securities

29

Item 4.

Mine Safety Disclosures

29

Item 5.

Other Information

29

Item 6.

Exhibits

30

Signatures

32

 

 

 

i


 

 

 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” regarding Columbia Care Inc. and its subsidiaries (collectively referred to as “Columbia Care,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates, and projections that are uncertain and often contain words such as, but not limited to, “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. Particular risks and uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include those listed below:

the satisfaction of the conditions precedent to the closing of the Cresco Transaction (as defined herein);

the receipt of any necessary regulatory approvals in connection with Cresco Transaction (as defined herein);

the impact of the Cresco Transaction (as defined herein) on the Company’s current and future operations, financial condition and prospects;

the value of the Cresco Labs Shares (as defined herein);

the costs of the Cresco Transaction (as defined herein) and potential payment of a termination fee in connection with the Cresco Transaction (as defined herein);

the ability to successfully integrate with the operations of Cresco Labs (as defined herein) and realize the expected benefits of the Cresco Transaction (as defined herein);

the fact that marijuana remains illegal under federal law;

the application of anti-money laundering laws and regulations to the Company;

legal, regulatory, or political change to the cannabis industry;

access to the services of banks;

access to public and private capital;

unfavorable publicity or consumer perception of the cannabis industry;

expansion to the adult-use market;

the impact of laws, regulations, and guidelines;

the impact of Section 280E of the Internal Revenue Code;

the impact of state laws pertaining to the cannabis industry;

the Company’s reliance on key inputs, suppliers and skilled labor;

the difficulty of forecasting the Company’s sales;

constraints on marketing products;

potential cyber-attacks and security breaches;

net operating loss and other tax attribute limitations;

the impact of changes in tax laws;

the volatility of the market price of the Common Shares;

reliance on management;

litigation;

future results and financial projections; and

the impact of global financial conditions

The list of factors above is illustrative and by no means exhaustive. Additional information regarding these risks and other risks and uncertainties we face is contained in this Quarterly Report on Form 10-Q, our Annual Report on Form 10-K for the year ended December 31, 2021, and our Form 10, dated May 9, 2022. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended.

We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

 

2


 

 

COLUMBIA CARE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Expressed in thousands of U.S. dollars, except share data)

 

 

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

81,440

 

 

$

82,198

 

Accounts receivable, net of allowances of $2,222 and, $2,542, respectively

 

 

11,193

 

 

 

18,302

 

Inventory

 

 

121,514

 

 

 

94,567

 

Prepaid expenses and other current assets

 

 

28,333

 

 

 

29,252

 

Prepaid Income Tax

 

 

11,510

 

 

 

 

Assets held for sale

 

 

2,120

 

 

 

2,120

 

Total current assets

 

 

256,110

 

 

 

226,439

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

373,877

 

 

 

339,692

 

Right of use assets - operating leases, net

 

 

190,204

 

 

 

179,099

 

Right of use assets - finance leases, net

 

 

64,645

 

 

 

66,442

 

Goodwill

 

 

184,018

 

 

 

184,018

 

Intangible assets, net

 

 

337,798

 

 

 

367,787

 

Other non-current assets

 

 

13,813

 

 

 

13,035

 

Total assets

 

 

1,420,465

 

 

 

1,376,512

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

 

35,046

 

 

 

44,007

 

Accrued expenses and other current liabilities

 

 

57,211

 

 

 

126,954

 

Income tax payable

 

 

 

 

26,537

 

Contingent consideration

 

 

25,680

 

 

 

29,345

 

Current portion of lease liability - operating leases

 

 

9,266

 

 

 

9,056

 

Current portion of lease liability - finance leases

 

 

5,665

 

 

 

5,092

 

Current portion of long-term debt, net

 

 

4,509

 

 

 

1,884

 

Liabilities held for sale

 

 

1,122

 

 

 

1,122

 

Total current liabilities

 

 

138,499

 

 

 

243,997

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

321,157

 

 

 

159,017

 

Deferred taxes

 

 

85,908

 

 

 

79,477

 

Long-term lease liability - operating leases

 

 

188,201

 

 

 

176,004

 

Long-term lease liability - finance leases

 

 

68,534

 

 

 

70,268

 

Contingent consideration

 

 

11,680

 

 

 

11,596

 

Derivative liability

 

 

1,098

 

 

 

6,795

 

Other long-term liabilities

 

 

77,419

 

 

 

78,535

 

Total liabilities

 

 

892,496

 

 

 

825,689

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common Stock, no par value, unlimited shares authorized as of June 30, 2022 and December 31, 2021, respectively, 386,406,231 and 361,423,270 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Preferred Stock, no par value, unlimited shares authorized as of June 30, 2022 and December 31, 2021, respectively, none issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

 

 

 

 

Proportionate voting shares, no par value, unlimited shares authorized as of June 30, 2022 and December 31, 2021, respectively; 12,298,128 and 14,729,636 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

 

 

 

 

Additional paid-in-capital

 

 

1,099,033

 

 

 

1,039,726

 

Accumulated deficit

 

 

(568,462

)

 

 

(468,335

)

Equity attributable to Columbia Care Inc.

 

 

530,571

 

 

 

571,391

 

Non-controlling interest

 

 

(2,602

)

 

 

(20,568

)

Total equity

 

 

527,969

 

 

 

550,823

 

Total liabilities and equity

 

$

1,420,465

 

 

$

1,376,512

 

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

3


 

 

COLUMBIA CARE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(Expressed in thousands of U.S. dollars, except for number of shares and per share amounts)

 

 

 

Three months ended

 

 

Six months ended

 

 

June 30, 2022

 

 

June 30, 2021

 

 

June 30, 2022

 

 

June 30, 2021

 

 

Revenue

 

$

129,571

 

 

$

102,387

 

 

$

252,658

 

 

$

188,482

 

 

Cost of sales related to inventory production

 

 

(78,723

)

 

 

(59,288

)

 

 

(145,183

)

 

 

(111,595

)

 

Cost of sales related to business combination fair value adjustments to inventory

 

 

 

 

 

(1,352

)

 

 

-

 

 

 

(1,492

)

 

Gross profit

 

 

50,848

 

 

 

41,747

 

 

 

107,475

 

 

 

75,395

 

 

Selling, general and administrative expenses

 

 

(72,956

)

 

 

(52,503

)

 

 

(144,248

)

 

 

(100,537

)

 

Loss from operations

 

 

(22,108

)

 

 

(10,756

)

 

 

(36,773

)

 

 

(25,142

)

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (expense) income on leases, net

 

 

(1,370

)

 

 

(1,614

)

 

 

(2,796

)

 

 

(2,764

)

 

Interest (expense) income, net

 

 

(11,484

)

 

 

(4,009

)

 

 

(22,728

)

 

 

(7,865

)

 

Other income (expense), net

 

 

(591

)

 

 

572

 

 

 

(530

)

 

 

319

 

 

Total other expense

 

 

(13,445

)

 

 

(5,051

)

 

 

(26,054

)

 

 

(10,310

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(35,553

)

 

 

(15,807

)

 

 

(62,827

)

 

 

(35,452

)

 

Income tax expense

 

 

(18,702

)

 

 

(2,850

)

 

 

(19,334

)

 

 

(12,368

)

 

Net loss and comprehensive loss

 

 

(54,255

)

 

 

(18,657

)

 

 

(82,161

)

 

 

(47,820

)

 

Net gain/(loss) attributable to non-controlling interests

 

 

(427

)

 

 

(513

)

 

 

(1,697

)

 

 

(894

)

 

Net loss attributable to shareholders

 

$

(53,828

)

 

$

(18,144

)

 

$

(80,464

)

 

$

(46,926

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares used in earnings per share - basic and diluted

 

 

394,023,144

 

 

 

313,771,867

 

 

 

385,258,892

 

 

 

 

 

304,346,270

 

 

Loss attributable to shares (basic and diluted)

 

$

(0.14

)

 

$

(0.06

)

 

$

(0.21

)

 

$

(0.15

)

 

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

4


 

 

COLUMBIA CARE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

(Expressed in thousands of U.S. dollars, except for number of shares)

 

 

 

 

 

 

 

 

 

Proportionate

 

 

Additional

 

 

Accumulated

 

 

Total Columbia Care Inc.

 

 

Non-Controlling

 

 

Total

 

 

 

Shares

 

 

Voting Shares

 

 

Paid-in Capital

 

 

Deficit

 

 

Shareholders' Equity

 

 

Interest

 

 

Equity

 

Balance, December 31, 2021

 

 

361,423,270

 

 

 

14,729,636

 

 

$

1,039,726

 

 

$

(468,335

)

 

$

571,391

 

 

$

(20,568

)

 

$

550,823

 

Equity-based compensation (1)

 

 

237,486

 

 

 

 

 

 

6,358

 

 

 

 

 

 

6,358

 

 

 

 

 

 

6,358

 

Warrants exercised

 

 

180,000

 

 

 

 

 

 

425

 

 

 

 

 

 

425

 

 

 

 

 

 

425

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(26,636

)

 

 

(26,636

)

 

 

(1,270

)

 

 

(27,906

)

Balance, March 31, 2022

 

 

361,840,756

 

 

 

14,729,636

 

 

$

1,046,509

 

 

$

(494,971

)

 

$

551,538

 

 

$

(21,838

)

 

$

529,700

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation (1)

 

 

21,034,418

 

 

 

 

 

 

49,346

 

 

 

 

 

 

49,346

 

 

 

 

 

 

49,346

 

Issuance of shares in connection with acquisitions

 

 

1,099,549

 

 

 

 

 

 

3,178

 

 

 

 

 

 

3,178

 

 

 

 

 

 

3,178

 

Cancellation of restricted stock awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of convertible notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion between classes of shares

 

 

2,431,508

 

 

 

(2,431,508

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest buyout

 

 

 

 

 

 

 

 

 

 

 

(19,663

)

 

 

(19,663

)

 

 

19,663

 

 

 

 

Warrants exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(53,828

)

 

 

(53,828

)

 

 

(427

)

 

 

(54,255

)

Balance, June 30, 2022

 

 

386,406,231

 

 

 

12,298,128

 

 

$

1,099,033

 

 

$

(568,462

)

 

$

530,571

 

 

$

(2,602

)

 

$

527,969

 

(1)

The amounts shown are net of any shares withheld by the Company to satisfy certain tax withholdings in connection with vesting of equity-based awards.

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.


5


COLUMBIA CARE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED)

(Unaudited)

(expressed in thousands of U.S. dollars, except for number of shares)

 

 

 

 

 

 

 

 

 

 

 

Proportionate

 

 

Additional

 

 

Accumulated

 

 

Total Columbia Care Inc.

 

 

Non-Controlling

 

 

Total

 

 

 

Shares

 

 

Voting Shares

 

 

Paid-in Capital

 

 

Deficit

 

 

Shareholders' Equity

 

 

Interest

 

 

Equity

 

Balance, December 31, 2020

 

 

250,003,917

 

 

 

26,507,914

 

 

$

632,062

 

 

$

(325,238

)

 

$

306,824

 

 

$

(19,875

)

 

$

286,949

 

Equity-based compensation (1)

 

 

190,925

 

 

 

 

 

 

7,792

 

 

 

 

 

 

7,792

 

 

 

 

 

 

7,792

 

Issuance of shares, net

 

 

21,792,500

 

 

 

 

 

 

133,151

 

 

 

 

 

 

133,151

 

 

 

 

 

 

133,151

 

Issuance of shares in connection with acquisitions

 

 

971,541

 

 

 

 

 

 

4,972

 

 

 

 

 

 

4,972

 

 

 

 

 

 

4,972

 

Conversion between classes of shares

 

 

9,236,733

 

 

 

(9,236,733

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellation of restricted stock awards

 

 

(13,770

)

 

 

(8,077

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants exercised

 

 

262,200

 

 

 

 

 

 

808

 

 

 

 

 

 

808

 

 

 

 

 

 

808

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(28,782

)

 

 

(28,782

)

 

 

(381

)

 

 

(29,163

)

Balance, March 31, 2021

 

 

282,444,046

 

 

 

17,263,104

 

 

 

778,785

 

 

 

(354,020

)

 

 

424,765

 

 

 

(20,256

)

 

 

404,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation (1)

 

 

4,787,211

 

 

 

 

 

 

2,582

 

 

 

 

 

 

2,582

 

 

 

 

 

 

2,582

 

Issuance of shares in connection with acquisitions

 

 

54,238,143

 

 

 

 

 

 

189,019

 

 

 

 

 

 

189,019

 

 

 

 

 

 

189,019

 

Conversion of convertible notes

 

 

4,550,139

 

 

 

 

 

 

23,919

 

 

 

 

 

 

23,919

 

 

 

 

 

 

23,919

 

Conversion between classes of shares

 

 

1,584,570

 

 

 

(1,584,570

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancellation of restricted stock awards

 

 

(85,755

)

 

 

(330,646

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrants exercised

 

 

551,743

 

 

 

 

 

 

1,093

 

 

 

 

 

 

1,093

 

 

 

 

 

 

1,093

 

Non-controlling interest buyouts

 

 

 

 

 

 

 

 

1,964

 

 

 

 

 

 

1,960

 

 

 

(1,960

)

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(18,144

)

 

 

(18,144

)

 

 

(513

)

 

 

(18,657

)

Balance, June 30, 2021

 

 

348,070,097

 

 

 

15,347,888

 

 

$

997,362

 

 

$

(372,164

)

 

$

625,198

 

 

$

(22,729

)

 

$

602,469

 

(1) The amounts shown are net of any shares withheld by the Company to satisfy certain tax withholdings in connection with vesting of equity-based awards.

 

 

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

6


 

 

COLUMBIA CARE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(expressed in thousands of U.S. dollars)

 

 

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(82,161

)

 

$

(47,820

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

41,268

 

 

 

17,725

 

Equity-based compensation

 

 

14,052

 

 

 

13,334

 

Debt amortization expense

 

 

4,073

 

 

 

2,428

 

Loss on Conversion of debts

 

 

-

 

 

 

1,580

 

Earnout adjustment

 

 

476

 

 

 

-

 

Provision for obsolete inventory and other assets

 

 

272

 

 

 

1,942

 

Change in fair value of derivative liability

 

 

(5,697

)

 

 

(1,913

)

Deferred taxes

 

 

13,762

 

 

 

4,888

 

Other

 

 

730

 

 

 

(154

)

Changes in operating assets and liabilities, net of acquisitions

 

 

 

 

 

 

 

 

Accounts receivable

 

 

6,978

 

 

 

1,842

 

Inventory

 

 

(27,218

)

 

 

(8,472

)

Prepaid expenses and other current assets

 

 

(1,684

)

 

 

(4,347

)

Other assets

 

 

(12,961

)

 

 

5,578

 

Payroll liabilities

 

 

(1,230

)

 

 

(1,994

)

Accounts payable

 

 

(2,920

)

 

 

(110

)

Accrued expenses and other current liabilities

 

 

(22,842

)

 

 

(4,991

)

Income taxes payable

 

 

(38,047

)

 

 

3,314

 

Other long-term liabilities

 

 

13,366

 

 

 

(1,945

)

Net cash used in operating activities

 

 

(99,783

)

 

 

(19,115

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for acquisitions, net of cash acquired

 

 

(963

)

 

 

(35,214

)

Purchases of property and equipment

 

 

(58,673

)

 

 

(32,261

)

Cash paid for other acquisition

 

 

-

 

 

 

(15,727

)

Proceeds from sale of plant, property and equipment

 

 

255

 

 

 

-

 

Cash (paid) received on deposits, net

 

 

1,699

 

 

 

(1,402

)

Cash for loan under Cannascend and Corsa Verde agreements

 

 

-

 

 

 

(281

)

Net cash used in investing activities

 

 

(57,682

)

 

 

(84,885

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of debt

 

 

153,250

 

 

 

74,500

 

Debt issuance costs

 

 

(7,698

)

 

 

(2,980

)

Proceeds from issue of equity

 

 

-

 

 

 

133,559

 

Equity issuance costs

 

 

-

 

 

 

(408

)

Repayment of debt

 

 

(278

)

 

 

-

 

Issuance of Mortgage

 

 

16,500

 

 

 

-

 

Repayment of sellers note

 

 

(1,125

)

 

 

(7,875

)

Payment of lease liabilities

 

 

(2,966

)

 

 

(4,590

)

Exercise of warrants

 

 

425

 

 

 

1,901

 

Taxes paid on equity based compensation

 

 

(401

)

 

 

(2,965

)

Net cash provided by financing activities

 

 

157,707

 

 

 

191,142

 

Net increase (decrease) in cash

 

 

242

 

 

 

87,142

 

Cash and restricted cash at beginning of the period

 

 

82,533

 

 

 

71,969

 

Cash and restricted cash at end of the period

 

 

82,775

 

 

 

159,111

 

Reconciliation of cash and cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

81,440

 

 

 

148,750

 

Restricted cash