PRESS RELEASE

Incremental US$15.7 Million in Senior Secured Convertible Notes and Additional US$4.0 Million in Senior Secured Term Debt Will Exceed US$50.0 Million Target When Combined with First $34.4 Million Tranche

Additional Capital Enhances Company’s Cash Position and Bolsters Financial Flexibility in Advance of Expected Transition to Positive Adjusted EBITDA in 2H 2020

NEW YORK–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) as we speak introduced the anticipated completion of the second tranche of its beforehand introduced US$50.Zero million financing with the providing of an mixture principal quantity of US$15.7 million in 5.00% senior secured convertible notes due 2023 (the “Convertible Notes”). US$12.eight million of escrowed funds are anticipated to shut on or by June 22, 2020 with the remaining binding commitments closing in early July. The Convertible Notes may be exchanged into widespread shares of the Company at a beforehand negotiated value of C$3.79, representing a 20% premium to the closing quantity weighted common value as of June 1, 2020. The Company additionally introduced binding commitments of an extra US$4.Zero million in time period debt, supplementing its preliminary US$34.Four million tranche which closed on May 14, 2020.

Upon the closing of the extra $19.7 million, the combination financed quantity of US$54.1 million will exceed Columbia Care’s beforehand introduced goal of US$50 million. This quantity excludes proceeds from the Company’s anticipated second and third sale leaseback transactions, anticipated to shut in the third quarter. Also excluded is the Company’s beforehand introduced sale of a 10% minority curiosity in its non-US enterprise to Avalon Pharmaceuticals for US$11 million which closed earlier this 12 months and is funding in tranches by the tip of the third quarter.

“Columbia Care continues to demonstrate its ability to access the institutional capital markets at attractive terms despite incredibly challenging macroeconomic conditions, validating the confidence that institutional investors have in our company and team,” stated Nicholas Vita, CEO of Columbia Care. “Since the start of 2020, including these financings, Columbia Care has raised over US$65 million of new capital, minimizing dilution, enhancing our liquidity position, de-risking our outlook and enabling us to execute on our growth strategy. We will continue to allocate resources to our highest performing markets where opportunities exist to drive incremental profitability and improve our position as the leading nationwide operator. Columbia Care is committed to being a disciplined steward of capital and remains focused on creating shareholder value as we transition to adjusted EBITDA positive in 2020.”

This announcement is neither a suggestion to promote nor a solicitation of a suggestion to purchase any of these securities and shall not represent a suggestion, solicitation, or sale in any jurisdiction in which such supply, solicitation or sale is illegal.

About Columbia Care Inc.
Columbia Care is one of the most important and most skilled cultivators, producers and suppliers of medical and grownup use hashish merchandise and associated providers with licenses in 18 US jurisdictions1 and the EU. Columbia Care has accomplished greater than 1.eight million gross sales transactions since inception and dealing in collaboration with famend and modern instructing hospitals and medical facilities globally, continues to be a patient-centered well being and wellness firm setting the usual for compassion, professionalism, high quality, care and innovation in the quickly increasing hashish business. For extra data on Columbia Care, please go to www.col-care.com.

Caution Concerning Forward-Looking Statements
This press launch accommodates sure statements that represent forward-looking data throughout the that means of relevant securities legal guidelines (“forward-looking statements”). Statements regarding Columbia Care’s goals, objectives, methods, priorities, intentions, plans, beliefs, expectations and estimates, and the enterprise, operations, monetary efficiency and situation of Columbia Care are forward-looking statements. The phrases “expect”, “anticipate”, “may”, “continue”, and related expressions and the unfavourable of such expressions are supposed to establish forward-looking statements, though not all forward-looking statements include these figuring out phrases. Certain materials components and assumptions have been utilized in offering these forward-looking statements. Forward-looking data includes quite a few assumptions, together with assumptions on expectations for the potential advantages of any transactions together with the second and third sale leaseback transactions; statements regarding the enterprise and future actions of, and developments associated to, the Company after the date of this press launch; expectations that deliberate transactions will probably be accomplished as beforehand introduced; expectations of market dimension and development in the U.S. and the states in which the Company operates; expectations for different financial, enterprise, regulatory and/or aggressive components associated to the Company or the hashish business typically; and different occasions or situations which will happen in the longer term. Forward-looking statements could relate to future monetary situations, outcomes of operations, plans, goals, efficiency or enterprise developments. These statements converse solely as on the date they’re made and are primarily based on data at the moment out there and on the then present expectations. Holders of securities of the Company are cautioned that forward-looking statements aren’t primarily based on historic info however as a substitute are primarily based on affordable assumptions and estimates of administration of the Company on the time they have been supplied or made and contain recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of the Company, as relevant, to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements, together with, however not restricted to, dangers and uncertainties associated to: the out there funds of the Company and the anticipated use of such funds; the provision of financing alternatives; authorized and regulatory dangers inherent in the hashish business; dangers related to financial situations, dependence on administration and foreign money danger; dangers regarding U.S. regulatory panorama and enforcement associated to hashish, together with political dangers; dangers regarding anti-money laundering legal guidelines and regulation; different governmental and environmental regulation; public opinion and notion of the hashish business; dangers associated to contracts with third-party service suppliers; dangers associated to the enforceability of contracts; reliance on the experience and judgment of senior administration of the Company, and talent to retain such senior administration; dangers associated to proprietary mental property and potential infringement by third events; dangers regarding the administration of development; rising competitors in the business; dangers inherent in an agricultural enterprise; dangers regarding power prices; dangers related to hashish merchandise manufactured for human consumption together with potential product remembers; reliance on key inputs, suppliers and expert labor; cybersecurity dangers; capability and constraints on advertising merchandise; fraudulent exercise by staff, contractors and consultants; tax and insurance coverage associated dangers; dangers associated to the economic system typically; danger of litigation; conflicts of curiosity; dangers regarding sure cures being restricted and the problem of enforcement of judgments and impact service exterior of Canada; dangers associated to future acquisitions or tendencies; gross sales by current shareholders; restricted analysis and knowledge regarding hashish; in addition to these danger components mentioned underneath “Risk Factors” in Columbia Care’s Annual Information Form dated March 31, 2020 and filed with the relevant Canadian securities regulatory authorities on SEDAR at www.sedar.com, in the Company’s Annual Information Form, and as described every now and then in paperwork filed by the Company with Canadian securities regulatory authorities.

The goal of forward-looking statements is to offer the reader with an outline of administration’s expectations, and such forward-looking statements will not be acceptable for another goal. In specific, however with out limiting the foregoing, disclosure in this press launch in addition to statements relating to the Company’s goals, plans and objectives, together with future working outcomes and financial efficiency could make reference to or contain forward-looking statements. Although the Company believes that the expectations mirrored in such forward-looking statements are affordable, it can provide no assurance that such expectations will show to have been right. A quantity of components might trigger precise occasions, efficiency or outcomes to vary materially from what’s projected in the forward-looking statements. No undue reliance ought to be positioned on forward-looking statements contained in this press launch. Such forward-looking statements are made as of the date of this press launch. Columbia Care undertakes no obligation to replace or revise any forward-looking statements, whether or not consequently of new data, future occasions or in any other case, besides as required by relevant regulation. The Company’s forward-looking statements are expressly certified in their entirety by this cautionary assertion.

This information launch accommodates future-oriented monetary data and monetary outlook data (collectively, “FOFI”) about Columbia Care’s potential outcomes of operations, together with a transition to optimistic EBITDA in 2H, 2020, all of that are topic to the identical assumptions, danger components, limitations, and {qualifications} as set forth in the above paragraph. FOFI contained in this doc was authorised by administration as of the date of this doc and was supplied for the aim of offering additional details about Columbia Care’s future enterprise operations. Columbia Care disclaims any intention or obligation to replace or revise any FOFI contained in this doc, whether or not as a result of of new data, future occasions or in any other case, except required pursuant to relevant regulation. Readers are cautioned that the FOFI contained in this doc shouldn’t be used for functions apart from for which it’s disclosed herein.


1Includes Colorado, topic to profitable completion of the acquisition of The Green Solution and W. Virginia industrial hemp cultivation license.

Contact

Investor Contact:
Gary F. Santo, Jr.
Investor Relations
+1.212.271.0915
[email protected]

Media Contact:
Gabriella Velez
5WPR
[email protected]



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