Below is a complimentary excerpt from an institutional research note written by our Cannabis analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email email@example.com
Colorado has been experiencing dramatic swings in weather this week. On Monday, temperatures were around the low-to-mid 90s with wildfires breaking out across the state.
Over the weekend, Denver had record-breaking temperatures of 101 and 97 degrees on Saturday and Sunday, respectively. By Tuesday, a sudden cold front moved through the state, bringing snow accumulation upwards of six inches in some places and dropping to freezing temperatures.
For outdoor cannabis and hemp farmers, the 70+ degree temperature swing has brought significant crop damage. In interviews with Marijuana Business Daily, cannabis growers spoke on the impact of the summer cold snap.
A PotCo outdoor marijuana farm outside Pueblo estimated that their business losses could reach $4M-$5M – much of the canopy of ~7,000 plants trellised together collapsed under the heavy snow/rainfall.
Lightshade, a Denver-based operator, had employees working around the clock to maintain the climate controls for their four indoor grows and greenhouse with 20,000 square feet of growing space.
Following Columbia Care’s completed acquisition of The Green Solution on September 1st, the MSO became the largest operator in the Colorado market. The Green Solution has 23 dispensaries in the state and at least 250,000 sq. ft. of indoor grow and 140 acres of outdoor grow.
Whether this will materially impact Columbia Care’s goal of transitioning to positive Adj. EBITDA in Q3 is unclear.