Columbia Care Has Triple-Digit Growth After Launch of Adult Use Sales in Illinois and Announces Partnerships with Local Social Equity Groups

January 6, 2020

Average daily sales more than double while total transactions more
than triple compared to December 2019 daily averages

The Company has also joined with Illinois social equity groups, The
Green Room Social Equity Partners LLC and Malcolm Partners LLC, as a
minority partner

NEW YORK–(BUSINESS WIRE)–
Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia
Care” or the “Company”), one of the largest fully integrated operators
in the global cannabis industry with licenses across the US and EU,
today provided an update on its Illinois operations, including initial
results from adult use cannabis sales at its Chicago dispensary as well
as its status as a minority partner in both The Green Room Social Equity
Partners LLC and Malcolm Partners LLC.

Columbia Care was one of the first movers in Illinois’ historic first
day of adult use cannabis sales on January 1, 2020 with hundreds of
customers queuing up outside its Chicago dispensary hours before opening
in order to participate in this momentous occasion. During the first
four days of adult use sales, the Company’s Chicago dispensary
experienced an average daily increase of more than 260% in transactions
and more than 100% in revenue compared to its December 2019 daily
averages. The average historic sequential month over month increase in
revenue was approximately 10% for the prior several periods. Adult use
sales exceeded medical sales by a ratio of seven to one with an average
basket size of approximately $81 per purchase as compared to $110 in the
medical program.

“We are off to a great start in Illinois with initial results exceeding
our expectations based on our experience in other markets that have
converted from medical only to adult use. We believe the long-term
impact on revenue to be three to four times prior medical-only levels.
With the opening of our second Chicago location later this year
leveraging our recently upgraded cultivation, manufacturing and
packaging facility in Aurora, we are well positioned to meet increased
demand for quality cannabis products, including flower, through both the
wholesale and direct to consumer retail channels,” said Nicholas Vita,
chief executive officer of Columbia Care. “As more of our markets
prepare to convert to adult use, Columbia Care has rapidly added
operational scale in order to create sustainable margin and market share
advantages necessary for accelerating our pathway to profitability.
Along with our other 15 markets in the US, Illinois is going to be a
terrific performer and we look forward to expanding the availability of
our innovative products and services to a wider audience as we support
them on their wellness journey.”

Columbia Care has also joined The Green Room Social Equity Partners LLC
and Malcolm Partners LLC as a minority partner. Both groups qualify as
social equity applicants in the Illinois new licensing process, being
owned by partners with strong ties to their communities as well as the
cannabis industry, with an intention of growing their own cannabis
businesses. Together with Columbia Care, each partner has submitted 10
applications for single adult use dispensary permits across Illinois.
All applications include thoughtful diversity and community engagement
plans, including proposed partnerships with civil rights organizations,
as well as a community advisory board with key local community members
and corporate pledges for donations to local non-profit organizations
focused on promoting social justice.

Mr. Vita added, “We are proud to partner with The Green Room and Malcolm
Partners, who share our commitment to re-investing in those who have
been most impacted by prior cannabis policies. Through the combination
of their respective visions to build successful cannabis businesses
while giving back to their communities and Columbia Care’s global
industry expertise, we look forward to further disrupting the Illinois
market together with these outstanding groups.”

For more information about Columbia Care’s Chicago dispensary, including
a menu of available products and hours of operation, please visit https://col-care.com/location/chicago/.

About Columbia Care Inc.

Columbia Care Inc. is one of the largest fully integrated operators in
the global medical cannabis industry with licenses in 16 jurisdictions
in the US and the EU. With over 1.4 million in sales transactions since
its inception, Columbia Care is a patient-centered organization setting
the standard for compassion, professionalism, quality, caring and
innovation in cannabis, working in collaboration with some of the most
renowned and innovative teaching hospitals and medical centers in the
world. The Company is committed to providing the type of education and
transparency patients deserve and quality of product that clinicians
expect. For more information on Columbia Care, please visit www.col-care.com.

Caution Concerning Forward-Looking Statements

This press release contains certain statements that constitute
forward-looking information within the meaning of applicable securities
laws (“forward-looking statements”). Statements concerning Columbia
Care’s objectives, goals, strategies, priorities, intentions, plans,
beliefs, expectations and estimates, and the business, operations,
financial performance and condition of Columbia Care are forward-looking
statements. The words “believe”, “expect”, “anticipate”, “estimate”,
“intend”, “may”, “will”, “would”, “could”, “should”, “continue”, “plan”,
“goal”, “objective”, and similar expressions and the negative of such
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying
words.

Certain material factors and assumptions were applied in providing these
forward-looking statements. Forward-looking information involves
numerous assumptions, including the ability of the Company to obtain
certain third party consents, permits and approvals; the ability of
Columbia Care to meet its dispensary targets, including the ability to
negotiate additional lease arrangements satisfactory to the Company; the
ability of the Company to complete all planned construction in a timely
manner; and the ability of the Company to identify and attract qualified
staff. Projections may be impacted by macroeconomic factors, in addition
to other factors not controllable by the Company. Columbia Care has also
made certain general industry assumptions in the preparation of such
forward-looking statements. Management believes that the expectations
reflected in forward-looking statements are based upon reasonable
assumptions; however, Management can give no assurance that actual
results will be consistent with these forward-looking statements. Not
all factors which affect the forward-looking information are known, and
actual results may vary from the projected results in a material respect
and may be above or below the forward-looking information presented in a
material respect.

Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Columbia Care’s actual
results, performance or achievements, or developments in its industry,
to differ materially from the anticipated results, performance,
achievements or developments expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. When considering these forward-looking statements, readers
should keep in mind the risk factors and other cautionary statements in
Columbia Care’s final prospectus dated March 21, 2019 (the “Prospectus”)
and filed with the applicable Canadian securities regulatory authorities
on SEDAR at www.sedar.com.
The risk factors and other factors noted in the Prospectus could cause
actual events or results to differ materially from those described in
any forward-looking information. Forward-looking statements are based on
management’s current plans, estimates, projections, beliefs and
opinions, and Columbia Care does not undertake any obligation to update
forward-looking statements should assumptions related to these plans,
estimates, projections, beliefs and opinions change except as required
by applicable securities laws. All of the forward-looking statements
made in this press release are qualified by these cautionary statements
and other cautionary statements or factors contained herein, and there
can be no assurance that the actual results or developments will be
realized or, even if substantially realized, that they will have the
expected consequences to, or effects on, Columbia Care.

Investor Contact:
Gary F. Santo, Jr.
Investor Relations
+1.212.271.0915
ir@col-care.com

Media
Contact:

Josephine Belluardo, Ph.D.
LifeSci Public
Relations
+1.646.751.4361
jo@lifescipublicrelations.com

Source: Columbia Care Inc.

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