CCHW stock rose 5.7% on Wednesday after Columbia Care (CCHW.NE) (OTCQX:CCHWF) announced its second-quarter revenue of $19.3 million USD, an increase of 50% from Q1 and 102% from the same period last year.
CannTrust Scandal Fallout
CCHW stock hit a year low on July 15, as the cannabis industry faced the fallout from CannTrust’s (TSX:TRST) (NYSE:CTST) regulatory infringement and Bruce Linton’s dismissal as CEO from Canopy Growth (TSX:WEED) (NYSE:CGC). CCHW stock has gradually recovered since, however, reaching its strongest position since then on Monday.
“We are pleased to deliver revenue growth of over 100% year-over-year and over 50% sequentially. With the majority of our facilities and markets in development, as well as several important product and service launches anticipated in the third and fourth quarters, we look forward to the future,” said Nicholas Vita, Chief Executive Officer of Columbia Care.
Columbia Care is also the first medicinal cannabis company to offer a credit payment option in the US, which is predicted to increase the company’s sales. Following the release of this product, the company stated that it “experienced an 18 percent increase in average basket size for in-store purchases using the CNC Card over other forms of payment, in addition to significant increases in repeat visits and an increased utilization rate for home delivery and automatic fulfillment.”
CCHW stock experienced its biggest spike of the year following the unveiling of this credit payment option, before the CannTrust scandal dragged share prices across the industry down.
Columbia Care Inc has licenses in 15 jurisdictions across the US and the EU and is one of the largest fully integrated operators in the global medical cannabis industry. Despite posting strong revenue growth in Q2, CCHW also posted a net loss of $33.7 million USD compared to $4.2 million USD for Q2 last year, which is reflective of an increase in non-cash expenses and the company’s investment in future growth.
Featured image: DepositPhotos © Fotofabrika