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Columbia Care Expands To California Via $69M Purchase Of Project Cannabis

September 9, 2020 9:05 am
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Cannabis company Columbia Care Inc. (CSE:CCHW) (OTCQX: CCHWF) which recently closed The Green Solution’s acquisition, opted to purchase Project Cannabis for roughly $69 million.

Under the deal, which the New York-based company inked, Project Cannabis would be “immediately accretive to Columbia Care’s adjusted EBITDA, and cash flow,” Columbia Care’s CEO Nicholas Vita confirmed.

The price tag includes $57 million in Columbia Care stock and roughly $12 million in cash coming from the profits of a sale of Project Cannabis’ real estate assets.

The New York-based company noted Tuesday that the acquisition is scheduled to close in the last quarter of this fiscal year.

Project Cannabis cultivates, wholesales, and retails Triple Seven and Classix. It also operates a 32,000 square feet cultivation facility in Los Angeles.

In addition, it runs three adult-use retail dispensaries in North Hollywood, Downtown Los Angeles, and Studio City, as well as one in San Francisco.

Columbia Care noted it would utilize its San Diego-based 45,000 square feet manufacturing facility to produce and package Project Cannabis’ extracted products and concentrates.

“Project Cannabis perfects our operating model in California, enables us to maintain supply chain continuity, optimize profitability, and gives us the full suite of capabilities, products, and brands needed to be a market leader in the state,” continued Vita.

With its extensive network of more than 100 dispensaries within the state, Project Cannabis would provide Columbia Care with access to the California cannabis market, added Vita.

Project Cannabis EVP Cameron Wald said that joining Columbia Care is a “pivotal next step” in their “growth trajectory.”

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