Columbia Care Inc. CCHWCCHWCCHWF will acquire fully-integrated multi-state cannabis operator, Green Leaf Medical.
The two companies entered a definitive agreement worth $240 million and consisting of $45 million payable in cash and $195 million payable via issuance of 43.9 million common shares of Columbia Care, with the potential for extra performance-based milestone payments in 2022 and 2023.
The transaction should be finalized in the summer, after which the complete management team of Green Leaf will be kept, and its CEO and Co-Founder Phillip Goldberg will become a member of Columbia Care’s Board of Directors.
With this transaction, the company will become one of the biggest cannabis operators in Pennsylvania, Maryland, Ohio and Virginia.
Furthermore, it will obtain around 400,000 sq. ft. of cultivation and production capacity, four running dispensaries, and six undeveloped ones. In Pennsylvania and Maryland, the company will be vertically-integrated.
“This combination affirms Columbia Care’s position as one of the largest cultivators, manufacturers and retailers in four key states - PA, VA, OH and MD - three of which are expected to convert from medical to adult use in the next 24 months,” said Nicholas Vita, CEO of Columbia Care.
“Green Leaf complements our retail footprint and brings wholesale leadership through which we can drive our portfolio of brands and unique products. The transaction is immediately accretive to gross margin, Adjusted EBITDA and Cash Flow from Operations."
Philip Goldberg, Green Leaf’s CEO and Co-Founder, stated, "Columbia Care is the ideal partner to take Green Leaf through its next phase of growth."
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us September 13-14, 2022 at The Palmer House in Chicago, IL.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.