New York Cannabis Giant Provides Cash For Note Redemption: Here's What You Need To Know

Cannabist Company Holdings Inc. CBST CBSTF 3LP said on Monday that it delivered a notice of partial redemption to the holders of its outstanding 13% senior secured notes due May 14, 2024.

The Details

The notice provides that the New York-based company will, on Oct. 23, 2023, redeem $25 million of the total $38.2 million principal amount of the outstanding notes.

On Oct. 23, holders of notes will have a portion of their 13% notes, in denominations of $1,000, redeemed on a pro-rata basis under the terms of the trust indenture between the Cannabist and Odyssey Trust Company dated May 14, 2020.

Holders of redeemed notes will be entitled to receive a payment of $1,010 for each $1,000 principal amount of redeemed notes plus all accrued by unpaid interest up to but excluding Oct. 23.

The Cannabist will satisfy its obligation to pay the holders of redeemed notes the redemption price in cash from funds on hand.

The move comes on the heels of the Sept. 21 closing of a private placement for aggregate gross proceeds of roughly $25 million and a change of its legal name from Columbia Care Inc.

“The rebrand to The Cannabist Company marks an incredibly pivotal moment for us as an organization and speaks to where we are heading,” said Jesse Channon, The Cannabist Company’s chief commercial officer. “As we’ve opened Cannabists across the country, it became clear to us that the ethos behind that retail brand represented our company as a whole — a passion for cannabis that we all share and fuels our work every day.”

CBSTF Price Action

The Cannabist Company's shares traded 0.9167% lower at $0.7728 per share at the time of writing late Monday morning.

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