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The Cannabist Company Holdings Inc. CBSTF 3LP announced on Friday that it has entered into a definitive agreement to sell its 40,000-square-foot cultivation facility in Lakeland, Florida, for $11.4 million, payable in cash. The company said $2 million of this consideration is already held in escrow.



Additionally, the New York-based cannabis giant has reached a definitive agreement with MINT Cannabis and Shango, as joint venture partners, to sell all 14 of its Cannabist dispensaries in Florida, along with its cultivation and manufacturing facilities in Alachua and Arcadia. The Cannabist Company will retain one MMTC license, which it plans to divest to a third party at a later time.



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Consideration for the MINT/Shango deal, subject to adjustment, is $5 million. Upon closing, the MINT Shango JV will pay a closing consideration of $3 million in cash and issue a $2 million promissory note. $750k of this consideration is already held in escrow.



See Also: <a href="https://www.benzinga.com/markets/cannabis/24/08/40418144/florida-cannabis-legalization-one-poll-shows-weed-going-legal-in-november-ballot-another-thumbs-">Florida Cannabis Legalization: One Poll Shows Weed Going Legal In November Ballot, Another Thumbs Down</a>



<h3 class="wp-block-heading">Why It Matters</h3>



"We are pleased to announce our definitive agreements to transition our Florida operations over to a leading multistate operator and the MINT Shango JV," David Hart, CEO of The Cannabist Company, said. "This strategic move aligns with our ongoing efforts to build a better business &#8211; rationalizing our footprint and focusing on our growth markets to enhance profitability."



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<h3 class="wp-block-heading">What's Next</h3>



Both transactions under the definitive agreements are subject to closing conditions, including regulatory approvals. Post-closing, MINT Cannabis and Shango are expected to be rebranded to "MINT Cannabis."



After exiting the Florida market, The Cannabist Company's operational footprint will shrink to 13 markets, and further to 12 upon finalizing its exit from Washington, DC.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/07/39871979/floridas-medical-cannabis-market-sees-explosive-growth-ahead-of-november-legalization-ballot">Florida&#8217;s Medical Cannabis Market Sees Explosive Growth Ahead Of November Legalization Ballot</a></li>
</ul>



<h3 class="wp-block-heading">CBSTF Price Action</h3>



The Cannabist Company Holdings' shares traded 6.48% higher at $0.2776 per share at the time of writing on Friday afternoon.

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The Cannabist Company Holdings Inc. (OTCQX: CBSTF) (FSE: 3LP) announced on Friday that it has entered into a definitive agreement with a leading multistate operator to acquire the 40,000-square-foot cultivation facility in Lakeland, Florida for $11.4 million, payable in cash. The company said $2 million of this consideration is already held in escrow. In addition, the New York-based cannabis giant entered into a definitive agreement with MINT Cannabis and Shango, as joint venture partners, to acquire all 14 Cannabist dispensaries in Florida and the company's cultivation and manufacturing facilities in Alachua and Arcadia. The Cannabist Company will retain one MMTC license. Consideration for the MINT/Shango deal, subject to adjustment, is $5 million. Upon closing, the MINT Shango JV will pay a closing consideration of $3 million in cash and issue a $2 million promissory note. $750k of this consideration is already held in escrow.

$16.4M Asset Sale Marks The Cannabist Company's Florida Exit In Streamlining Effort - Cannabist Company Hldgs (OTC:CBSTF)

Jelena Martinovic

Cannabist Company Hldgs

cannabis asset sale

cannabis deal

Florida Cannabis

THE CANNABIST CO HLDG by THE CANNABIST COMPANY HOLDINGS INC.

CBSTF

$16.4M Asset Sale Marks The Cannabist Company's Florida Exit In Streamlining Effort

Cannabist Company Holdings Inc

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