Columbia Care Completes Acquisition of Project Cannabis
NEW YORK, December 02, 2020–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”) announced that it has completed its acquisition of Project Cannabis, a leading cannabis cultivator, wholesaler and retailer based in Los Angeles, California.
Total transaction consideration includes approximately $52.5 million in Columbia Care stock and an additional consideration of $16.5 million anticipated to be paid to the sellers from the proceeds of a subsequent sale of Project Cannabis’ real estate assets1.
As both a shareholder and Columbia Care’s CEO, I am delighted to announce the completion of our acquisition of Project Cannabis. This combination enables us to optimize both profitability and scale as we deepen our presence in the world’s largest cannabis market. The transaction is immediately accretive to adjusted EBITDA and cash flow, and California is now one of our top five markets by both revenue and profitability.
Nicholas Vita, CEO of Columbia Care
With Project Cannabis’ premium and exotic strains, nationally recognized brand portfolio and extensive distribution network, we will further enhance the breadth and quality of our product offerings and reach a significant portion of California’s addressable market. We look forward to driving additional operational and financial synergies with Project Cannabis as we leverage their adult-use and wholesaling expertise across the rest of our US markets.
Project Cannabis’ fully integrated portfolio includes four dispensaries and one 36,000ft2 state-of-the-art cultivation facility. To begin realizing margin synergies, Columbia Care will start manufacturing Project Cannabis’ extracted products and concentrates at the Company’s 45,000ft2 manufacturing facility in San Diego. Through the retail channel, Project Cannabis will cross-sell Columbia Care’s medically-focused and new adult use product lines—along with its existing brand portfolio—leveraging its long-standing distribution network of over 100 dispensaries across California.
For additional information regarding the transaction, please refer to Columbia Care’s press release issued on September 8, 2020, or visit the presentations section of the investors’ website at www.ir.col-care.com.
About Columbia Care
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult use cannabis products and related services with licenses in 18 US jurisdictions and the EU. Columbia Care currently operates 100 facilities including 76 dispensaries and 24 cultivation and manufacturing facilities. Columbia Care is one of the original providers of medical cannabis in the United States, and continues to deliver an industry-leading, patient-centered medicinal cannabis operation that has quickly expanded into the adult use market as a premier operator. The company currently offers products spanning flower, edibles, oils, and tablets, and manufactures popular brands including Amber and Platinum Label CBD. With more than four million sales transactions since its inception in 2012, Columbia Care is known for setting the standard for compassion, professionalism, quality, care, and innovation in the rapidly expanding cannabis industry. For more information on Columbia Care, please visit www.col-care.com.
1 Total consideration for Project Cannabis is $69 million less the value of the Project Cannabis real estate assets, estimated to be between $12 million and $17 million resulting in Columbia Care issuing shares worth $52 million – $57 million.