Columbia Care completes $ 42 million acquisition of Medicine Man, Colorado – New Cannabis Ventures
Columbia Care Completes Acquisition of Colorado-based Medicine Man; Strengthens its leadership position in the world’s second largest cannabis market
- Adds four Denver-Metro retail outlets and 35,000 square foot indoor grow facility
- Immediately accelerate Columbia Care’s adjusted EBITDA and operating cash flow
- Solidifies Columbia Care’s Position as the Leading Retailer, Grower and Manufacturer in Colorado
NEW YORK, November 1, 2021– (BUSINESS WIRE) –Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”), one of largest and most experienced cannabis growers, manufacturers and distributors in the United States, today announced that it has completed the acquisition of Medicine Man, a leading, vertically integrated cannabis company based in the United States. Colorado, which has served the Denver metro area since 2009.
The total initial consideration was $ 42.0 million, including $ 8.4 million in cash and $ 33.6 million in shares, with the possibility of an additional milestone payment based on 2021 performance. The transaction is immediately accretive to Adjusted EBITDA and operating cash flows. The initial consideration of $ 42.0 million represents a multiple of approximately 4.5 times the EBITDA forecast for 2021.
As the second largest cannabis market in the world, Colorado has become a global indicator for adult use programs and continues to show strong organic growth. The acquisition of Medicine Man strengthens our leadership position in the state by combining us with a recognized operator that has consistently outperformed the Colorado market since its inception.
Nicholas Vita, CEO of Columbia Care
We are grateful to the cities of Aurora, Denver and Thornton, and the State of Colorado, for their support, and to the team at Medicine Man who have been great to work with throughout this process. Our vision and values are aligned, and we look forward to expanding our Columbia Care family with the addition of those who have made Medicine Man such a successful business.
The acquisition adds a culture facility and four dispensaries to Columbia Care’s operations in Colorado, including the location of Medicine Man Longmont, which is expected to close in the first quarter of 2022. Columbia Care’s Colorado footprint will now total 26 dispensaries and six growing and manufacturing facilities, including those under the The Green Solution brand.
This marks the next step in the evolution of Medicine Man from an ambitious family business to part of a blue chip operation. Our experience with Columbia Care through this process reinforced the reasons we decided to partner with them.
Sally Vander Veer, CEO of Medicine Man
The team has been amazing, fair and efficient over the past few months. Our goal now is to implement their vision and bring as much value as possible to Operation Columbia Care.
Foley Hoag LLP is legal counsel for Columbia Care. Right Side Advisory Services acts as financial advisor to Medicine Man. Husch Blackwell LLP is acting as legal counsel to Medicine Man.
About Columbia Care
Columbia Care is one of the largest and most experienced cultivators, manufacturers and suppliers of cannabis products and related services, with licenses in 18 US jurisdictions and the EU. Columbia Care operates 130 facilities, including 99 dispensaries and 31 growing and manufacturing facilities, including those under development. Columbia Care is one of the premier providers of medical cannabis in the United States and now offers cutting-edge products and services to both the medical and adult markets. In 2021, the company launched Cannabist, its new retail brand, creating a nationwide network of dispensaries that operate proprietary technology platforms. The company offers products including flowers, edibles, oils and tablets, and manufactures popular brands such as Seed & Strain, Triple Seven, gLeaf, Classix, Plant Sugar, Press, Amber and Platinum Label CBD. For more information on Columbia Care, please visit www.col-care.com.
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