Canadian cannabis firm Captor pays $6M to acquire a fourth California dispensary

Captor Capital, a vertically integrated Canadian marijuana company, acquired Chai Cannabis, a medical and recreational cannabis store in Santa Cruz, California, for roughly $6 million.

The acquisition adds a fourth California retail shop to Captor’s investment portfolio, which includes two MedMen-branded dispensaries, according to a news release.

Chai also possesses a license permitting cannabis delivery in the greater Santa Cruz area on the central California coast.

Chai opened as a medical dispensary in 2014 and posted unaudited revenues of $8.4 million in 2017. Captor said the acquisition “is expected to materially increase” its total revenue from retail cannabis investments.

Here are the details of the acquisition:

• Captor paid $4.4 million in cash at the closing.
• The rest of the $6 million was paid in the form of a promissory note and Captor stock.

Captor, based in Toronto, trades on the Canadian Securities Exchange under the ticker symbol CPTR.