Columbia Care to close on major deal to acquire Colorado marijuana retailer

Be at the forefront of cannabis and psychedelics science and innovation. Register today & Save $200 on tickets to The Emerald Conference by MJBiz Science, April 1-3 in San Diego.

(This story has been updated to reflect the total number of shares of stock involved in the deal.)

Multistate operator Columbia Care is set to close on a full-stock deal to acquire major Denver-based vertically integrated cannabis company The Green Solution, which would significantly expand the New York-based MSO’s presence nationwide.

The deal, expected to close Sept. 1, would net Columbia Care 23 retail stores, six cultivation facilities and one manufacturing operation that are expected to generate about $88.5 million in revenue this year, according to a news release.

The transaction increases Columbia Care’s footprint to 95 facilities that are open or under development, including 73 dispensaries and 22 cultivation and manufacturing locations. Columbia Care’s footprint now will cover 18 jurisdictions in the United States and the European Union.

Although the terms of the transaction weren’t disclosed Wednesday, when the deal was announced in late 2019, the acquisition was valued at $140 million with 79%, or $110 million, of the consideration to be paid in Columbia Care equity.

At the time, Marijuana Business Daily‘s Investor Intelligence team posited that the consideration “could be a fixed $110 million amount, which would mean the number of shares has risen to 81 million at $1.36 from 35 million at $3.15 at the announcement, or it could just be 35 million shares, or something in between.”

A Columbia Care spokesman told MJBizDaily on Thursday the total number of shares is 33.2 million.

Many of The Green Solution (TSG) dispensaries are located around Denver and in tourist areas.

According to the release, TSG had unaudited revenue through July 2020 of $52.7 million, a year-over-year increase of 29% compared to 2019.

Once the acquisition closes, Columbia Care plans to:

  • Ramp up wholesale operations.
  • Implement additional manufacturing infrastructure.
  • Launch its own medical, health and wellness-focused products.
  • Expand outdoor cultivation to produce more low-cost cannabis.
  • Grow the retail side.

“This transaction aligned well with our national strategy to be the market leader in each of our key markets while adding a portfolio of brands and products to our suite of adult-use offerings across the country,” said Nicholas Vita, CEO of Columbia Care.

Meanwhile, according to the release, a Columbia Care affiliate recently received permission to pursue a marijuana hospitality business license in Adams County, site of one of the first consumption lounges in Colorado.