Marijuana MSO Columbia Care closes $185 million notes offering

Marijuana multistate company Columbia Care closed a private placement of senior notes worth $185 million.

The senior secured debt, due in 2026, carries an interest rate of 9.5%.

In connection with the notes offering, Columbia Care is exchanging roughly $31.75 million of 13% notes due in 2023 for the new notes for aggregate gross proceeds of $153.25 million.

Proceeds will be used “to fund capital expenditures, strategic acquisitions and for general corporate purposes,” according to a Thursday news release.

“This non-dilutive financing provides Columbia Care with additional flexibility to continue executing on our strategic growth initiatives, especially in markets like New Jersey, New York and Virginia,” CEO Nicholas Vita said in a statement.

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Columbia Care issued convertible notes worth $74.5 million in mid-2021.

The company acquired Colorado cannabis company Medicine Man last year along with a marijuana cultivation site in its home state of New York and a San Diego marijuana retailer.

Columbia Care shares trade as CCHW on the Canadian Securities Exchange and NEO Exchange.