Cannabis MSO Columbia Care raises $74.5 million in private placement

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Multistate marijuana operator Columbia Care has closed a private payment of convertible notes to raise $74.5 million.

The senior secured notes carry a 6% interest rate, and mature on June 29, 2025, unless they are redeemed, repurchased or converted earlier than that.

Each $1,000 worth of notes can be converted to 154 common shares of Columbia Care, representing a premium of about 25% over the shares’ closing price on June 17.

New York-based Columbia Care can redeem the notes at par on or after June 29, 2023, as long as its shares are worth more than 120% of the conversion price.

“The net proceeds from the offering will be used for working capital and general corporate purposes,” Columbia Care said in a news release.

Earlier this month, Columbia Care announced a deal to acquire vertically integrated Colorado marijuana company Medicine Man for $42 million.

The company also announced a deal to acquire a New York cultivation site in April.

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