New York-based The Cannabist Co. is selling all 14 of its Florida medical marijuana dispensaries and three cultivation facilities for $16.4 million in two separate deals involving three multistate operators.
In one transaction, an unidentified MSO is paying $11.4 million for The Cannabist’s 40,000-square-foot cultivation facility in Lakeland, according to a Friday news release.
That deal, which is “subject to adjustment,” is payable in cash, though $2 million of the consideration is already in escrow, the release notes.
A spokesperson for The Cannabist told MJBizDaily via email that “we are not disclosing the MSO at this time.”
In the other transaction, a joint venture of Arizona-based Mint Cannabis and California-headquartered Shango will pay $5 million for The Cannabist’s 14 dispensaries.
The deal includes the New York-headquartered MSO’s medical marijuana treatment center (MMTC) licenses and its cultivation and manufacturing operations in Alachua and Arcadia.
The Cannabist’s dispensary locations are expected to be rebranded to Mint Cannabis after the deal closes.
“This strategic move aligns with our ongoing efforts to build a better business – rationalizing our footprint and focusing on our growth markets to enhance profitability,” The Cannabist CEO David Hart said in a statement.
“As previously disclosed, our Florida assets are better suited for other operators’ portfolios, allowing us to eliminate loss-making operations that represent less than 5% of revenue, while bringing in non-dilutive capital to further bolster the balance sheet.”
After leaving Florida, The Cannabist Co. will continue to operate in 13 markets until it completes its exit from Washington, D.C.
The Cannabist Co., formerly Columbia Care, operates 95 facilities across the U.S., including 73 stores and 22 manufacturing plants.
Shares of The Cannabist Co. trade as CBSTF on the Cboe Canada exchange and the over-the-counter markets.
Arizona-based Mint Cannabis and California-headquartered Shango are privately held companies.
