The Cannabist Company announces the agreement to sell all of its Virginia assets to an affiliate of Millstreet following a go-shop process.
The transaction includes 5 active retail locations, 1 additional retail location in development, and approximately 82,000 square feet of cultivation and production capacity in the Richmond region.
The total consideration for the sale is $130 million, subject to adjustment.
Transaction Highlights
Buyer will purchase all issued equity interests of Green Leaf Virginia for $130 million, with $117.5 million payable in cash at closing and the remaining $12.5 million to be escrowed.
Regulatory Approvals
The transaction is subject to various closing conditions including regulatory approvals, with shareholder approvals not required.
Impact on Notes
Proceeds from the transaction will be used to redeem the company's Senior Secured Notes due December 31, 2028.
- The termination of the agreement with Curaleaf and the agreement to sell assets to Millstreet mark significant strategic shifts for The Cannabist Company.
- The sale of Virginia assets will impact the company's retail and production footprint, providing funds for further business development.
- The transaction demonstrates the company's focus on optimizing its asset portfolio and enhancing shareholder value.
The Cannabist Company's decision to sell its Virginia assets and terminate the agreement with Curaleaf reflects a strategic realignment towards growth opportunities.