Columbia Care Completes $ 42 Million Acquisition of Medicine Man, Colorado – New Cannabis Companies

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Columbia Care Completes Acquisition of Colorado-Based Medicine Man; Strengthening the leadership position in the second largest cannabis market in the world
  • Adds four retail locations in Denver Metro and a 35,000-square-foot indoor grow facility
  • Columbia Care’s Adjusted EBITDA and Cash Flow from Operations increased immediately
  • Solidifies Columbia Care’s position as the leading Colorado retailer, grower, and manufacturer

NEW YORK, Nov. 1, 2021 – (BUSINESS WIRE) – Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FWB: 3LP) (“Columbia Care” or the “Company”) of the largest and most experienced breeders, manufacturers, and distributors of cannabis products in the United States, today announced the completion of the acquisition of Medicine Man, a leading vertically integrated Colorado-based cannabis company that has been operating in the Denver area since 2009.

The total upfront payment was $ 42.0 million, comprised of $ 8.4 million in cash and $ 33.6 million in stock, with the potential for an additional milestone payment based on performance in 2021. The transaction has an immediate positive effect on adjusted EBITDA and cash flow from operating activities. The $ 42.0 million upfront payment is a multiple of roughly 4.5 times projected EBITDA for 2021.

As the world’s second largest cannabis market, Colorado has emerged as a global star for adult use programs and continues to show strong organic growth. The Medicine Man acquisition strengthens our position as a leader in the state by partnering with a recognized operator who has consistently performed above average in the Colorado market since its inception.

Nicholas Vita, Columbia Care CEO

We thank the cities of Aurora, Denver, and Thornton, and the state of Colorado for their support, and the Medicine Man team who have been great to work with during this process. Our vision and values ​​align, and we look forward to adding those who have made Medicine Man such a successful company to our Columbia Care family.

This acquisition adds a cultivation facility and four pharmacies to Columbia Care’s Colorado operations, including the Medicine Man Longmont facility, which is expected to close in the first quarter of 2022. Columbia Care’s Colorado presence will now include 26 pharmacies and six cultivation and manufacturing facilities, including this one under the The Green Solution brand.

This marks the next step in Medicine Man’s development from an ambitious family business to part of a best-in-class operation. Our experience with Columbia Care during this process reinforced the reasons we chose to partner with them.

Sally Vander Veer, CEO of Medicine Man

The team has been amazing, fair and efficient over the past few months. Our focus now is on realizing their vision and creating as much value as possible for Columbia Care operations.

Further information on the transaction can be found in the Columbia Care press release dated June 15, 2021 or in the presentation section of the investor website.

advisor

Foley Hoag LLP is serving as legal advisor to Columbia Care. Right Side Advisory Services is serving as financial advisor to Medicine Man. Husch Blackwell LLP is serving as legal advisor to Medicine Man.

About Columbia Care

Columbia Care is one of the largest and most experienced breeders, manufacturers, and providers of cannabis products and related services licensed in 18 US jurisdictions and the EU. Columbia Care operates 130 facilities including 99 pharmacies and 31 cultivation and manufacturing facilities, including those under development. Columbia Care was one of the original medical cannabis suppliers in the United States and now provides industry leading products and services to both the medical and adult markets. In 2021, the company launched Cannabist, its new retail brand, and created a national pharmacy network using proprietary technology platforms. The company offers products made from flowers, edibles, oils and tablets, and makes popular brands such as Seed & Strain, Triple Seven, gLeaf, Classix, Plant Sugar, Press, Amber and Platinum Label CBD. For more information on Columbia Care, please visit www.col-care.com.

Original press release

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Published by NCV Newswire

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