The Cannabist Company said it has closed the sale of its Pennsylvania affiliate that owns three medical dispensaries to VP Investment, which is comprised of principals from a privately-held dispensary operator in the state.
VP Holdings acquired Columbia Care Pennsylvania, from Columbia Care via Equity Purchase Agreement for approximately $10 million in cash paid at closing.
The sale will include a concurrent supply agreement with VP Holdings for products produced by Cannabist’s grow/processing affiliate, Green Leaf Medicals. This strategic Pennsylvania transaction accelerates Cannabist's wholesale cultivation presence by boosting its grow-processor facility located in Saxton, Pennsylvania.
“This Pennsylvania Transaction is a clear example of executing on our strategic plan to simplify our business and optimize existing assets, while delivering immediate financial benefits,” said David Hart, CEO of The Cannabist Company. “We’ve taken a proactive and thoughtful step that strengthens our balance sheet, bolsters liquidity, and enhances our operational focus. By divesting our retail footprint in Pennsylvania for all cash and entering into a meaningful wholesale agreement, we are now better positioned to optimize our best-in-class Saxton cultivation facility and expand distribution of our high-quality products to patients across the state. This transaction positions us to better capitalize on the current medical landscape and future opportunities in a potential adult-use market.”
