The Cannabist Co. Enters $16.4 Million Definitive Agreements for Florida Assets

NEW YORK, Aug. 23, 2024 – PRESS RELEASE – The Cannabist Co. Holdings Inc., one of the most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., announced that it entered into a definitive agreement with a leading multistate operator to acquire the Lakeland cultivation facility. Additionally, The Cannabist Co. entered into a definitive agreement with MINT Cannabis and Shango, as joint venture partners (the “MINT Shango JV”), to acquire all 14 Cannabist dispensaries in Florida and the company’s cultivation and manufacturing facilities in Alachua and Arcadia. MINT Cannabis and Shango are leading, privately held multistate dispensary operators and cultivators that will bring strong operational expertise, award-winning genetics and innovative customer experience to these dispensary locations, which post-closing are expected to be rebranded to “MINT Cannabis.”

RELATED: Cannabist Co. Exiting Florida Cannabis Market After $19M Loss in 2023

Lakeland Transaction Highlights

• Consideration for the Lakeland transaction, subject to adjustment, is $11.4 million, payable in cash. $2 million of this consideration is already held in escrow.
• Transaction includes a more than 40,000-square-foot cultivation facility in Lakeland.

MINT/Shango Transaction Highlights

• Consideration for the MINT/Shango transaction, subject to adjustment, is $5 million. Upon closing, the MINT Shango JV will pay closing consideration of $3 million in cash and issue a $2 million promissory note. $750,000 of this consideration is already held in escrow.
• Additionally, the MINT Shango JV will transfer to the company all outstanding equity interest in its MMTC license entity, which the company expects to divest to an additional third party.
• Transaction includes:
• 14 Cannabist dispensaries
• Two cultivation and manufacturing facilities
• The company’s MMTC license

The Cannabist Company Management Commentary

“We are pleased to announce our definitive agreements to transition our Florida operations over to a leading multistate operator and the MINT Shango JV,” The Cannabist Co. CEO David Hart said. “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. 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 nondilutive capital to further bolster the balance sheet. We are proud of the Cannabist locations we’ve developed over the last few years and are grateful for the commitment of our entire Florida team.”

Closing of the transactions pursuant to the definitive agreements is subject to closing conditions, including regulatory approvals. Upon exit of the Florida market, the Cannabist Co.’s operational footprint will be in 13 markets, which will be further reduced to 12 once the ongoing exit from Washington, D.C., is finalized.

ATB Capital Markets is acting as financial adviser to the company on the Florida transactions. CLD Advisory is acting as financial adviser to the MINT Shango JV.

For more information, visit cannabistcompany.com.