NEW YORK, Nov. 7, 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 the closing of the sale of its 14 Florida dispensaries and two cultivation and manufacturing facilities in Alachua and Arcadia (the “MINT/SHANGO Transaction”) to MINT Cannabis and SHANGO, two leading, privately-held multistate operators as joint venture partners (the “MINT/SHANGO JV”). This agreement was previously announced on Aug. 23, 2024.
MINT/SHANGO Transaction Highlights
- Consideration for the MINT/SHANGO Transaction, subject to adjustment, is $5 million. Upon closing, the MINT/SHANGO JV paid closing consideration of approximately $3 million in cash and issued a $2 million promissory note. $750k of this consideration was already held in escrow.
- Additionally, the MINT/SHANGO JV transferred 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 (2) cultivation and manufacturing facilities in Alachua and Arcadia
- The Company’s MMTC license
The Cannabist Co. Management Commentary
“This sale is a key part of our ongoing strategy to streamline our company portfolio and strengthen the balance sheet as we build a better, more sustainable business,” The Cannabist Co. CEO David Hart said.
“As we've previously noted, exiting Florida allows us to put cash on the balance sheet and exit a market that, because of an unbalanced portfolio, was not profitable for us,” he said. “We are grateful for all the hard work and dedication from our Florida team and know they will be in good hands with the MINT/SHANGO JV. We continue to work towards closing the Lakeland transaction for an additional $11.4 million, and we can now proceed with the planned sale of the MMTC license received in the MINT/SHANGO transaction.”
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.
