Columbia Care Completes Acquisition of Project Cannabis

IndustryPRwire -- Columbia Care announced that it has completed its acquisition of Project Cannabis, a leading cannabis cultivator, wholesaler and retailer based in Los Angeles, California.

Total transaction consideration includes approximately $52.5 million in Columbia Care stock and an additional consideration of $16.5 million anticipated to be paid to the sellers from the proceeds of a subsequent sale of Project Cannabis’ real estate assets.

Nicholas Vita, CEO of Columbia Care Commented “As both a shareholder and Columbia Care’s CEO, I am delighted to announce the completion of our acquisition of Project Cannabis. This combination enables us to optimize both profitability and scale as we deepen our presence in the world’s largest cannabis market, The transaction is immediately accretive to adjusted EBITDA and cash flow, and California is now one of our top five markets by both revenue and profitability. With Project Cannabis’ premium and exotic strains, nationally recognized brand portfolio and extensive distribution network, we will further enhance the breadth and quality of our product offerings and reach a significant portion of California’s addressable market. We look forward to driving additional operational and financial synergies with Project Cannabis as we leverage their adult-use and wholesaling expertise across the rest of our US markets.”

Project Cannabis’ fully integrated portfolio includes four dispensaries and one 36,000ft2 state-of-the-art cultivation facility. To begin realizing margin synergies, Columbia Care will start manufacturing Project Cannabis’ extracted products and concentrates at the Company’s 45,000ft2 manufacturing facility in San Diego. Through the retail channel, Project Cannabis will cross-sell Columbia Care’s medically-focused and new adult use product lines—along with its existing brand portfolio—leveraging its long-standing distribution network of over 100 dispensaries across California.

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