Columbia Care, a leading operator of electronic medical records systems, has announced that it has entered into an agreement to acquire Green Leaf, a leading supplier of software and services that enable the safe delivery of medical cannabis on behalf of the healthcare industry.
Columbia Care, one of the largest publicly traded cannabis companies, announced that it has closed a $240 million financing to acquire Green Leaf Holdings, Inc., a producer and distributor of cannabis products. The acquisition creates a vertically integrated low cost producer and distributor of premium cannabis products in a regulated market.
Columbia Care (CCRC) announced it is closing its deal to acquire Greenleaf Health for $240 million. The deal will provide Columbia Care with an additional medical cannabis and CBD market presence in Illinois, one of the largest markets for medical marijuana in the U.S. The acquisition, which was announced on April 3rd, is slated to close during the second quarter of 2019, pending regulatory and other closing conditions.. Read more about columbia care acquisition and let us know what you think.
Columbia Care completes acquisition of Green Leaf Medical, strengthening its market leadership position in the Mid-Atlantic region
- Confirms the Company’s position as a leading manufacturer, processor, wholesaler and retailer in Maryland, Ohio, Pennsylvania and Virginia with a limited license.
- Added approximately 400,000 square feet of growing and manufacturing capacity, as well as four active pharmacies and six pharmacies under development in key markets.
- Columbia Care’s gross margin, adjusted EBITDA and free cash flow will increase immediately, and the acquisition multiple will be approximately 4.8x adjusted EBITDA by 2021.
- The completion of vertical integration in all 18 of Columbia Care’s markets will enable the company to launch brands nationally, increase market share at the retail and wholesale levels, optimize margins and increase shareholder value.
NEW YORK-Jun 11, 2021-(BUSINESS WIRE)-Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (Columbia Care or the Company), one of the largest and most experienced growers, producers and suppliers of medical cannabis and adult-use cannabis products in the United States, today announced the completion of the acquisition of Green Leaf Medical, LLC (Green Leaf or gLeaf), a privately held, multi-state, fully integrated cannabis operator (MSO) with a leading market position in the Mid-Atlantic region. The total advance was approximately $240 million, of which $45 million was in cash and $195 million was in Columbia Care shares, with the possibility of additional benchmarks in 2022 and 2023. This transaction will immediately increase gross margin, adjusted EBITDA and cash flow from operations. Today, I am pleased to announce the completion of Columbia Care’s acquisition of Green Leaf, well ahead of our original timeline, solidifying our position as a national leader and largest operator at scale in the Mid-Atlantic region.
Nicholas Vita, Executive Director Columbia Care
Green Leaf’s patented gLeaf brand, scale of cultivation and production, and outstanding reputation and culture are an exceptional complement to Columbia Care’s operational presence in these important markets. He added: Together, we will accelerate and expand our strategy to offer the best products and services in these fast-growing medical markets and be well positioned in states that are preparing for adult use, such as Virginia. We are pleased to welcome the Green Leaf team, led by Philip Goldberg and Kevin Goldberg, to the Columbia Care family and will strive to ensure the continued growth and customer focus that Green Leaf is known for through a thoughtful and deliberate integration. We set out to create a leading cultivation, extraction and retail network that optimises the consumer experience through the use of technology and constructive interaction with people, and we are proud to have achieved this.
Philip Goldberg, CEO and co-founder of Green Leaf
After searching for the right place for our company, our employees and our community, it became clear that there was an organization that shared our vision and priorities: Columbia Care. Kevin Goldberg, co-founder, general counsel and president of Green Leaf, added: We are incredibly grateful to the people of Green Leaf for working with us to build the company and being at the heart of our organization. We look forward to expanding the gLeaf brand into Columbia Care markets and to the benefits of shared innovation and growth that will come from the two teams working together. More information about the transaction can be found in Columbia Care’s December 22, 2020 press release or in the Investor Presentations section of Columbia Care’s website at www.ir.col-care.com. Other highlights Green Leaf’s financial results for the first quarter of 20211
- Revenue is about $29 million.
- Gross margin over 50%.
- Adjusted EBITDA margin above 30
- One of Pennsylvania’s largest and most ambitious growers and processors, with 274,000 sq. ft. of growing and processing capacity; over 100,000 sq. ft. of this capacity is currently in operation and fully funded construction of an additional 174,000 sq. ft. will be completed and operational by the end of 2021.
- One of the largest wholesalers in the state; products are sold to approximately 85% of the 100 active pharmacies in Pennsylvania.
- Enhanced vertical operations related to Columbia Care’s dispensaries in Northeastern Pennsylvania, which provide opportunities for significant revenue and margin improvement at both the retail and wholesale levels.
- A fully constructed 42,000 square foot growing facility and separate processing plant with the potential to significantly increase production and efficiency.
- Green Leaf has two active depots in Maryland (Montgomery and Frederick counties). A third pre-approved collection site (Prince George’s County) is under development and is expected to open in 2022, creating local scale with Columbia Care’s existing collection site in Montgomery County.
- One of the largest wholesalers in the state, whose products are sold in nearly half of the 95 operating pharmacies in the state.
- Operates a robust nationwide home delivery service with 14 vehicles and staff that can also be deployed in the adjacent Washington, D.C., Virginia and Delaware markets through Columbia Care’s existing network.
- The agreement brings Columbia Care’s total number of dispensary licenses in Maryland to four, the maximum number allowed for a single operator in the state, making it one of the largest retail and wholesale operators in Maryland.
- Green Leaf is the largest grower in the state and has a fully developed 82,000 square foot growing, production and dispensary facility in Richmond.
- Green Leaf began cultivation in May 2020 and retail in 20 counties in central Virginia, including the state capital, Richmond, in November 2020.
- delivers to homes across the state with 10 vehicles
- An expansion of Columbia Care’s existing operations in southeastern Virginia (Norfolk/Hampton Roads), one of the most densely populated areas of the state, and an expansion of Columbia Care’s existing cultivation and manufacturing facility, the second largest in the state at more than 60,000 square feet, as well as an active pharmacy in the Norfolk area
- Each licensee may operate a joint cultivation/dispensary complex and five separate dispensaries in its license area, with up to ten additional dispensaries between the two licensees, all at different stages of development.
- The flower will be available in Virginia in September 2021.
- Green Leaf operates one retail pharmacy, bringing Columbia Care to the maximum number of five pharmacies in the state.
- Columbia Care manages and develops 63,000 square feet of growing, production and manufacturing space and recently began commercial sales, making it one of the largest fully integrated operators in the state.
- Columbia Care currently sells finished products to over 85% of Ohio licensed dispensaries.
All dollar amounts and references in this press release are in US dollars. About Columbia Care Columbia Care is one of the largest and most experienced growers, producers and suppliers of cannabis products and related services. It is licensed in 18 countries in the United States and the European Union. Columbia Care currently operates 122 facilities,2 including 92 pharmacies and 30 cultivation and manufacturing facilities. Columbia Care is one of the leading providers of medicinal cannabis in the U.S. and continues to offer state-of-the-art products and services. The company launched Cannabist, its new retail brand, and created a national network of dispensaries using a proprietary technology platform. Through its network of dispensaries, the company offers products such as flowers, supplements, oils and tablets, and produces popular brands such as Seed & Strain, Triple Seven, Classix, Plant Sugar, Press, Amber and Platinum Label CBD. With over four million transactions since its founding in 2012, Columbia Care is known for setting the standard for compassion, professionalism, quality, care and innovation in the rapidly evolving cannabis industry. For more information about Columbia Care, visit www.col-care.com. Financial results for the first quarter of 2021 are based on unaudited data provided by Green Leaf management. Gross margin and adjusted EBITDA are not IFRS measures. 2 Pro forma facilities open or under development; includes facilities where Columbia Care provides consulting services under the terms of the management services agreement. Original press release Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. New Cannabis Ventures is committed to gathering quality content and information about leading cannabis companies to help our readers filter through the noise and stay informed about the most important news in the field. Do you have sensitive information? Please contact us.
In a move that will change the face of the nation’s medical marijuana industry, Columbia Care, one of the nation’s largest and most prominent cannabis businesses, announced Friday that it has acquired Green Leaf, a Massachusetts-based company that operates a network of cannabis-focused physicians.. Read more about green leaf medical dispensary and let us know what you think.
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