The Cannabist Company Holdings Inc. has announced plans to exit Florida’s cannabis market.
The company has entered into an agreement with a “leading multistate operator” to sell its 40,000-sq.-ft. Lakeland cultivation facility for $11.4 million, payable in cash.
Additionally, The Cannabist Company entered into an agreement with MINT Cannabis and Shango, as joint venture partners, to acquire all 14 Cannabist dispensaries in Florida and the company’s cultivation and manufacturing facilities in Alachua and Arcadia for $5 million. MINT Cannabis and Shango are privately-held multi-state dispensary operators and cultivators that will bring strong operational expertise to these dispensary locations, which after closing, are expected to be rebranded to MINT Cannabis.
Additionally, the MINT Shango joint venture will transfer to The Cannabist Company all outstanding equity interest in its MMTC license entity, which the company expects to divest to an additional third party.
“We are pleased to announce our definitive agreements to transition our Florida operations over to a leading multistate operator and the MINT Shango joint venture,” said David Hart, CEO, The Cannabist Company. “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 non-dilutive 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.”
The transactions are subject to closing conditions, including regulatory approvals. Upon exit of the Florida market, the Cannabist Company’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.
