Columbia Care Agrees to Buy Green Leaf Medical for $240M

Columbia Care Inc. has signed an agreement to buy Green Leaf Medical, LLC, a privately held, fully integrated cannabis multi-state operator, for approximately $240 million, with the potential for additional performance-based milestone payments.

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Columbia (CCHWF) will make a cash payment of $45 million and will issue 43,900,144 common shares of the Company at a value of $195 million, bringing the total consideration to $240 million.

“This combination affirms Columbia Care’s position as one of the largest cultivators, manufacturers and retailers in four key states,” said Nicholas Vita, CEO of Columbia Care. He added, “Green Leaf complements our retail footprint and brings wholesale leadership through which we can drive our portfolio of brands and unique products.”

Philip Goldberg, Green Leaf’s CEO and Co-Founder, stated, “Columbia Care is the ideal partner to take Green Leaf through its next phase of growth.”

The entire Green Leaf management team will be retained and its CEO and Co-Founder, Philip Goldberg, is expected to join Columbia Care’s Board of Directors once the deal has been finalized.

Columbia’s acquisition of Green Leaf is expected to close in the summer of 2021. (See CCHWF stock analysis on TipRanks)

Canaccord Genuity analyst Matt Bottomley recently reiterated his Buy rating on the stock and believes that the stock price has the potential to more than double over the next 12 months.

As the only analyst to have offered a price target in the past three months, his price target of $10.11 implies a potential upside of around 118% from current levels. With 1 Buy and 1 Hold, the analyst consensus is a Moderate Buy.