Cannabist to acquire Lakeland cultivation facility, 14 dispensaries for $16.4M

Cannabist Company announced that it has entered into a definitive agreement with a multistate operator to acquire the Lakeland cultivation facility. Additionally, Cannabist Company entered into a definitive 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. MINT Cannabis and Shango are privately held multi-state dispensary operators and cultivators that will bring strong operational expertise, award-winning genetics and innovative customer experience to these dispensary locations, which post-closing are expected to be rebranded to “MINT Cannabis”. Consideration for the Lakeland Transaction, subject to adjustment, is $11.4M, payable in cash. $2M of this consideration is already held in escrow. Transaction includes a more than 40,000-square-foot cultivation facility in Lakeland. Consideration for the MINT/Shango Transaction, subject to adjustment, is $5M. Upon closing, the MINT Shango JV will pay closing consideration of $3M in cash and issue a $2M promissory note. $750k of this consideration is already held in escrow. Additionally, the MINT Shango JV will transfer to the company all outstanding equity interest in its MMTC license entity, which the company expects to divest to an additional third party. The transaction includes: 14 Cannabist dispensaries, two cultivation and manufacturing facilities, and the company’s MMTC license. Closing of the transactions pursuant to the definitive agreements is 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, DC is finalized.