NEW YORK, N.Y., September 8, 2020 – PRESS RELEASE – Columbia Care Inc. has signed a definitive agreement to purchase Project Cannabis, an award-winning cannabis company based in Los Angeles, Calif., for approximately $57 million in Columbia Care stock and approximately $12 million in cash from the proceeds of a concurrent sale of Project Cannabis’ real estate assets. Columbia Care’s acquisition of Project Cannabis is expected to close in the fourth quarter, 2020.
Project Cannabis is one of the leading cannabis cultivators, wholesalers and retailers of highly recognized, award-winning, branded products, including Triple Seven and Classix, in the world’s largest cannabis market. In Los Angeles, Project Cannabis operates a 32,000-square-foot cultivation facility, along with three adult-use retail dispensaries in prime locations in North Hollywood, Downtown Los Angeles and Studio City. In San Francisco, it operates one adult-use retail dispensary in the Soma district, close to both professional baseball and basketball stadiums. This location also houses one of the only permitted consumption lounges in San Francisco.
The acquisition of Project Cannabis enables Columbia Care to materially increase its scale throughout California and position its wholesale and manufacturing operations as one of the leading suppliers in the state. Going forward, Columbia Care’s new state of the art 45,000-square-foot manufacturing facility in San Diego will manufacture and package all extracted products and concentrates for Project Cannabis. Leveraging its distribution network of more than 100 dispensaries throughout the state, Project Cannabis will continue to sell its entire brand portfolio while simultaneously cross-selling Columbia Care’s medically focused products, recently acquired products and brands from the TGS acquisition, and several new consumer oriented product lines such as the Amber Live Resin portfolio, Columbia Care’s fastest growing product in California.
“Project Cannabis perfects our operating model in California, enables us to maintain supply chain continuity, optimize profitability