The Green Solution, one of Colorado's largest marijuana dispensary chains, announced today, November 5, that it has been purchased by a publicly traded cannabis corporation.
According to the Green Solution's representatives, Columbia Care Inc. has agreed to buy the Green Solution and its twenty dispensaries across Colorado for approximately $140 million. The deal also includes the Green Solution's growing facilities and infused-product brands — of which there are many — as well as three more dispensaries that haven't opened.
Per the terms of the agreement, the Green Solution's ownership would receive $110 million in Columbia Care stock, $15 million in cash and $15 million in senior loans. The agreement is still subject to state regulatory approval, according to the announcement, and will take place in early 2020 if approved. If certain benchmarks are met, the purchase price could increase, according to the deal's terms.
The Green Solution was founded in 2010 by the Speidell family. In a statement announcing the sale, co-founder Kyle Speidell says the Green Solution brand is likely to expand into more states as part of the deal, with executive leadership staying on board.
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“Given the success and reputation we have built over the last decade, we were approached by nearly every serious operator in the cannabis industry about a potential transaction," he says. "This deal allows us to provide Colorado consumers with Columbia Care’s unique portfolio of pharmaceutical-quality products, and also enables us to quickly expand our TGS brands into fourteen new U.S. jurisdictions."
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If approved, Columbia Care would own business licenses in fifteen jurisdictions in the United States and the European Union. The company merged with Canaccord, a publicly-traded Canadian entity, in April to become public. Columbia Care is registered in Canada, the only major nation with a legal cannabis market, but operates out of New York.
The publicly traded corporation could not legally own a business or participate in Colorado's cannabis industry until November 1, when a new law that allows publicly traded entities and more investors into the pot trade took effect.
Soon, Columbia Care will be one of the largest marijuana license holders in the state.
"Today, we are proud to announce that the Green Solution, whose founders built their company on the core principles of market depth, differentiated products, brands and capabilities, consumer satisfaction and scalable infrastructure, will be our first major acquisition,” Columbia Care CEO Nicholas Vita says in a statement. “This transaction further advances Columbia Care’s promise to maximize shareholder return by making us even stronger, both financially and operationally, as we expect to see the majority of our existing markets transition to less regulated, legalized operating environments."