Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”), one of the largest and most experienced cultivators, manufacturers and providers of cannabis products, today announced that it has finalized the acquisition of Ohio-based CannAscend, the owner and operator of four dispensaries across the state located in Dayton, Logan, Marietta and Monroe, as of July 1. The purchase option agreement was first announced in 2018.
Combined with its existing facilities in Mt. Orab (Level 1 cultivation, awarded in 2019 and acquired in 2021), Columbus (manufacturing, acquired in 2021), and Warren (recently acquired gLeaf dispensary), the incorporation of CannAscend enhances Columbia Care’s vertically integrated operations in the state and brings Columbia Care to the dispensary legal limit as one of the most scaled operators in Ohio.
“Ohio is a key state, currently a top-five market for Columbia Care, with year-to-date state sales up more than 110 percent year-over-year and annualized runrate sales of more than $370 million for 2021. We are thrilled to be able to affirm our leadership presence in Ohio with the completion of this acquisition,” said Nicholas Vita, CEO of Columbia Care. “We are grateful to the State of Ohio for its support and have enjoyed the last few years working with the CannAscend team. Combining CannAscend’s footprint with our state-of-the-art cultivation and production facilities and existing dispensary will have an immediate positive financial impact, and we look forward to continuing on the growth trajectory as one company. We are honored to directly serve the medical cannabis community in Ohio, which has grown to more than 200,000 registered patients.”
In October 2018, Columbia Care and CannAscend entered into a Membership Interest Purchase Option Agreement. Under the terms of the agreement, Columbia Care purchased an exclusive option to acquire all outstanding membership interests of the dispensary operations on the first anniversary of the date upon which all four of the dispensaries have been issued certificates of operation under Ohio’s Medical Marijuana Control Program. All four dispensaries were issued certificates of operation under Ohio’s Medical Marijuana Control Program in 4Q 2019. The balance of total transaction price of $14.2 million will be paid from funds held in escrow, which will not affect Columbia Care’s cash position. As a result of the acquisition, Columbia Care will consolidate CannAscend from July 1 and will no longer break out Combined and Reported financial results.
