Columbia Care Closes Inexperienced Resolution Deal on Colorado’s Largest Marijuana Acquisition to Date
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The Green Solution, one of Colorado’s largest marijuana companies, is about to complete a sale to Columbia Care Inc., a publicly traded company based in New York. According to an announcement from Columbia Care, the deal will officially take place on September 1st, a few months later than originally planned.
When the two sides first agreed on the acquisition in November 2019 – $ 110 million in Columbia Care stock, $ 15 million in cash, and $ 15 million in senior loans to 23 TGS pharmacies and six growing operations – the deal should take place in early 2020. However, that forecast was postponed to the second quarter of the year, which ended June 30, and then postponed again.
As several other announced marijuana acquisitions fell apart in 2020 and the COVID-19 pandemic brought financial uncertainty to the stock market, questions began to bubble over the future of the TGS deal. A TGS spokeswoman informed us a week ago that the merger was progressing and promised an update “soon”. Now both companies report that the deal is six days from final closing.
“The completion of the The Green Solution acquisition marks a major milestone for Columbia Care,” said Nicholas Vita, Columbia Care CEO, in a statement. “The entire Columbia Care team looks forward to working with the TGS organization and leadership as we pursue our common goal of being the nation’s leading cannabis operator.”
The originally agreed acquisition package of $ 140 million remains in place, according to an investor presentation by Columbia Care in August. According to TGS, Columbia Care has also been given the opportunity to acquire a non-legal marijuana hospitality license in Adams County.
Colorado banned publicly traded companies from owning marijuana businesses until 2020. If the Columbia Care / TGS deal goes as advertised, it would be the largest publicly traded acquisition of a licensed marijuana business in the state’s history.
The Green Solution was founded in 2010 by the Speidell family. Much of the family is expected to remain on board as a manager.
“This is a groundbreaking acquisition that will allow us to offer our customers in Colorado the extensive Columbia Care product portfolio and rapidly expand our brands, products and expertise to all major US markets. We look forward to our continued success and growth locally and nationally, “said Kyle Speidell, co-founder of TGS, in a statement.
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Thomas Mitchell has been writing about everything cannabis-related for Westword since 2014, covering sports, real estate, and general news en route to publications like the Republic of Arizona, Inman, and Fox Sports. He is currently the cannabis editor for westword.com.