Columbia Care Inc. (CSE: CCHW) announced last night that it has completed the acquisition of Colorado-based cannabis company Medicine Man. The upfront consideration for the transaction is approximately US$240 million.
The acquisition price is composed of US$8.4 million in cash and US$33.6 million in Columbia Care shares, with potential additional performance-based payment milestones for 2021 performance.
The Colorado firm’s financials will be immediately accretive to Columbia Care’s adjusted EBITDA, and cash flow from operations. The cannabis firm relayed that the upfront consideration for the acquisition is approximately 4.5 times the acquired company’s projected adjusted EBITDA for 2021.
The acquisition also adds one cultivation facility and four dispensaries, bringing the company’s footprint to six cultivation and manufacturing facilities and 26 dispensaries in Colorado.
Columbia Care Inc. last traded at $3.79 on the CSE.
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