Columbia Care Inc. (CSE: CCHW) announced today that it has completed the acquisition of cannabis multi-state operator Green Leaf Medical. The upfront consideration for the transaction is approximately US$240 million.
The acquisition price is composed of US$45 million in cash and US$195 million in Columbia Care shares, with additional potential performance-based milestones in the next two years.
Green Leaf’s financials will be immediately accretive to Columbia Care’s gross margin, adjusted EBITDA, and cash flow from operations. For Q1 2021, Green Leaf recorded approximately US$29 million in revenue, 50% gross margins, and a 30% adjusted EBITDA margin.
The acquisition also adds Green Leaf’s approximately 400,000 square feet of cultivation space across Pennsylvania, Maryland, Virginia, and Ohio to Columbia Care’s capacity, as well as four operational dispensaries and six dispensaries currently in development.
Last month, Columbia Care reported proforma Q1 2021 revenue of $92.5 million as Canaccord maintained the firm as one of its top cannabis firms picks.
Columbia Care Inc. last traded at $6.77 on the CSE.
Information for this briefing was found via Sedar and Columbia Care Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.