Curaleaf Acquires Cannabist Company Operations in Virginia 

A subsidiary of Curaleaf Holdings Inc. is acquiring the Virginia operations
of the Cannabist Company Holdings Inc. – formerly known as Columbia Care –
in a deal potentially worth $110 million. The assets include five active
retail locations, one retail location in development, and about 82,000
square feet of cultivation and production capacity in Richmond.

The transaction includes $80 million in cash payable at closing, $20
million in cash as deferred consideration, and a $10 million promissory
note that carries a 6% annual interest rate.

The Cannabist Company holds cannabis licenses in 12 U.S. jurisdictions,
operating 77 facilities, including 61 dispensaries and 16 cultivation and
manufacturing facilities, including those under development. Its brands
include Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and
Amber.

Curaleaf’s brands including Curaleaf, Select, Grassroots, Find, Anthem, and
The Hemp Company. It operates in 17 states and owns and operates 151
dispensaries and 19 cultivation sites.

The deal comes the Virginia Legislature’s Joint Commission on the Future of
Cannabis Sales released its final proposal on adult-use cannabis rules.
State lawmakers legalized adult-use sales nearly five years ago, but the
program’s rollout had been blocked by then-Gov. Glenn Youngkin (R).

Last month, Abigail Spanberger (D) won the governorship and has voiced
support for adult-use sales to commence in the state.