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Colorado’s Green Solution marijuana chain bought by multi-state operator Columbia Care for $140 million

Columbia Care, a company involved in the cannabis industry on two continents, on Tuesday bought The Green Solution, Colorado’s biggest marijuana chain, for approximately $140 million.

The Green Solution, founded before recreational legalization in 2010, runs 21 dispensaries in Colorado with two more under construction and expected to open later this year, according to a news release. It also operates one of the country’s largest marijuana products manufacturing facilities, and a network of indoor and outdoor growing facilities expected to produce more than 48,000 pounds of marijuana by the end of this year, the release said.

The Green Solution co-president Eric Speidell, who co-founded and runs the company alongside his brother Kyle Speidell, spent two years lobbying Colorado lawmakers to loosen restrictions on ownership and capital in the marijuana industry. Earlier this year, the General Assembly approved and Gov. Jared Polis signed a bill allowing for publicly traded marijuana companies in the state. Previous restrictions on ownership were lifted Nov. 1, just days before The Green Solution announced its acquisition.

“We believe this will be an increased opportunity for all cannabis business in the state of Colorado,” Eric Speidell said. “And we strategically worked on it to allow a transition like this to take place.”

By buying the company, Columbia Care’s U.S. empire grows to 74 dispensaries either open or under development in 13 states, Washington, D.C., and Puerto Rico, and 19 cultivation and manufacturing facilities. The company, which is based in Toronto and listed on Canada’s NEO stock exchange but keeps its corporate offices in New York and Massachusetts, also holds cannabis industry licenses in Europe, according to Tuesday’s release.

“Columbia Care has been waiting, just like TGS, for the right moment, the right partner, the right opportunity — and I think we’ve found that,” Columbia Care’s CEO Nicholas Vita told The Denver Post Tuesday night. “We have a great deal of faith in them and they have a great deal of faith in us.”

The Green Solution claims revenues north of $73 million over the 12-month period that ended Sept. 30. The Speidell brothers said the acquisitions mean their stores in Denver will now be boosted by Columbia Care features like the Columbia National Credit card, which allows for electronic transactions in what has largely been an all-cash business in Colorado.

The Green Solution branding will remain on stores in Colorado but they will begin carrying some Columbia Care products. In other states where Columbia Care already does business — such as Arizona, Florida and New York — the reverse process will take place.

“We will initiate what we considered the most well-rounded wellness dispensaries in the country, combining pharmaceutical-grade medical products from Columbia Care with the adult-use product from The Green Solution,” Eric Speidell said.

The $140 million purchase price will be paid in part with $110 million in Columbia Care stock. An additional milestone payment may be made in 2021, according to Tuesday’s release.

State officials on Tuesday said the transaction will require both state and local approval once a formal application has been received. The Speidell brothers said they expect the process to take between five and eight months.

Columbia Care wasn’t the only company The Green Solution looked at when it came to a merger or acquisition, but it quickly rose to the top.

“We’ve vetted dozens of different operators throughout the country,” Kyle Speidell said. “The others we looked at had nowhere near the potential for growth and strength of operations.”


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