Multi-state cannabis firm The Cannabist Company announced last week that it is selling off all of its ownership interests in its subsidiaries and seeking to enter Chapter 15 bankruptcy.
The Massachusetts-based company said it had already sold its stake in Virginia’s Green Leaf Medical to Parma for $130 million in a deal that closed in February.
On March 23, the company said it had entered into an agreement with Holistic for the sale of its Ohio holdings, which includes: Columbia Care LLC; Columbia Care OH, LLC; Corsa Verde, LLC; Cannascend Alternative, LLC; Cannascend Alternative Logan, LLC; Green Leaf Medical of Ohio II, LLC; CC OH Realty, LLC; and Green Leaf Medical of Ohio III, LLC. The deal is worth $47 million, including $34.5 million in cash and a $12.5 million promissory note from Holistic, and is expected to close during the third quarter of the year.
In a separate March 23 agreement, Cannabist agreed to sell its Columbia Care Delaware, LLC subsidiary to Parma for $16.5 million in cash. That deal is expected to close during the second quarter of this year.
The company said it is still finalizing deals for its assets and subsidiaries in Colorado, Illinois, Maryland, Massachusetts, New Jersey, and West Virginia. In connection with the bankruptcy, Cannabist has ceased all of its New York operations and is in the process of shutting down its Pennsylvania operations.
Cannabist indicated it has appointed SierraConstellation Partners LLC as chief restructuring officer and that trading of its shares on Cboe Canada Inc. will be halted and ultimately the company will be delisted.
