US growing company Columbia Care Inc. announced it has completed its acquisition of Medicine Man, a Colorado-based cannabis company that has been serving the Denver metro area since 2009.
This acquisition adds one cultivation facility and four dispensaries to Columbia Care’s Colorado operations, including the Medicine Man Longmont location, which is anticipated to close in Q1 2022. Columbia Care’s footprint in Colorado will now total 26 dispensaries and six cultivation and manufacturing facilities, including those under The Green Solution brand.
"As the second-largest cannabis market in the world, Colorado has become a global bellwether for adult-use programs and continues to show strong organic growth. The acquisition of Medicine Man enhances our position in the state by combining with a recognized operator that has been a consistent outperformer in the Colorado market since its founding," said Nicholas Vita, CEO of Columbia Care.
Total upfront consideration was $42.0 million, comprised of $8.4 million in cash and $33.6 million in stock, with the potential for an additional milestone payment based on 2021 performance. The transaction is immediately accretive to Adjusted EBITDA and cash flow from operations. Upfront consideration of $42.0 million represents a multiple of approximately 4.5x projected 2021 EBITDA.