CCHWF - Columbia Care to acquire Medicine Man Denver in $42M deal

Columbia Care (CCHWF) has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company, in a deal valued at $42M.The upfront consideration of $42M, comprises of $8.4M in cash and $33.6M in stock, representing a multiple of about 4.5x projected 2021 EBITDA.The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met, Columbia Care said.The acquisition of Medicine Man further solidifies Columbia Care's position as the most scaled retailer, cultivator, and manufacturer in Colorado, the company said.The deal will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint.The transaction is expected to close in Q4 2021.

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Columbia Care to acquire Medicine Man Denver in $42M deal