Columbia Care Brings Scale To New York Cannabis Program Through Acquisition Of One Of The Largest Operating Greenhouse Sites On East Coast

New site expands Columbia Care’s cultivation and production footprint by approximately 1M square feet; offers flexibility to scale with increasing market demand; supports potential use for future social equity partnerships and adult-use sales

 

NEW YORK: Columbia Care Inc. announced today it has acquired a 34-acre cultivation site in eastern Long Island, New York. The Company’s first harvest and sales from this property for the state’s medical marijuana program is expected in Q4 2021, pending regulatory approvals.

The Long Island location offers supplemental cultivation and manufacturing capacity for Columbia Care’s existing Rochester facility that has served New York’s more than 120,000 medical cannabis patients since 2015, to meet the demand of a growing medical market, which, subject to regulatory approval, will include a number of newly approved additional form factors, including flower, in 2021. The new site also allows the Company to diversify its operations and open opportunities to create potential social equity business partnerships; a dedicated, federally-licensed global medical cannabis manufacturing and research hub in Rochester; and support the company’s entrance into the state’s adult-use program.

This facility currently has approximately 740,000 square feet of operational greenhouse space, which the Company plans to acquire upon phase two of the transaction, with 200,000 square feet of incremental grow capacity, situated perfectly for both retail distribution to Columbia Care’s three NYC and Long Island dispensaries and wholesale distribution to the most densely populated metropolitan area in the United States. The property’s infrastructure is fully developed for industrial scale and throughput and is currently used for growing ornamental flowers. Additionally, the existing owners have previously planted and successfully harvested industrial hemp on-site.

“As a company whose roots are in New York, it has been incredibly important that we build a scalable, vertically-integrated operation in the state that not only delivers the very best quality and prices to our patients and partners today, but also ensures that we can continue to deliver on our mission to New Yorkers through future legal cannabis programs. This is a commitment to our patients, communities, regulators, elected officials and social equity partners that we are here for the long term and intend to be the leaders who define cannabis in New York State – made in New York, by New Yorkers for New Yorkers,” said Nicholas Vita, CEO of Columbia Care. “We are eager to see New York’s regulated market emerge as one of the top global cannabis markets, with some market size estimates exceeding $5B by 2025 and more than 75,000 jobs created by 2027. We intend to continue to invest in opportunities that support this growth for all.”

Columbia Care will pay a total purchase price of $42.5M, which includes $15.0M in cash and $27.5M in Columbia Care stock. The initial payment of $30.0M has been made. The remaining $12.5M in stock payment will follow in August 2021 upon completion of the second phase of the transaction.

FSD Pharma Inks Saskatchewan Wholesale Supply MOU With High Tide Ventures

CANADA: FSD Pharma this week announced that its wholly-owned subsidiary, FV Pharma Inc. has entered into a non-binding memorandum of understanding with High Tide Ventures Inc. (“High Tide”) dated July 18, 2018 to supply the Saskatchewan market on a wholesale basis with up to 5,000 kilograms of cannabis products over the next year when available. FSD Pharma is working together with Auxly (formerly Cannabis Wheaton Income Corp.) to achieve its mission to develop the largest hydroponic indoor cannabis cultivation facility in Cobourg, Ontario, Canada.

FSD PHARMA ENTERS INTO SASKATCHEWAN WHOLESALE SUPPLY MOU OF UP TO 5,000 KILOGRAMS WITH HIGH TIDE VENTURES

FSD PHARMA ENTERS INTO SASKATCHEWAN WHOLESALE SUPPLY MOU OF UP TO 5,000 KILOGRAMS WITH HIGH TIDE VENTURES

High Tide is in the process of becoming a licensed wholesaler of cannabis products in the province of Saskatchewan. Thomas Fairfull, President and CEO of FSD Pharma, stated, “This non-binding MOU is the result of FSD Pharma’s focus on growing high quality indoor hydroponic cannabis, which I expect will yield more opportunities to build on our relationship in the near future.” Raj Grover, President & Chief Executive Officer of High Tide, added, “High Tide has achieved an important strategic milestone by securing its first wholesale business partner for Saskatchewan and the province’s 51 retail cannabis outlets. It is very important to us to be able to provide the highest quality of indoor grown cannabis. We want to ensure that High Tide is able to offer consumers a variety of options that they actually enjoy.”

High Tide is focused on becoming a strong downstream player in the legal recreational cannabis industry in Canada. Through its subsidiaries, High Tide has also applied for over 30 retail cannabis licenses and associated development permits in Alberta, with applications in British Columbia expected to be submitted shortly.