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.

Islandia NY Bans Medical Marijuana Sales

NEW YORK: The village of Islandia is not one of the locations being mentioned as a site for any of the state’s 20 approved medical marijuana dispensaries, but that didn’t stop its Board of Trustees from passing a law anyway making the sale of pot there illegal.

Some residents praised the pre-emptive rejection.

“It could destroy your life,” one man told WCBS 880 Long Island Bureau Chief Mike Xirinachs. “Just say no.”

“Kids are going to abuse that stuff,” another man said. “Especially I have three stepkids, so I don’t want them anywhere near that stuff.”

Islandia Mayor Allan Dorman said he believes medical marijuana should only be distributed by doctors, not in stores.

Company Leasing Space For Medical Marijuana Dispensary In Downtown Brooklyn

NEW YORK:  A Long Island company vying for a state license to distribute medical marijuana has leased space in Downtown Brooklyn, Crain’s first reported Thursday.

PalliaTech Inc., a producer of marijuana-based pain medications, is looking to move into the second floor of 425 Fulton St., between Pearl and Jay Streets, where it will take up 3,000 square feet of space.

“You want to be in a population center and you want access to public transportation and it’s a great location from that perspective,” said Andrei Bogolubov, executive vice president of PalliaTech. “The state has placed a high priority on geographic dispersion of the dispensaries and where the medicine will be manufactured and you have Brooklyn, where we were able to find a terrific facility there.”

 

NY Medical Marijuana Debate Heats Up

NEW YORK:  Standing patiently in the chamber of the Nassau County Legislature, Jeff Decker had his hands full as his 7-month-old daughter Mabel squirmed in his arms. His wife Carly Tangney Decker and his mother-in-law Cindy Tangney were testifying at a public hearing held a week before Christmas on a bill to authorize the medical use of marijuana in New York.

Mabel has a rare genetic disorder that causes her to suffer severe epileptic seizures. Her family had driven down from upstate Kingston to tell the Assembly Health Committee’s chairman Richard Gottfried (D-Manhattan), who is co-sponsoring the bill, known as the Compassionate Care Act, with state Sen. Diane Savino (D-Staten Island), that they were leaving that night for Colorado because they had learned that they could legally obtain a marijuana derivative there that had shown promise in treating early onset epilepsy. [Read more…]