Columbia Care Signs Definitive Agreement to Acquire Medicine Man, a Rapidly Growing, Vertically Integrated Operator in the Denver Metro Area

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Pioneering Vertical Operator Will Considerably Strengthen Columbia Care’s Place as Chief in World’s Second-Largest Hashish Market

NEW YORK — Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Firm”), one of many largest and most skilled cultivators, producers and suppliers of hashish merchandise in america, at present introduced that it has entered right into a definitive settlement to amass Medicine Man Denver (“Medication Man”), a premier vertically built-in hashish firm that has been serving the Denver metro space since 2009.

The acquisition of Medication Man additional solidifies Columbia Care’s place as essentially the most scaled retailer, cultivator, and producer in Colorado, the world’s second-largest hashish market. Medication Man is outperforming the broader Colorado market, with gross sales progress of 42 p.c in 2020, versus 24 p.c for the state, and 64 p.c year-to-date by means of Might, versus 25 p.c for the state. The acquisition will add one cultivation facility and 4 dispensaries, together with one co-located adult-use and medical location and three adult-use amenities to Columbia Care’s nationwide footprint.

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“Now we have nice admiration for what Medication Man’s leaders, Sally Vander Veer and Andy Williams, have constructed over the previous 12 years by means of their tireless management, native and state-level advocacy, and distinctive enterprise acumen and imaginative and prescient,” mentioned Nicholas Vita, CEO of Columbia Care. “Medication Man will additional cement our place because the main vertically built-in operator in Colorado, in tandem with our ongoing integration of The Inexperienced Resolution, and may have a constructive influence on our monetary efficiency for years to return. We’re additionally assured that the robust alignment of values between our two corporations will assist Columbia Care proceed its progress in Colorado in a sustainable and accountable approach. We’re thrilled to carry one among Colorado’s longest-running and most extremely revered hashish corporations into the Columbia Care household.”

Medication Man brings a extremely skilled and gifted crew of executives and workers that additional bolsters Columbia Care’s robust pool of expertise. The corporate’s founders and administration crew are pioneers of Colorado’s authorized hashish {industry}, and over the previous 12 years have constructed a broadly regarded, extremely worthwhile enterprise that has earned robust loyalty amongst each its prospects and workers. Due to this, Medication Man has been acknowledged as a best-in-class retailer, employer and cultivator by means of quite a few awards.

Andy Williams, Medication Man’s President and Co-Founder, acknowledged:“Since 2009, the Medication Man household has helped to pioneer the hashish {industry} in Colorado. Now we have executed it responsibly and vigorously, for our prospects, workers, and our household. Our {industry} is altering and rising now sooner than ever. We acknowledge the necessity to accomplice with others with a view to proceed to compete inside, and assist to responsibly rework, the {industry} because it grows. We’re proud to be becoming a member of our companies with Columbia Care, a real chief on this subsequent section of progress within the hashish {industry}. Columbia Care is made up of individuals with household enterprise values and has the horsepower to guide the hashish {industry} into the longer term. We’re actually excited to be a part of this new crew.”

“Medication Man is thrilled to announce our partnership with Columbia Care,” mentioned Sally Vander Veer, CEO of Medication Man. “They’re a perfect accomplice, and I’m assured of their capability to uphold the upper requirements that our family-owned and operated cultivation and dispensaries have constructed over the previous twelve years. I knew this chance was the appropriate match for our household and workers due to our shared dedication to operational excellence, emphasis on workers and tradition, and a customer-first mentality. I look ahead to a seamless integration and an thrilling subsequent chapter of progress and success.”

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The upfront consideration of $42.0 million, comprising $8.4 million in money and $33.6 million in inventory, represents a a number of of roughly 4.5x projected 2021 EBITDA. The transaction phrases additionally embody a possible extra milestone cost in 2022 if sure efficiency targets are met.

Advisors

Foley Hoag LLP is serving as authorized counsel to Columbia Care. Proper Facet Advisory Companies is performing as monetary advisor to Medication Man. Husch Blackwell LLP is performing as authorized counsel to Medication Man.

About Columbia Care

Columbia Care is without doubt one of the largest and most skilled cultivators, producers and suppliers of hashish merchandise and associated companies, with licenses in 18 US jurisdictions and the EU. Columbia Care at the moment operates 122 amenities¹ together with 92 dispensaries and 30 cultivation and manufacturing amenities. Columbia Care is without doubt one of the unique suppliers of medical hashish within the U.S. and continues to ship industry-leading services and products. The corporate launched Cannabist, its new retail model, making a nationwide dispensary community that leverages proprietary know-how platforms. Via its dispensary community, the corporate presents merchandise spanning flower, edibles, oils, and tablets, and manufactures standard manufacturers together with Seed & Pressure, Triple Seven, Classix, Plant Sugar, Press, Amber and Platinum Label CBD. Columbia Care is thought for setting the usual for compassion, professionalism, high quality, care, and innovation within the quickly increasing hashish {industry}. For extra data on Columbia Care, please go to www.col-care.com.

Warning Regarding Ahead-Trying Statements

This press launch accommodates sure statements that represent forward-looking data inside the that means of relevant securities legal guidelines (“forward-looking statements”). Statements regarding Columbia Care’s targets, objectives, methods, priorities, intentions, plans, beliefs, expectations and estimates, and the enterprise, operations, monetary efficiency and situation of Columbia Care in addition to statements regarding the income steerage and constructive adj. EBITDA steerage for Medication Man are forward-looking statements. The phrases “imagine,” “anticipate,” “anticipate,” “estimate,” “intend,” “could,” “will,” “would,” “might,” “ought to,” “proceed,” “plan,” “objective,” “goal,” and related expressions and the detrimental of such expressions are supposed to establish forward-looking statements, though not all forward-looking statements comprise these figuring out phrases.

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Sure materials elements and assumptions have been utilized in offering these forward-looking statements. Ahead-looking data includes quite a few assumptions, together with assumptions on income and anticipated gross margins, capital allocation, EBITDA break even targets and different monetary outcomes; progress of its operations through enlargement, for the results of any transactions; statements regarding the enterprise and future actions of, and developments associated to, the Firm and Medication Man after the date of this press launch, together with things like future enterprise technique, aggressive strengths, objectives, enlargement and progress of the Firm and Medication Man enterprise, operations and plans; expectations regarding the disposition of Medication Man actual property for sure anticipated proceeds; expectations concerning cultivation and manufacturing capability; expectations concerning receipt of regulatory approvals; expectations that licenses utilized for can be obtained; potential future legalization of adult-use and/or medical hashish underneath U.S. federal legislation; expectations of market measurement and progress within the U.S. and the states through which the Firm operates; expectations for different financial, enterprise, regulatory and/or aggressive elements associated to the Firm, Medication Man or the hashish {industry} usually; and different occasions or situations that will happen sooner or later. Ahead-looking statements could relate to future monetary situations, outcomes of operations, plans, targets, efficiency or enterprise developments. These statements converse solely as on the date they’re made and are based mostly on data at the moment out there and on the then present expectations. Holders of securities of the Firm are cautioned that forward-looking statements usually are not based mostly on historic details however as a substitute are based mostly on affordable assumptions and estimates of administration of the Firm on the time they have been supplied or made and contain recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, efficiency or achievements of the Firm, as relevant, to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements, together with, however not restricted to, dangers and uncertainties associated to: the out there funds of the Firm and the anticipated use of such funds; the provision of financing alternatives; authorized and regulatory dangers inherent within the hashish {industry}; dangers related to financial situations, dependence on administration and foreign money threat; dangers regarding U.S. regulatory panorama and enforcement associated to hashish, together with political dangers; dangers regarding anti-money laundering legal guidelines and regulation; different governmental and environmental regulation; public opinion and notion of the hashish {industry}; dangers associated to contracts with third-party service suppliers; dangers associated to the enforceability of contracts; reliance on the experience and judgment of senior administration of the Firm, and talent to retain such senior administration; dangers associated to proprietary mental property and potential infringement by third events; dangers regarding the administration of progress; growing competitors within the {industry}; dangers inherent in an agricultural enterprise; dangers regarding power prices; dangers related to hashish merchandise manufactured for human consumption together with potential product remembers; reliance on key inputs, suppliers and expert labor; cybersecurity dangers; capability and constraints on advertising and marketing merchandise; fraudulent exercise by workers, contractors and consultants; tax and insurance coverage associated dangers; dangers associated to the financial system usually; threat of litigation; conflicts of curiosity; dangers regarding sure cures being restricted and the problem of enforcement of judgments and impact service outdoors of Canada; dangers associated to future acquisitions or tendencies; gross sales by present shareholders; restricted analysis and information regarding hashish; in addition to these threat elements mentioned underneath “Threat Components” in Columbia Care’s Annual Data Type dated March 31, 2021 and filed with the relevant Canadian securities regulatory authorities on SEDAR at www.sedar.com, within the Firm’s Annual Data Type, and as described every so often in paperwork filed by the Firm with Canadian securities regulatory authorities.

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The aim of forward-looking statements is to supply the reader with an outline of administration’s expectations, and such forward-looking statements might not be acceptable for another goal. Specifically, however with out limiting the foregoing, disclosure on this press launch in addition to statements concerning the Firm’s targets, plans and objectives, together with future working outcomes and financial efficiency could make reference to or contain forward-looking statements. Though the Firm believes that the expectations mirrored in such forward-looking statements are affordable, it may give no assurance that such expectations will show to have been right. A variety of elements might trigger precise occasions, efficiency or outcomes to vary materially from what’s projected within the forward-looking statements. No undue reliance needs to be positioned on forward-looking statements contained on this press launch. Such forward-looking statements are made as of the date of this press launch. Columbia Care undertakes no obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as required by relevant legislation. The Firm’s forward-looking statements are expressly certified of their entirety by this cautionary assertion.

¹Professional forma amenities both open or underneath growth; contains amenities the place Columbia Care supplies consultative companies pursuant to the phrases of a administration companies association

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Contacts

Investor Contact
Lee Ann Evans
Investor Relations
+1.212.271.0915
ir@col-care.com

Media Contacts
Lindsay Wilson
Columbia Care
+1.978.662.2038
media@col-care.com

Gabriella Velez
5WPR
columbiacare@5wpr.com