Columbia Care Raises $25M In Subscription Agreements To Fuel Growth Strategy

Columbia Care Inc. CCHW CCHWF 3LP cannabis company has entered into subscription agreements with institutional investors for the purchase and sale of 22,244,210 units of the company at CA$1.52 ($1.13) per unit, for aggregate gross proceeds of roughly CA$33.8 million.

Investors can purchase $25 million in additional units at a price equal to the issue price upon written notice to the company for up to 45 days.

The company and the investors entered into a customary registration rights agreement in connection with the transaction. The units will be subject to limited lock-up requirements.

The closing of the initial tranche is subject to customary closing conditions and is expected to close on or about September 21, 2023.

Columbia Care intends to use the proceeds from the offering to reduce its outstanding indebtedness and for general corporate purposes.

The New York-based company also entered into a non-binding agreement with the investors for the repurchase by the company of up to US$25 million of the principal amount of their holdings in the 6% senior secured convertible notes due June 2025 of the company, the purchase price of which would be payable in common shares of the company.

Completing these transactions would be subject to definitive documentation and receipt of all necessary regulatory approvals.

Meanwhile, Columbia Care and Cresco Labs CL CRLBF 6CQ recently wrapped up a multibillion-dollar merger deal.

"In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders," Charles Bachtell, CEO and co-founder of Cresco Labs said in July.

Both Bachtell and Columbia Care's CCO Jesse Channon, will speak at the upcoming Benzinga conference in Chicago where they will undoubtedly shed more light on the issue.

CCHWF Price Action

Columbia Care's shares traded 5.1852% lower at $1.28 per share at the time of writing on Monday morning.

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Photo: Courtesy of geralt and Kindel Media by Pixabay

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.