Cannabis Joint Venture Secures Major Florida Deal Amid Trump Endorsement Of Marijuana Legalization

Private multi-state operators MINT Cannabis and Shango announced on Tuesday they have entered into a definitive agreement to acquire all membership interests in The Cannabist Company Holdings Inc.'s (Cboe CA: CBST) CBSTF 3LP Florida subsidiary, through a joint venture.

Why It Matters

The acquisition is anticipated to provide immediate scale for the MINT SHANGO JV in Florida via 14 dispensary locations, two cultivation and manufacturing facilities, all inventory and its MMTC license for a total consideration of $5 million.

SHANGO's CEO Brandon Rexroad said the Sunshine State "has always been a prime target for our teams due to the unparalleled market dynamics and potential for depth in this state."

That said, Donald Trump revealed on Saturday his support of Florida's Amendment 3, the proposed constitutional amendment that seeks to legalize recreational marijuana. The announcement comes as Floridians prepare to vote for the amendment in the November election.

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The Details

As part of the deal, the MINT/SHANGO JV will retain its existing indoor cultivation facility, and The Cannabist Company has separately divested its Lakeland facility.

In addition, the MINT SHANGO JV has also agreed to transfer to The Cannabist Company all of the outstanding equity interests in its existing MMTC license holder which it plans to divest upon close.

"We are thrilled to join forces with the SHANGO team to bring a premier consumer experience to the state of Florida," Rexroad continued. "In particular, (pending regulatory approval and closing), we look forward to welcoming The Cannabist Company's Florida family of employees into our fold. From there, we will continue our Florida expansion through organic growth."

As previously announced, upon the deal's closing, the MINT Shango joint venture will pay a closing consideration of $3 million in cash and issue a $2 million promissory note, while $750k of this consideration is already held in escrow.

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