New York Weed Giant The Cannabist Is Selling Its Florida Business, Here’s Why
The Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQX:CBSTF) (FSE: 3LP) – formerly known as Columbia Care – announced on Monday a series of initiatives as it seeks to transform its business to improve profitability, enhance margin profile and enable cash flow generation.
What Happened
The company said in a press release that a planned corporate restructuring is expected to generate roughly $10 million in annual cost savings.
In addition, the Cannabist is in the process of divesting its entire asset portfolio and license in the Florida market, with LOIs for multiple transactions in place and $2.75 million of deposits in escrow.
Upon divesting these assets, including 14 retail locations, three cultivation and manufacturing facilities, and its license, the company will exit the Florida market, which represented less than 5% of total revenue in the first quarter of 2024.
The business transformation was supported by a special committee of the company’s board of directors.
The cannabis business …