Columbia Care expands New York’s hashish program with the acquisition of one of many largest working greenhouse areas on the East Coast – MJNews Community
The new location expands Columbia Care’s cultivation and production space by approximately 1 million square meters. offers flexibility to scale as market demand increases; supports potential use for future social equity partnerships and adult sales
NEW YORK: Columbia Care Inc. announced today that it has acquired 34 acres of growing land in eastern Long Island, New York. The company’s first harvest and sale of this property for the state’s medical marijuana program is expected in the fourth quarter of 2021, subject to regulatory approvals.
The Long Island site provides additional cultivation and manufacturing capacity for Columbia Care’s existing Rochester facility, which has served more than 120,000 medical cannabis patients in New York since 2015 to meet the demands of a growing medical market, the number of newly approved additional Form factors, including flowers, in 2021. The new location also allows the company to diversify its operations and create opportunities for creating potential social equity business partnerships. a dedicated federally licensed global medical cannabis manufacturing and research center in Rochester; and support the company’s entry into the state’s adult use program.
This facility currently has approximately 740,000 square feet of greenhouse space that the company intends to acquire in phase two of the transaction, with an additional 200,000 square feet growth capacity perfect for retail distribution to Columbia Care’s three pharmacies in NYC and Long Island and wholesale distribution in the most 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. In addition, the existing owners have already planted and successfully harvested industrial hemp on site.
“As a company with roots in New York, it was incredibly important for us to build a scalable, vertically integrated operation in the state that not only offers our patients and partners the very best quality and prices today, but also ensures that we can ours Continue to fulfill mission to New Yorkers through future legal cannabis programs. This is a commitment to our patients, communities, regulators, elected officials, and social justice partners that we are here long term and intend to be the leaders who define cannabis in New York State – made in New York, by New Yorkers for New York Yorkers, “said Nicholas Vita, Columbia Care CEO.” We look forward to seeing New York’s regulated market become one of the world’s leading cannabis markets. Some market size estimates will exceed $ 5 billion by 2025 and more than 75,000 jobs will be created by 2027. We intend to continue investing in opportunities that support growth for all. “
Columbia Care pays a total purchase price of $ 42.5 million, including $ 15.0 million in cash and $ 27.5 million in Columbia Care stock. The first payment of $ 30.0 million was made. The remaining $ 12.5 million in share payments will follow in August 2021 upon completion of the second phase of the transaction.