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The Cannabist Company Announces Strategic Transactions and Initiates Proceedings Under the CCAA

CBSTF
  • The Cannabist Company Holdings Inc. entered into definitive agreements to sell its Ohio assets to Holistic Industries Inc. for $47 million ($34.5 million cash & $12.5 million promissory note) with closing expected in Q3 2026.
  • The Company agreed to sell its Delaware assets to Parma Holdco LLC for $16.5 million in cash with closing expected in Q2 2026.
  • The Company signed a non-binding memorandum of understanding to sell operations in Illinois, New Jersey, Colorado, Massachusetts, Maryland, & West Virginia while continuing to wind down operations in New York & Pennsylvania.
  • The Company commenced voluntary proceedings under Canada's Companies' Creditors Arrangement Act (CCAA) in Ontario Superior Court of Justice to facilitate asset sales & preserve liquidity.
  • The Company intends to file Chapter 15 proceedings in U.S. Bankruptcy Court to recognize the Canadian CCAA proceedings.
  • Senior secured noteholders holding over 60% of outstanding notes signed a support agreement backing the strategic transactions & restructuring proceedings.
  • FTI Consulting Canada Inc. was appointed as Monitor for the CCAA proceedings while SierraConstellation Partners LLC serves as Chief Restructuring Officer.
  • Trading of The Cannabist Company's shares on Cboe Canada Inc. is anticipated to be halted subject to a delisting review.
  • The Virginia transaction to Parma closed on February 5, 2026, for $130 million & included the redemption of $90.957 million in senior secured notes.
  • The strategic review process was initiated by a special committee of independent directors to address persistent operational & financial challenges facing the company.