FK Advises Ad Hoc Committee of Noteholders on Cannabist’s $130 Million Virginia Asset Sale
The Cannabist Company Holdings Inc. announced that, following a go-shop process, it has entered into an agreement to sell all of the ownership interests of its subsidiary engaged in the business of cultivating, producing, manufacturing, distributing and selling cannabis in the Commonwealth of Virginia to an entity affiliated with Millstreet Credit Fund LP for total consideration of $130 million, subject to adjustment (the “Transaction”). The Virginia assets consist primarily of 5 active retail locations, 1 additional retail location in development, and approximately 82,000 square feet of cultivation and production capacity in the Richmond region.
Feuerstein Kulick LLP serves as US counsel to the holders of a majority of the aggregate principal amount of (i) the nine and one quarter percent (9.25%) Senior Secured Notes due December 31, 2028 (the “2028 Notes”) and (ii) the nine percent (9.0%) Senior Secured Convertible Notes due December 31, 2028 (the “2028 Convertible Notes” and together with the 2028 Notes, the “Notes”) of the Company (the “Ad Hoc Committee”). Concurrently with the execution of the Equity Purchase Agreement, the Ad Hoc Committee provided their consent to the Transaction. The Transaction is expected to close early in 2026 or before, and the Company expects to use a portion of the net proceeds from the Transaction to redeem Notes.
Team Members: Samantha Gleit, Anan Kahari, Rene Perez, Matthew Berkowitz, and Miranda Sapoznik
