The Cannabist Company Announces Major Asset Sales, CCAA Proceedings, and Strategic Restructuring

Chelmsford, Mass. – March 24, 2026 – The Cannabist Company Holdings Inc. (Cboe CA: CBST, OTCQB: CBSTF), formerly known as Columbia Care, has announced a series of transformative strategic transactions and has initiated voluntary proceedings under the Companies’ Creditors Arrangement Act (Canada) (CCAA). These actions mark a critical turning point for the company and have significant implications for shareholders and the company’s future operations.

Key Highlights

• Definitive agreements to sell all Ohio and Delaware assets for a combined total of \$63.5 million (subject to adjustments and closing conditions):
• The Ohio assets will be acquired by Holistic Industries Inc. for \$47 million (\$34.5 million cash, \$12.5 million promissory note).
• The Delaware assets will be acquired by Parma Holdco LLC for \$16.5 million cash.
• Non-binding memorandum of understanding (MOU) for the sale of most remaining assets in Illinois, New Jersey, Colorado, Massachusetts, Maryland, and West Virginia.
• Initiation of CCAA Proceedings in Canada and intention to seek recognition under Chapter 15 of the U.S. Bankruptcy Code.
• Winding down operations in New York and Pennsylvania.
• Support agreement with senior secured noteholders holding more than 60% of the company’s outstanding notes.
• Appointment of SierraConstellation Partners LLC as Chief Restructuring Officer, pending court approval.
• Trading of shares on Cboe Canada Inc. anticipated to be halted and the company to undergo a delisting review.

Strategic Transactions in Detail

Virginia Transaction (Previously Announced)

On December 2, 2025, Cannabist entered into a definitive agreement to sell its Virginia cannabis business to Parma Holdco LLC for a total consideration of \$130 million. The transaction closed on February 5, 2026, with proceeds used to redeem \$84.5 million of 9.25% Senior Secured Notes and \$6.5 million of 9.0% Senior Secured Convertible Notes due December 31, 2028.

Ohio Transaction

On March 23, 2026, Cannabist and several subsidiary entities entered into an equity purchase agreement with Holistic Industries Inc. Holistic will acquire all equity interests of Cannabist’s Ohio cannabis businesses for \$47 million, including \$34.5 million in cash at closing and a \$12.5 million promissory note, both subject to adjustments. The transaction is pending court approval and is expected to close in Q3 2026.

Delaware Transaction

On March 23, 2026, Cannabist and Columbia Care Delaware, LLC, signed an asset purchase agreement with Parma Holdco LLC. Parma will acquire substantially all assets of the Delaware business for \$16.5 million in cash, subject to adjustments and closing conditions. This transaction is expected to close in Q2 2026.

Remaining Markets Transaction

The company has entered into a non-binding MOU for the sale of businesses and assets in Illinois, New Jersey, Colorado, Massachusetts, Maryland, and West Virginia. Final documentation is being negotiated, with the aim to complete these divestitures as part of the overall restructuring.

Restructuring and CCAA Proceedings

• Cannabist has commenced voluntary proceedings under the CCAA in the Ontario Superior Court of Justice (Commercial List).
• The company intends to initiate Chapter 15 proceedings in the U.S. Bankruptcy Court for the District of Delaware to have the Canadian proceedings recognized in the U.S.
• FTI Consulting Canada Inc. has been appointed as Monitor to oversee CCAA proceedings. Cannabist management and board, with oversight from a Special Committee of independent directors and the Monitor, will continue to run day-to-day operations.
• SierraConstellation Partners LLC will be appointed as Chief Restructuring Officer, pending court approval.
• Cannabist has ceased operations in New York and is winding down its Pennsylvania business.

Impacts on Shareholders and Share Price Sensitivity

• Trading Halt and Delisting Review: The company anticipates that its shares will be halted on Cboe Canada and will be subject to a delisting review. This is highly material and could result in suspension of trading and/or delisting, severely impacting liquidity and share price.
• Asset Sales and Use of Proceeds: The announced asset sales, if closed, will provide significant liquidity. However, the company is using proceeds to pay down debt, notably redeeming large portions of its 2028 Notes. Shareholders should note that these are not cash proceeds for equity holders but are aimed at meeting creditor obligations.
• Senior Secured Noteholders’ Support: With over 60% support from noteholders, the restructuring plan has significant creditor backing, which is critical for the planned transactions and wind-downs.
• Orderly Wind-Down and Uncertainty: Operations in New York and Pennsylvania are being exited, and further asset sales are likely. The company’s future structure—if any—after the restructuring is highly uncertain, and equity holders are at significant risk of dilution or loss.
• Legal and Financial Advisors: The company and its creditors have engaged prominent legal and financial advisors, including Stikeman Elliott LLP, Weil, Gotshal & Manges LLP, Moelis & Company LLC, Goodmans LLP, Feuerstein Kulick LLP, and Ducera Partners LLC.

Forward-Looking Statements and Risk Factors

The company cautions that these plans are subject to court and regulatory approvals, and that there is no assurance that the announced transactions will close as expected. The outcome of the restructuring and asset sales, as well as the impact on shareholders, remains highly uncertain. Investors should review the company’s filings on SEC and SEDAR+ for detailed risk factors.

About The Cannabist Company

The company operates in 10 U.S. states across 58 facilities (43 dispensaries, 15 cultivation/manufacturing) and produces several well-known cannabis brands. However, the scope and scale of operations are expected to change significantly as a result of the restructuring and asset sales.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The Cannabist Company is undergoing significant restructuring, including asset sales and court-supervised creditor arrangements. Outcomes for shareholders are highly uncertain, and there is a substantial risk of loss. Investors should consult the company’s official filings and seek professional advice before making any investment decisions.

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