The Cannabist Company Announces Partial Redemption of Senior Secured Notes

The Cannabist Company Holdings Inc., a leading cultivator, manufacturer, and retailer of cannabis products in the United States, has announced a partial redemption of its 13% senior secured notes due May 14, 2024. The company has delivered a notice of partial redemption to the holders of the notes, stating that $25 million of the total $38.2 million principal amount will be redeemed on October 23, 2023.

According to the notice, holders of the notes will have a portion of their 13% notes redeemed on a pro rata basis. The redemption price for each $1,000 principal amount of redeemed notes will be $1,010, along with accrued but unpaid interest up to the redemption date. Holders who surrender their notes for redemption will receive a new note for the unredeemed part of the principal amount without charge.

The Cannabist Company plans to use cash from funds on hand to satisfy its obligation to pay the redemption price to the holders of the redeemed notes. This partial redemption follows the company’s recent closing of a private placement, which raised approximately $25 million and aimed to reduce outstanding indebtedness.

By completing this partial redemption, The Cannabist Company expects to reduce overall interest expense and achieve an annualized reduction of $3.25 million in interest expense. The company does not anticipate completing the previously announced exchange of certain 13% notes for a later series of notes.

The Cannabist Company, formerly known as Columbia Care, is a prominent player in the cannabis industry, operating in 16 U.S. jurisdictions. With 125 facilities, including dispensaries and cultivation/manufacturing facilities, the company offers a wide range of cannabis products and services. Its retail brand, Cannabist, has created a national dispensary network and offers popular brands such as Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber.

For more information about The Cannabist Company, visit their website at www.cannabistcompany.com.

Please note that forward-looking statements contained in this press release should be considered in light of potential risks and uncertainties that may cause actual results to differ materially from the expressed expectations. Securityholders are advised to review the risk factors discussed in the company’s Form 10-K and subsequent documents filed with securities regulatory authorities.

Source: [Business Wire](https://www.businesswire.com/news/home/20231009460268/en/)