Cannabist Finalizes Pennsylvania Dispensary Sale, Prioritizing Wholesale Model

NEW YORK – The Cannabist Company Holdings Inc., a major player in the U.S. Cannabis sector, has completed the sale of its Pennsylvania retail operations for $10 million in cash. The buyer, VP Investment Holdings LLC, includes key figures from Restore Integrative Wellness Center LLC, a prominent dispensary operator in the state. This deal transfers ownership of three medical Cannabis dispensaries in Scranton, Allentown and Wilkes-Barre, which VP Holdings plans to rebrand under the Restore name without delay.

The transaction also includes a supply pact between VP Holdings and The Cannabist Company’s cultivation subsidiary, Green Leaf Medicals LLC, known as gLeaf. This arrangement allows The Cannabist Company to maintain product distribution through Restore’s outlets while shedding direct retail responsibilities.

David Hart, the company’s chief executive, described the move as a deliberate effort to refine operations and improve financial stability. “We’ve taken a proactive step that strengthens our balance sheet, bolsters liquidity, and enhances our operational focus,” Hart said in a statement. He emphasized the company’s intent to maximize output from its Saxton cultivation and processing site, positioning it as the core of Pennsylvania activities.

This divestiture aligns with The Cannabist Company’s broader push to prioritize wholesale over retail in select markets, a tactic seen among multistate operators grappling with tight margins and regulatory hurdles. Recent quarterly results showed a $77.3 million net loss on $86.3 million in revenue, underscoring the pressure to cut costs and redirect resources. In Pennsylvania’s medical Cannabis program, where sales topped $1 billion last year but growth has slowed, focusing on cultivation could yield steadier returns if demand holds.

Critics might question the timing, given ongoing debates over adult-use legalization in the state. Lawmakers have discussed reforms, but no bill has passed, leaving operators in a holding pattern. By exiting retail now, The Cannabist Company gains immediate capital but forgoes potential upside from expanded consumer access. Still, the wholesale shift could prove prescient if broader market changes favor suppliers with established production capacity.

All in all, the deal underscores a practical response to persistent profitability challenges, where asset sales provide breathing room but demand careful execution to sustain long-term viability.