Cannabist Closes $130M Sale of Virginia Assets

CHELMSFORD – The Cannabist Co. Holdings Inc. completed the sale of its Virginia Cannabis business to an affiliate of Millstreet Credit Fund LP, generating total consideration of $130 million.

The deal involves the transfer of all ownership interests in the company’s Virginia subsidiary, which operates under Green Leaf (gLeaf) Medical of Virginia. The assets include five active retail dispensaries, one additional location under development, and roughly 82,000 square feet of cultivation and production space in the Richmond area. The operations focus on medical Cannabis in the state.

Payment terms consist of $117.5 million in cash delivered at closing, with the remaining $12.5 million placed in escrow. Of the escrowed amount, up to $1 million will be released upon completion of post-closing adjustments for items like cash, debt, net working capital, and transaction expenses. The balance, minus any amounts used for indemnification claims, is scheduled for release after nine months.

The company originally agreed to sell the assets to Curaleaf Holdings but shifted to the Millstreet affiliate after a go-shop period yielded a higher offer.

This divestiture provides The Cannabist Company with immediate liquidity as it works to address balance sheet pressures, including high-interest debt obligations. Recent reports indicate the company entered a forbearance agreement with noteholders in late January 2026 after skipping certain interest payments to preserve cash while exploring options. Proceeds from the Virginia sale are expected to support debt reduction efforts, such as partial redemptions of its senior secured notes.

The move reflects a broader strategy among MSOs to streamline portfolios by exiting select markets, particularly where regulatory or competitive dynamics limit growth potential. Virginia’s medical-only framework, without a transition to adult-use sales on the immediate horizon, has prompted some companies to reassess their presence there.

For The Cannabist, the transaction represents a step toward financial stabilization, though its overall performance continues to face challenges from industry-wide headwinds including oversupply in key states and constrained access to capital.