Cannabist Co. completes $130M sale of Virginia medical marijuana biz

The Cannabist Co. has completed the $130 million sale of its Central Virginia medical marijuana business to an entity affiliated with Boston-based hedge fund Millstreet Credit Fund.

The sale, announced Thursday, involves Cannabist’s Green Leaf Medical of Virginia subsidiary, which cultivates, manufactures and sells medical marijuana in the greater Richmond region. Assets included in the sale primarily consist of five retail locations, one additional retail location under development and about 82,000 square feet of cultivation and production capacity in the Richmond metro area.

The Millstreet affiliate, Parma Holdco, paid $117.5 million at the closing of the transaction. The remaining $12.5 million was placed into escrow at closing and will be released in two parts: up to $1 million upon the finalization of the post-closing purchase price adjustments, and the remaining amount after nine months, provided the funds are not needed to satisfy indemnification obligations.

Initially, Cannabist had planned to sell its assets to Connecticut-based marijuana products provider Curaleaf, announcing the sale on Dec. 2, 2025. However, during the go-shop period, during which the company was allowed to seek competing offers, Cannabist received a $130 million proposal from Millstreet and determined it was the superior deal.

Following the termination of the first agreement, Cannabist announced it would pay Curaleaf a $3.3 million breakup fee.

More details on what Millstreet plans to do with the company were not provided. Millstreet and Cannabist did not immediately return requests for comment. Based in New York City, Cannabist was formerly known as Columbia Care and operates cannabis stores in 12 U.S. markets.

Legislation is currently advancing in the Virginia General Assembly to create a retail marijuana market, which the Virginia Cannabis Control Authority would administer. The bill, SB542, provides that no retail sales may occur before Nov. 1.