The Cannabist Company Holdings Inc. ( CBSTF ) announced on Friday that it has entered into a definitive agreement to sell its 40,000-square-foot cultivation facility in Lakeland, Florida, for $11.4 million, payable in cash. The company said $2 million of this consideration is already held in escrow.

Additionally, the New York-based cannabis giant has reached a definitive agreement with MINT Cannabis and Shango, as joint venture partners, to sell all 14 of its Cannabist ( CBSTF ) dispensaries in Florida, along with its cultivation and manufacturing facilities in Alachua and Arcadia. The Cannabist Company ( CBSTF ) will retain one MMTC license, which it plans to divest to a third party at a later time.

Consideration for the MINT/Shango deal, subject to adjustment, is $5 million. Upon closing, the MINT Shango JV will pay a closing consideration of $3 million in cash and issue a $2 million promissory note. $750k of this consideration is already held in escrow.

See Also: Florida Cannabis Legalization: One Poll Shows Weed Going Legal In November Ballot, Another Thumbs Down

Why It Matters

"We are pleased to announce our definitive agreements to transition our Florida operations over to a leading multistate operator and the MINT Shango JV," David Hart, CEO of The Cannabist Company ( CBSTF ), said. "This strategic move aligns with our ongoing efforts to build a better business – rationalizing our footprint and focusing on our growth markets to enhance profitability."

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What's Next

Both transactions under the definitive agreements are subject to closing conditions, including regulatory approvals. Post-closing, MINT Cannabis and Shango are expected to be rebranded to "MINT Cannabis."

After exiting the Florida market, The Cannabist Company's ( CBSTF ) operational footprint will shrink to 13 markets, and further to 12 upon finalizing its exit from Washington, DC.

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CBSTF Price Action

The Cannabist Company Holdings' ( CBSTF ) shares traded 6.48% higher at $0.2776 per share at the time of writing on Friday afternoon.