Cannabis company Columbia Care to cut costs and sell its Florida business
Cannabist, the parent of Columbia Care, to shed workers as part of $10 million in savings.
Cannabist Co. Holdings Inc. said Monday it will reduce its workforce by an amount that has yet to be determined and will divest its holdings in Florida as part of a plan to save $10 million a year.
The Cannabist CBSTF, -6.17%, the parent of dispensary operator Columbia Care, said it will also divest assets “in other underperforming markets” in the coming months.
Columbia Care will focus on profitable markets such as Virginia and New Jersey. It’s also planning to take part in the launch of recreational marijuana markets in Ohio and Delaware.
The move comes amid competition in Florida with larger players such as Trulieve Cannabis Corp. TCNNF, -4.97%, Curaleaf Holdings Inc. CURLF, -4.30% and Green Thumb Industries GTBIF, -0.78% continue to compete in Florida, which is holding a referendum vote on adult-use pot on the November ballot.
In January, Cannabist promoted its operating chief David Hart to chief executive.
The company had agreed to be acquired by Cresco Labs Inc. CRLBF, -4.14% in 2022 but the deal was called off in June of last year.
Cannabist’s stock has fallen by 60% so far in 2024, compared to a 0.3% drop by the AdvisorShares Pure U.S. Cannabis ETF MSOS.
Verano sets first-ever stock buyback
Verano Holdings Corp. VRNOF, -6.53% said Monday it plans to buy back $50 million of its own shares in the cannabis company’s first stock purchase program since it went public three years ago.
“The authorization of our first-ever share repurchase program provides an additional outlet for capital deployment alongside other measures such as capital expenditures, strengthening our balance sheet, and potential M&A as we position Verano for long-term growth,” said Chief Executive George Archos.
Verano’s stock has fallen by 29.7% so far in 2024.
