Curaleaf Expands Footprint with Strategic Acquisition in Virginia's Cannabis Market

Curaleaf Holdings, a prominent multistate operator in the cannabis industry, is set to make its entry into the Virginia market through the acquisition of The Cannabist Company Holdings' assets. Announced on Tuesday, the deal is valued at $110 million and includes a vertically integrated medical marijuana license in Virginia. This acquisition positions Curaleaf strategically as Virginia gears up for potential adult-use cannabis sales starting in November 2026

The acquisition encompasses five retail dispensaries with the option to open a sixth, alongside an 82,000-square-foot cultivation facility near Richmond. This move follows The Cannabist Co.'s recent strategic decisions to restructure and explore mergers amidst challenging market conditions. The financial terms of the deal include an $80 million upfront cash payment, an additional $20 million to be paid within 30 days, and a $10 million promissory note at 6% interest. The transaction is anticipated to close in the first quarter of 2026, at which point Curaleaf will take over Green Leaf Medical of Virginia, the license holder

Virginia's cannabis market is poised to become one of the largest new markets in the United States, with a population of 8.6 million. The state has already reported nearly $30 million in sales during the initial months of implementing state-mandated track-and-trace monitoring. Projections from the MjBiz Factbook suggest that adult-use cannabis sales could reach $780 million in the first year and surpass $1.09 billion by the second year. The regulatory framework and whether existing operators will be prioritized or if small businesses will receive favor remain uncertain

The Cannabist Co., formerly known as Columbia Care, plans to utilize the proceeds from this sale to reduce its debt. The company had previously announced a debt restructuring plan to extend the maturity of some loans to 2028. In August, The Cannabist Co. sold its three medical cannabis dispensaries in Pennsylvania to shift its focus towards wholesaling. This strategic divestment allows the company to streamline operations and concentrate on its core business strengths

Virginia's cannabis landscape is currently limited to five vertically integrated licenses, each assigned to a specific geographic region. The entry of Curaleaf into this market not only highlights the growing interest in Virginia's potential but also underscores the competitive nature of the cannabis industry as companies vie for strategic positions ahead of the anticipated legalization of adult-use sales