According to a press release published by the Cannabis Business Times, the small Multi-State Operator (MSO) Vireo Growth Inc. is buying assets of the large MSO The Cannabist/Columbia Care in New Jersey and elsewhere.
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They are acquiring certain cannabis cultivation, manufacturing, and retail operations from subsidiaries of Cannabist in New Jersey, Colorado, Illinois, Massachusetts, and West Virginia.
That would make it one of the largest MSOs in the United States with operations in 15 states. They also operate in Canada.
Heady NJ has already heard rumors that the Cannabist is laying off its staff in the Garden State, specifically its cultivation staff.
MSO Viero Health Buying MSO Cannabist Assets
The transaction is expected to add up to 25 dispensaries, one cultivation, and one production asset. So, Vireo’s would control approximately 230 dispensaries.
“The acquisition of select Cannabist assets meaningfully expands our operational footprint, strengthens our vertically integrated platform, and adds a highly experienced team along with operations in new markets for Vireo,” Vireo CEO John Mazarakis said. “This transaction reflects our disciplined and strategic approach to industry consolidation as we continue building one of the most capital-efficient, vertically integrated cannabis platforms in the United States.”
“We are proud of the team and operations we have built across these markets,” The Cannabist Co. CEO David Hart said.
Folding the Cannabist
The Cannabist declared bankruptcy in March 2026.
Viero is buying them for $35 million. They’re going to pay $18.75 million in cash at closing and up to $16.25 million in seller notes or a sort of stock.
The deal is subject to certain regulatory approvals, which are subject to regulatory capture when the corporations regulated by an agency dictate the actions of the agency.
They expect to close the deal through 2026 and into calendar year 2027, subject to certain regulatory approvals.
Upon closing the deal, “Vireo expects to integrate the acquired operations into its existing platform while maintaining a focus on operational efficiency, product quality, and customer experience.”
The company noted they might sell some of Columbia Care’s assets following the closing, depending on the regulatory review, “as part of ongoing portfolio optimization efforts.”
They will likely cut a lot of jobs of people doing things they already do, like HR, management, etc.
Cannabist Strategic Review Process of Bankruptcy Options
When they announced they were going bankrupt, they began formal legal proceedings to do so in Canada and the United States.
They set up a Special Committee to figure out what to do next.
According to a press release, “With support from external financial and legal advisers, the Special Committee thoroughly evaluated a range of options, including potential asset sales, mergers, or other strategic and financial transactions, in light of persistent operational and financial challenges facing both Cannabist and the broader industry.”
In May, a federal court allowed them to proceed with bankruptcy.
The Cannabist was among the 9 MSOs named by the Ohio Attorney General in a recent lawsuit alleging there is a national cartel/trust that is keeping the price of cannabis high and harming independent cannabis operators and consumers.
The NJ Cannabis Regulatory Commission (NJ-CRC) has fined Cannabist/Columbia Care in 2023 and 2025 for labor violations. They even threatened their license at one point.
They almost did a similar deal with the MSO Cresco Labs in the past. But the deal wasn’t sealed.
