Marijuana multistate operator Curaleaf Holdings will enter the Virginia market with the purchase of competitor The Cannabist Company Holdings’ assets in the state, the companies announced Tuesday.
For $110 million, Curaleaf will acquire a vertically integrated medical marijuana license in the state — where adult-use sales could launch in November 2026.
The purchase includes five retail dispensaries, the right to open a sixth and an 82,000-square-foot cultivation canopy near Richmond that’s owned by a subsidiary of The Cannabist Co.
The sale announcement is the latest move made by The Cannabist Co., formerly known as Columbia Care, after company leadership formed a special committee to explore mergers or other major moves amid market struggles.
Curaleaf to enter Virginia marijuana market ahead of adult-use sales
According to a company press release, the purchase price consists of $80 million in cash up front, $20 million to be paid within 30 days and a $10 million promissory note at 6% interest.
If the transaction closes in the first quarter of 2026 as expected, Curaleaf will acquire Green Leaf Medical of Virginia, the legal entity that holds Cannabist’s regional license in the state.
Virginia law limits medical marijuana to no more than five vertically integrated licenses, each assigned to a geographic region.
The Cannabist Co. plans to use the proceeds from the purchase to pay down debt, the company said in a press release.
Last year, the company announced a debt restructuring deal that will see some loans scheduled to come due in 2026 and 2027 mature at the end of 2028 instead.
In August, Cannabist sold off its three medical cannabis dispensaries in Pennsylvania to focus instead on wholesaling, according to a release.
Virginia adult-use cannabis market poised for growth
With 8.6 million residents, Virginia could be one of the biggest new cannabis markets to open in some time.
It’s not yet clear whether existing operators will be prioritized or whether Virginia regulators will favor small businesses.
The state reported nearly $30 million in sales in July and August, the first two months of state-mandated track-and-trace monitoring.
Adult-use cannabis sales could reach $780 million in the first full year of sales and exceed $1.09 billion by the second year, according to the MjBiz Factbook.
According to a 2020 study commissioned by state lawmakers, Virginia could support between:
- 100 and 800 cultivation permits
- 30 and 150 processing or distribution licenses
- 200 and 600 retail licenses
The other four existing medical marijuana permits are held by:
- Miami-based MSO Ayr Wellness, which has yet to open a dispensary and recently sold off assets, including the Virginia permit, to creditors.
- Boca Raton, Florida-based Jushi
- Chicago-based Green Thumb Industries
- Chicago-based Verano Holdings Corp.
