Cannabist to redeem $25 million of 13% secured notes, cancels exchange

By Mary-Katherine Stinson

Lexington, Ky., Oct. 9 – Cannabist Co. Holdings Inc. issued a notice of partial redemption for its outstanding 13% senior secured notes due May 14, 2024, according to a press release.

On Oct. 23, $25 million of the total $38.2 million notes will be redeemed on a pro rata basis.

Holders will receive $1,010 per $1,000 principal amount of redeemed notes plus all accrued interest up to but excluding the redemption date.

All holders that surrender 13% notes to the company for redemption that are redeemed only in part will receive a new 13% note for the unredeemed part of the principal amount with no charge. All interest on the redeemed notes will cease to accrue on the redemption date.

The partial redemption follows the company’s Sept. 21 closing of a private placement for aggregate gross proceeds of about $25 million, for which the primary intended use of proceeds was debt reduction.

Odyssey Trust Co. is the trustee for the notes.

Following the redemption, Cannabist will have achieved an annualized reduction in interest of $3.25 million.

As a result, the company announced it no longer expects to complete its previously announced exchange of certain 13% notes for a later series of notes, citing its desire to ensure pro rata and equal treatment of all noteholders.

On Sept. 18, the company had said it was in continued discussions with certain holders of the 13% notes to exchange them into the company’s 9˝% senior secured notes due February 2026 on a one-for-one basis, as previously reported.

Based in New York, Cannabist is a cultivator, manufacturer and provider of medical and adult use cannabis products and related services with licenses in 18 U.S. jurisdictions and the European Union. The company was formerly known as Columbia Care Inc.

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