The Cannabist Company Announces Closing of US$25.75 Million Private Placement Offering of 9% Senior Secured Convertible Debentures Due 2027

The Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQX: CBSTF) (FSE: 3LP) (“The Cannabist Company” or the “Company”) announced today that it has completed a private placement of US$19.5 million aggregate principal amount of 9.00% senior secured convertible debentures due 2027 (the "Notes") in a concurrent private brokered offering (the “Brokered Offering”) and private non-brokered offering (the “Non-Brokered Offering” and together with the Brokered Offering, the “Offering”).

In addition, in accordance with the terms of a previously executed agreement, as amended, the Company has issued US$6.25 million of Notes in exchange for the cancellation of previously issued 6% senior secured convertible notes due 2025 held by certain offshore institutional investors.

The Notes are senior secured obligations of the Company and mature in March 2027, unless earlier converted or repurchased. The conversion rate is 3,278.6 common shares in the capital of the Company ("Common Shares") per US$1,000 principal amount of Notes (equivalent to a price of approximately US$0.305 per Common Share), subject to customary adjustments. In no event will fractional common shares be issuable. The conversion price of the Notes represents a premium of approximately 25% over the closing price of the Common Shares on the Cboe Canada (the “Exchange”) on March 14, 2024. The Notes are subject to an original issue discount and priced at US$800 per issuance of US$1,000 in principal amount of new Notes. As a result, the Company has received US$15.6 million of new capital and has extinguished US$5.0 million of 6% Senior Secured Convertible Notes Due 2025. Subsequent to this transaction, there are US$59.5 million remaining 6% Senior Secured Convertible Notes Due 2025. In connection with the Offering, the Company and the investors have entered into customary registration rights agreements.

The Notes were offered for sale on a private placement basis in certain provinces and territories of Canada pursuant to applicable exemptions from the prospectus requirements of Canadian securities laws. The Notes were also sold in the United States to or for the account or benefit of "U.S. persons" (as defined in the United States Securities Act of 1933, as amended) (the "U.S. Securities Act"), on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act, and in such jurisdictions outside of Canada and the United States as agreed upon by the Company, in each case in accordance with applicable laws. The Notes issued in certain provinces and territories of Canada are subject to a customary four-month hold period under Canadian securities laws.