California: Central Coast cannabis business to sell for $56 million

CalCoast News reports

Following the battle for a limited number of retail cannabis permits in Santa Barbara and San Luis Obispo counties that included background checks, interviews and a variety of specific requirements, multiple winners sold their permitted businesses, the latest for $56 million.

Recently under a sales contract, Coastal Holding Company operates five pot shops, including Coastal Dispensary in downtown Santa Barbara, along with two of their Coastal Delivery services, one in Santa Barbara and the other in San Luis Obispo. Founded in 2018, Coastal secured their retail permits during the past two years.

The Parent Company, a cannabis company backed by rapper Jay-Z, is set to purchase Coastal for $16 million in cash, $20 million in stock and another $20 million in stock contingent on transferring the varied cannabis licenses. The deal is expected to be finalized in 2022.

In selecting Coastal Dispensary for one of three coveted pot shop permits in the city of Santa Barbara, the city gave it points for being a Santa Barbara-based business. One of the other three pot shops permitted in 2019, Golden State Greens, sold in 2020 to a Florida company.

Coastal Delivery SLO was the first cannabis business permitted to operate in San Luis Obispo, even though it had not complied with several requirements. City staffers said a department head told them to allow the pot delivery service to continue operating even though their temporary certification of occupancy had expired.

Central Coast cannabis business to sell for $56 million