Spherex to Acquire Two Colorado Cultivation Facilities in First Deal

On October 6, 2026, Spherex announced an agreement to acquire two Colorado cultivation facilities from The Cannabist Company and its affiliates The Green Solution and Rocky Mountain Tillage, a transaction the company described as its first acquisition.

The expansion includes a Denver-area indoor cultivation facility and an outdoor cultivation operation in Trinidad, Colorado. The transaction is part of The Cannabist Company’s ongoing business restructuring. Spherex said the acquisition will more than double its workforce, with approximately 60 employees across the two facilities expected to join and the company growing to nearly 100 employees.

Spherex said it will retain the existing leadership of the cultivation operations to oversee day-to-day work and that it expects the facilities to operate under the Spherex umbrella once the transaction is completed. Customers are not expected to see immediate changes and will continue working with the same Spherex sales teams, products and points of contact, according to the company.

Supply-Chain Rationale

Spherex has sourced cannabis material from The Green Solution for years, a relationship the company said gave it firsthand familiarity with the quality and consistency of the facilities’ output. Bringing cultivation in-house will give Spherex greater visibility and control across its supply chain while supporting more consistent access to the material used in its products, the company said.

The company tied the acquisition to conditions in Colorado’s cannabis supply chain, citing declining cultivation capacity that it said has contributed to greater volatility in the availability, cost and compliance of raw material. Spherex said it experienced those pressures firsthand earlier this year, when supply constraints created production backups and delayed orders. The company said in-house cultivation will help it maintain the operational efficiency and product availability that have become hallmarks of the Spherex brand.

“We know these facilities, we know the quality of the material they produce and we know many of the people behind them,” said Dan Gardenswartz, president of Spherex. Gardenswartz said the move follows 11 years of deliberately building the business with focus and financial discipline while forming strong relationships across Colorado’s cannabis industry, positioning the company to act when the opportunity became available. He said the company is investing in the long-term success and prosperity of its industry in a way that directly benefits its business, its peers, its customers and the State of Colorado.

Chief Strategy Officer Ryan Hunter said greater supply-chain stability means greater consistency in the products Spherex makes and greater confidence those products will be available when customers want them, along with flexibility to explore new products and categories as opportunities emerge. Hunter said the facilities have talented teams already doing good work, that the operations do not need to be rebuilt from scratch, and that the transaction allows that work to continue within the culture Spherex has built.

Spherex also said the acquisition does not diminish the value of its longstanding relationships with independent Colorado cultivators. The company expects to keep working with cultivation partners as it integrates the new facilities, balancing internally produced material with material sourced from the broader Colorado market. “This acquisition gives us another source of predictability and stability in our supply chain,” Hunter said.

The Cannabist Company’s Restructuring

The Cannabist Company Holdings Inc. announced on March 24, 2026 that it and The Cannabist Company Holdings (Canada) Inc. had commenced voluntary proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List), and that it intended to commence Chapter 15 proceedings in the United States Bankruptcy Court in the District of Delaware, according to the company’s announcement. The company said it entered the proceedings to support completion of a set of strategic transactions and a planned remaining-markets transaction, to preserve liquidity, and to facilitate an orderly wind-down of operations in markets not covered by those transactions, including New York and Pennsylvania. The steps continued a strategic review initiated by a special committee of independent directors, the company said.

On March 23, 2026, the company and certain subsidiaries entered two definitive agreements. Under the first, Holistic Industries Inc. agreed to acquire all issued and outstanding equity interests of the company’s Ohio cannabis subsidiaries for total consideration of $47 million, consisting of $34.5 million in cash payable at closing and a $12.5 million promissory note issued by Holistic, subject to adjustment, court approval and other customary closing conditions. Under the second, Parma Holdco LLC agreed to acquire substantially all assets of the company’s Delaware cannabis subsidiary for $16.5 million in cash, subject to adjustment and similar conditions. At the time of the announcement, the company expected the Ohio transaction to close in the third quarter of 2026 and the Delaware transaction in the second quarter of 2026.

The company also entered a non-binding memorandum of understanding indicating its intention to finalize definitive documentation to sell certain equity interests in and assets of subsidiaries operating in Colorado, Illinois, New Jersey, West Virginia, Massachusetts and Maryland, and said it was working to finalize that documentation.

The March announcement followed the company’s sale of its Virginia subsidiary, Green Leaf Medical of Virginia LLC, to Parma for total consideration of $130 million under a definitive agreement reached on December 2, 2025. That transaction closed on February 5, 2026, and the company redeemed $84,488,000 in aggregate principal of its 9.25% senior secured notes due December 31, 2028 and $6,469,000 in aggregate principal of its 9.0% senior secured convertible notes due the same date.

The company said it obtained an initial order from the Ontario court providing a stay of proceedings for an initial period of ten days and appointing FTI Consulting (FCN ) Canada Inc. as monitor, with management continuing to direct day-to-day operations under the monitor’s supervision. SierraConstellation Partners LLC was appointed chief restructuring officer, subject to court approval. The company said it had ceased operations in New York and was in the process of ceasing operations in Pennsylvania, and that it anticipated trading of its shares on Cboe Canada Inc. would be halted, with the company subject to a delisting review. Senior secured noteholders collectively holding more than 60% of the aggregate principal amount of the company’s outstanding notes entered a support agreement backing the transactions and the proceedings, the company said.