Colorado Cannabis Retailer Native Roots Acquired
Verdant Partners has entered a definitive agreement to acquire the seventeen Colorado dispensaries of Native Roots. The deal marks a significant consolidation in one of the nation's oldest legal cannabis markets, uniting two major players in the state's retail landscape.
The acquisition of Native Roots by Verdant Partners comes as Colorado's cannabis market, the nation's oldest, faces a significant downturn. After peaking at $2.2 billion in 2021, total cannabis sales in the state fell to approximately $1.5 billion in 2023 and are on track for a seven-year low in 2024. This decline is largely attributed to market saturation, increased competition from newly legalized states, and a significant drop in wholesale cannabis prices. This deal is a homecoming of sorts for Native Roots co-founder Josh Ginsberg, who is now a Co-Founder and Chief Growth Officer at Verdant Capital Partners. Ginsberg founded Native Roots in 2009 and grew it into one of Colorado's largest dispensary chains before his exit. His return through this acquisition signals a strategic move by a seasoned operator within the Colorado market. Verdant Capital Partners is led by a team of experienced cannabis entrepreneurs, including CEO Julian Michalowski. Michalowski previously founded and led Coastal Holding Company, a California cannabis business he grew to approximately $100 million in sales before its successful $65 million sale. Verdant's stated focus is on acquiring established cannabis retail businesses and enhancing their operational efficiency and profitability. The move to acquire Native Roots is indicative of a broader trend of consolidation within Colorado's cannabis industry. In a similar deal in late 2025, Vireo Growth acquired 17 dispensaries from PharmaCann for approximately $49 million. Other major players like Schwazze have also been actively acquiring smaller dispensary groups and cultivation operations throughout the state. While financial terms of the Native Roots acquisition were not publicly disclosed, the transaction provides a path forward for the seventeen dispensaries under new ownership. For Verdant, the acquisition is a significant foothold in a mature, albeit challenging, market. The company's leadership has a track record of scaling cannabis businesses in complex regulatory environments. The new leadership at Native Roots will likely focus on streamlining operations and improving profit margins in a market where they have become razor-thin. Julian Michalowski, Verdant's CEO, is known for a retail model that optimizes cost structures and supplier negotiations to increase profitability. This acquisition is not just a business transaction but a strategic maneuver in a buyer's market. As Colorado's cannabis industry continues to mature and consolidate, the players with deep operational experience and strategic capital are positioned to reshape the retail landscape.
