Cresco Labs to Become the New Leader in Cannabis with the Acquisition of Columbia Care

Cresco Labs to Become the New Leader in Cannabis with the Acquisition of Columbia Care
CANNANNEW REPORT

Transformational deal will combine best-in-class wholesale, retail and operations with an expanded strategic footprint in the largest and fastest growing markets in cannabis CHICAGO–(BUSINESS WIRE)–Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”) and Columbia Care Inc. (NEO:CCHW) (CSE:CCHW) (OTCQX:CCHWF) (“Columbia Care”) announced today they have entered into a definitive arrangement agreement (the “Arrangement Agreement”) pursuant to which Cresco Labs will acquire all of the issued and outstanding shares (the “Columbia Care Shares”) of Columbia Care (the “Transaction”). Subject to customary closing conditions and necessary regulatory approvals, the Transaction is expected to close in the fourth quarter of 2022. Under the terms of the Arrangement Agreement, shareholders of Columbia Care (the “Columbia Care Shareholders”) will receive 0.5579 of a subordinate voting share of Cresco Labs (each whole share, a “Cresco Labs Share”) for each Columbia Care common share (or equivalent) held, subject to adjustment (the “Consideration”) representing total consideration enterprise value of approximately US$2.0 billion based on the closing price of Cresco Labs Shares on the Canadian Securities Exchange (the “CSE“) as of March 22, 2022. The Transaction provides Columbia Care Shareholders with premiums per Columbia Care Share of approximately 16% based on the closing prices of the Columbia Care Shares and the Cresco Labs Shares, and (ii) 19%, based on the 20-day volume weighted average prices (“VWAP”) of the Columbia Care Shares and the Cresco Labs Shares, each on the CSE as of March 22, 2022. After giving effect to the Transaction, Columbia Care Shareholders will hold approximately 35% of the pro forma Cresco Labs Shares (on a fully diluted in-the-money, treasury method basis). Key Transaction Highlights and Benefits Superior Market Access Largest Multi-State-Operator (“MSO”) by pro-forma revenue – Gives Cresco Labs the largest pro-forma revenue in cannabis today at over $1.4 billion.1 Strategic, national footprint – Over 130…

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Source : Cresco Labs to Become the New Leader in Cannabis with the Acquisition of Columbia Care

reposted by Cannabis News World

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