Last year, it was reported that Cresco Labs, a cannabis wholesaler, and Columbia Care intended to sell their New York, Illinois, and Massachusetts assets to Sean “Diddy” Combs and once completed, the deal will be worth $185,000,000. Sadly, according to Benziga, the deal will not take place.
Cresco Labs and Columbia Care announced on July 30, 2023, that the planned merger that was agreed upon last year on March 23, 2022, and then amended earlier this year on February 27, 2023 have been mutually terminated.
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction,” said Charles Bachtell, CEO and co-founder of Cresco Labs in a written statement.
Based on the companies negating the planned merger, this, in effect has thwarted Diddy’s intention of becoming thecountry’s first Black-owned and operated, vertically integrated multi-state cannabis operator. It was also reported that the agreements that were signed on November 4, 2022, to divest the New York, Illinois and Massachusetts assets of Cresco and Columbia Care to an entity that would have been owned and controlled by the Combs Enterprises owner were also terminated. That became effective last week on July 28, 2023.
It was a blow to Diddy who stated last year that he was trying to build a business for Black people in the cannabis industry.
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Diddy, Chairman and CEO Combs Enterprises in a written statement when the deal was originally announced last November.
This would have been Diddy’s first investment in the industry. Combs Enterprises already has properties under the umbrella which includes Sean John, Capital Prep, AQUAhydrate, Combs Wines and Spirits (Ciroc, DeLeon Tequilla), Empower, and Revolt.