Hip-hop artist Sean “Diddy” Combs has agreed to acquire licensed marijuana operations from U.S. multi-state operators Cresco Labs ( OTCQX:CRLBF ), and Columbia Care ( OTCQX:CCHWF ) in a deal worth up to $185M, The Wall Street Journal reported Friday.
Adding to Mr. Combs’ business interests in fashion, media, and spirits, the transaction would create the largest Black-owned and licensed cannabis company in the U.S., subject to regulatory approvals.
Per the terms, a new business venture controlled by Mr. Combs will buy certain cannabis operations from Cresco Labs ( OTCQX:CRLBF ) and Columbia Care ( OTCQX:CCHWF ), which have agreed to divest assets in several states ahead of their planned merger.
Diddy’s company will buy nine retail stores and three production facilities in New York, Massachusetts, and Illinois for $110M in cash and $45M in debt financing, in addition to certain milestone payments based on market growth.
Noting that he decided to enter the cannabis market to help address long-running social inequities, Mr. Combs said he wants to use the business to improve Black participation in the industry.
In early October, President Joe Biden pardoned people convicted of all prior federal offenses for simple possession of marijuana and ordered U.S. regulators to review how the drug is classified.
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Sean ‘Diddy’ Combs to buy cannabis assets from Cresco Labs and Columbia Care - WSJ