Cresco Labs to acquire Columbia Care

On March 23, 2022, Cresco Labs (“Cresco Labs”) and Columbia Care Inc. (“Columbia Care”) announced that they entered into a definitive arrangement agreement under the Business Corporations Act (British Columbia) pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Columbia Care.

Under the terms of the arrangement agreement, shareholders of Columbia Care 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 representing a total consideration enterprise value of approximately US$2 billion.

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).

The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions and the receipt of all necessary approvals, including from: the Supreme Court of British Columbia; two-thirds of the votes cast by Columbia Care shareholders at the special meeting expected to be held in the second quarter on 2022; and the receipt of required regulatory approvals such as those under the Hart–Scott–Rodino Antitrust Improvements Act.

Further information can be found on Business Wire’s website.

Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of cannabis products and related services, with licenses in 18 U.S. jurisdictions and the EU. It operates 131 facilities including 99 dispensaries and 32 cultivation and manufacturing facilities, including those under development.

Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry.