Bluma Wellness Inc. Announces Expiration of HSR Act Waiting Period for Its Proposed Acquisition By Cresco Labs
Bluma Wellness Inc. (CSE: BWEL.U, OTCQX: BMWLF) has announced the expiration of the waiting period under the HSR Act for its acquisition by Cresco Labs (CSE: CL, OTCQX: CRLBF). The transaction is expected to close in Q2 2021, pending various regulatory approvals. CEO Brady Cobb expressed excitement about the merger, which aims to advance expansion plans in Florida. Bluma operates a licensed medical cannabis business, 'One Plant Florida,' providing retail and delivery services to patients. The company continues to focus on growth in the evolving Florida cannabis market.
- Acquisition by Cresco Labs brings potential for strategic growth and market expansion.
- Expiration of HSR waiting period indicates progress towards closing the transaction.
- Bluma's strong operational framework with 'One Plant Florida' positions it well within Florida's cannabis market.
- The acquisition still requires multiple regulatory approvals, which could delay closure.
- Risks associated with cannabis legality under US federal law may impact the transaction and operations.
- Dependence on timely approvals from various entities introduces uncertainty.
Bluma Wellness Inc. (the “Company” or “Bluma Wellness”) (CSE: BWEL.U) (OTCQX:BMWLF) announces today the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”), as amended, in respect of the pending acquisition of all of the issued and outstanding common shares of the Company by Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs”) by way of a plan of arrangement under Division 5 of Part 9 of the Business Corporations Act (British Columbia) (the “Transaction”). The waiting period expired without the issuance of a so-called “second request” by the United States Department of Justice Antitrust Division (the “DOJ”). The Transaction is anticipated to close in the second quarter of 2021, subject to the receipt of all required court, shareholder, third-party, stock exchange and regulatory approvals, including approval from the State of Florida Department of Health Office of Medical Marijuana Use, and the satisfaction or waiver of all applicable conditions to closing.
“We are excited to be one step closer to bringing the Cresco Labs and Bluma Wellness teams together to execute on our aggressive expansion plans in Florida,” said Brady Cobb, CEO of Bluma Wellness. “We look forward to completing the remaining steps required to close the Transaction.”
About Bluma Wellness Inc.
Bluma Wellness Inc. owns and operates a vertically-integrated, licensed medical cannabis company in the State of Florida doing business as “One Plant Florida.” One Plant Florida cultivates, processes, dispenses and retails medical cannabis to qualified patients in the State of Florida through multiple retail dispensaries and an innovative next-day door-to-door e-commerce home delivery service, thereby offering convenient access for its customers and meeting the demands of an evolving retail landscape. Bluma Wellness plans to continue expanding its cultivation and distribution operations as the Florida market grows.
Additional Information
The Company’s securities have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States or to a U.S. Person absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws including information relating to the Transaction, the anticipated timing of closing of the Transaction and the Company’s strategic business plans. Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements due to a variety of known and unknown risks and uncertainties including, without limitation: the ability of Bluma Wellness and Cresco Labs to receive, in a timely manner, the court, shareholder, third-party, stock exchange and regulatory approvals necessary to consummate the Arrangement; actions taken by government entities or others seeking to prevent or alter the terms of the Arrangement; risks relating to cannabis being illegal under US federal law and risks of US federal enforcement actions related to cannabis activities; the Company's ability to comply with all applicable governmental regulations in a highly regulated business; negative changes in the political environment or in the regulation of medical cannabis in the state of Florida; the risk of any disruptions to the Company’s business and operations as a result of the COVID-19 pandemic; negative shifts in public opinion and perception of the cannabis industry and cannabis consumption; increasing competition in the industry; risks of product liability and other safety-related liability as a result of usage of the Company’s cannabis products; the Company’s limited operating history with no assurance of profitability; the ability of the Company to access future financing if needed or on terms acceptable to the Company; the risk of defaulting on its existing debt; risk of shortages of or price increases in key inputs, suppliers and skilled labor; the risks inherent in running agricultural operations such as pests and crop failure; loss of licenses; reliance on key personnel; cybersecurity risks; constraints on marketing products; fraudulent activity by employees, contractors and consultants; tax and insurance related risks and risk of litigation.
The forward-looking information in this press release are made as of the date of this release. The Company does not undertake any obligation to update forward-looking information except as required by applicable securities laws.
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