Bluma Wellness Obtains Final Order Approving Arrangement with Cresco Labs
Bluma Wellness Inc. (CSE: BWEL.U, OTCQX: BMWLF) has secured a final order from the Supreme Court of British Columbia for its acquisition by Cresco Labs Inc. through a plan of arrangement. Following this, Bluma Shareholders will receive 0.0859 subordinate voting shares of Cresco for each Bluma Share held. The arrangement, approved on March 19, 2021, is still pending regulatory approval from the Florida Department of Health Office of Medical Marijuana Use. Bluma operates a licensed medical cannabis business in Florida under the name 'One Plant Florida'.
- Acquisition by Cresco Labs approved, indicating strategic growth.
- Shareholders to receive Cresco shares, providing potential value.
- Pending regulatory approval from Florida, which may delay the acquisition.
- Cannabis remains illegal under US federal law, posing ongoing risks.
Bluma Wellness Inc. (the “Company” or “Bluma Wellness”) (CSE: BWEL.U) (OTCQX:BMWLF) is pleased to announce that the Company has obtained a final order of the Supreme Court of British Columbia approving the previously announced acquisition of the Company by Cresco Labs Inc. (“Cresco”), by way of a plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”).
If the Arrangement is completed, Cresco will, among other things, acquire all of the issued and outstanding common shares in the capital of the Company (each a “Bluma Share”), in exchange for which holders of Bluma Shares (“Bluma Shareholders”) will receive 0.0859 of a subordinate voting share of Cresco for each Bluma Share held, subject to adjustment in accordance with the terms of the Arrangement.
The Arrangement was approved by the Bluma Shareholders at the special meeting of Bluma Shareholders held on March 19, 2021. The completion of the Arrangement remains subject to a number of conditions, including but not limited to the receipt of regulatory approval of the Florida Department of Health Office of Medical Marijuana Use.
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 completion of the Arrangement, the acquisition of the Bluma Shares by Cresco, and the consideration to be received by Bluma Shareholders in exchange for their Bluma Shares pursuant to the Arrangement. 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 depending on, among other things: the ability of Bluma Wellness and Cresco to receive, in a timely manner, the regulatory, stock exchange and other third-party 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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FAQ
What acquisition has Bluma Wellness Inc. completed?
What will Bluma Shareholders receive from the acquisition?
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