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Cresco Labs has announced the expiration of the 30-day waiting period under the HSR Act, a significant milestone in its acquisition of Columbia Care. CEO Charles Bachtell emphasized the benefits of leveraging Cresco's leading cannabis portfolio across a wider market, particularly in the ten states projected for substantial revenue growth by 2025. The transaction, initially detailed in March 2022, is still subject to shareholder approval and other regulatory conditions, with both companies aiming for a year-end closing. Cresco Labs ranks as the largest wholesaler of branded cannabis products in the U.S.
Positive
Expiration of the 30-day waiting period under the HSR Act brings Cresco Labs closer to acquiring Columbia Care.
Cresco Labs can leverage its best-selling cannabis portfolio across multiple states, targeting significant revenue growth.
The acquisition positions Cresco Labs to operate in all ten states projected for the highest cannabis revenue in 2025.
Negative
The transaction is still subject to shareholder approval and other regulatory conditions.
CHICAGO--(BUSINESS WIRE)--
Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”) and Columbia Care Inc. (NEO:CCHW) (CSE:CCHW) (OTCQX:CCHWF) (FSE:3LP) (“Columbia Care”), today announced the expiration of the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) in connection with Cresco Labs’ previously announced proposed acquisition of Columbia Care (the “Transaction”).
“Completion of the HSR milestone is a major step towards closing the acquisition of Columbia Care. We’ve been concurrently working on our divestiture process and working with our state regulators to align with our previously disclosed estimated closing timeline of year-end,” said Charles Bachtell, CEO of Cresco Labs. “With this acquisition, we will be able to leverage our best selling cannabis portfolio1 across the most exciting footprint in cannabis and further develop our leading positions with exposure to all ten of the largest projected revenue states in 2025, according to BDSA.”
On March 23, 2022, Cresco Labs announced the execution of a definitive Arrangement Agreement (the “Agreement”) to acquire all of the issued and outstanding shares of Columbia Care. Details of the Agreement can be found [here]. The closing of the Transaction remains subject to the satisfaction of all remaining closing conditions in the Agreement, including the Columbia Care shareholder vote. Both companies continue to work towards obtaining all required regulatory approvals.
1 Cresco, as a standalone entity holds the #1 position in flower, vape and concentrates according to BDSA
About Cresco Labs Inc.
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. Employing a consumer-packaged goods (“CPG”) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprised of some of the most recognized and trusted national brands including Cresco, High Supply, Mindy's Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.
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. Columbia Care operates 131 facilities including 99 dispensaries and 32 cultivation and manufacturing facilities, including those under development. Columbia Care is one of the original multi-state providers of medical cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the company launched Cannabist, its new retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, gLeaf, Classix, Press, Amber and Platinum Label CBD. For more information on Columbia Care, please visit www.col-care.com.
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to each party’s expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs and include statements regarding Cresco Labs and Columbia Care’s expected financial performance, the combined operations and prospects of Cresco Labs and Columbia Care, the current and projected market and growth opportunities for the combined company, and the timing and completion of the transaction, including all the required conditions thereto. Words such as “expects”, “continue”, “will”, “anticipates” and “intends” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on Cresco Labs and Columbia Care’s current projections and expectations about future events and financial trends that they believe might affect their financial condition, results of operations, prospects, business strategy and financial needs, and on certain assumptions and analysis made by each party in light of the experience and perception of historical trends, current conditions and expected future developments and other factors each party believes are appropriate. Forward looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements to be materially different from future events, results, performance, and achievements expressed or implied by forward looking information and statements herein, including, without limitation, the risks discussed under the heading “Risk Factors” in Cresco Labs Annual Report on Form 40-F for the year ended December 31, 2021, filed with the SEC on EDGAR, Columbia Care’s Form 10-K for the year ended December 31, 2021 and Columbia Care’s Form 10 dated May 9, 2022, filed with the SEC on EDGAR and other documents filed by Cresco Labs and Columbia Care with Canadian and U.S. securities regulatory authorities on SEDAR and EDGAR, respectively. Although Cresco Labs and Columbia Care believe that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, Cresco Labs and Columbia Care assume no obligation and disclaim any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise.
