(Cresco Labs) Cannabis stocks gained strengths on Wednesday after pot producer Cresco Labs said it was buying all the issued and outstanding shares of Columbia Care Inc.
The deal, agreed at approximately $2 billion, is expected to close in the fourth quarter of 2022
Columbia care shareholders will get 0.5579 of a subordinate voting share of Cresco for each common share they own in the company.
The deal gives Columbia shareholders a premium of about 16% based on the closing price of the company shares and Cresco shares, each on the CSE as of March 22, 2022. The deal is also at a premium of 19% based on the 20-day volume-weighted average prices of both entities’ shares on the same closing.
CL is down -3.66%, CCHW is up +1.02%, TLRY is up +8.71%.
