Sean “Diddy” Combs plans to break down barriers as he makes his debut into the cannabis space.
The acquisition will impact three states: According to a press release sent to AfroTech, Diddy has entered into an agreement with Cresco Labs and Columbia Care to acquire licensed marijuana operations in the following states:
- New York
Deal Valued At Nearly $185M
The deal is valued at an estimated $185 million, composed of an estimated $110 million in cash and $45 million of seller notes.
The press release also shares that “the remaining portion of the Purchase Price would be payable post-closing upon achievement of certain short-term, objective, and market-based milestones.”
Cresco Labs is one of the largest public cannabis companies in the world. They plan to “develop the most responsible, respectable and robust industry possible,” with the help of Combs.
Statement From Cresco Labs
“Today’s announcement is bigger than the Transaction – and it couldn’t come at a time of greater significance and momentum. We’ve seen executive power exercised to address matters of cannabis injustice, we’re seeing bi-partisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility – this announcement adds to that momentum,” said Charles Bachtell — Cresco Labs’ CEO — in a press release. “For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future. For an industry in need of greater diversity of leadership and perspective, the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous…and incredibly exciting. We’re thrilled to welcome Sean and his team to the industry.”
The Deal Will Create The Largest Black-owned And Licensed Cannabis Company
What’s more, Diddy’s investment would pave the way for the largest Black-owned and licensed cannabis company in the world. Diddy plans to open doors for Black entrepreneurs and underrepresented groups to take root in the cannabis sector by providing opportunity and employment.
To work toward a more diverse industry, he will also collaborate with regulators, politicians, and cannabis executives.
More of his efforts include:
- Fight for restorative justice and community development efforts
- Build a diverse team
- Promote health and wellness in diverse communities
- Shape cannabis culture
- Set the standard for brands
- Bridging the culture to the mainstream
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Diddy, Chairman and CEO of Combs Enterprises, in a press release.
He continued: “Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”
Note: Finalizing the deal will be contingent upon “certain closing conditions in the definitive agreements, including the receipt of all required regulatory approvals; clearance under the Hart-Scott-Rodino Antitrust Improvements Act; and the closing of the Columbia Care Acquisition,” according to the press release.