Cresco Labs to acquire Col Care for $2B

In what would be one of the biggest cannabiz mergers yet, Chicago-based Cresco Labs said it would acquire Columbia Care for $2B in stock. The combined company would include more than 130 stores across 17 states, reaching more than half the U.S. population.
MJBiz

The combined company would:

Have a presence in “today’s most influential markets and those with the biggest tailwinds for growth and adult-use upside,” the companies said, citing New York, New Jersey, Virginia, Pennsylvania, Ohio, Maryland and Florida.
Have more than $1.4B in annual revenue, more than any of its MSO peers, and over 5,000 employees.

Columbia CEO Nicholas Vita will take a board seat and might have a management role in the future.

An analyst at Stifel GMP said the deal “may have considerable risk to close given the significant footprint overlap and Cresco Labs having a spotty track record with three terminated acquisitions.”
The companies want to close in Q4. Some divestitures will likely be necessary to accommodate state licensing rules.

Additional insights:

Consultant Mitchell Osak posted the three untested assumptions on which the deal’s success depends.
Dai Truong breaks down the numbers.
Cartoonist Brian Brown assembled a brand map for the combined company. (I counted more than 30.)

QUICK HITS

Federal:

Fifty years ago the federal Shafer Commission recommended decriminalizing marijuana. (It didn’t happen.)
The MORE Act to federally legalize could come up for another House vote next week. The House has passed it several times before.
NORML
American diplomats in Russia got access to Brittney Griner and said she’s in “good condition.” It’s not clear when she’ll be released.
CNN

Business:

Curaleaf Arizona asked a federal judge not to force it to reinstate a worker who a National Labor Relations Board judge found had been fired for unionization efforts.
Law360
Tracking software provider Metrc landed another state contract, South Dakota this time.
Canadian PotCos have lost billions of dollars.
Former WeedWeek California editor Donnell Alexander co-founded The Z&D Agency with music publicist Zenobia Simmons.

States:

In New Jersey, regulators delayed the expansion of eight MED shops to start selling REC. But they did approve 68 additional licenses.
NJ.com, Heady NJ
A California bill seeks to expand MED access.
SF Chronicle
Detroit’s city council postponed a vote on a revised REC ordinance.
Detroit News
Denver approved its first hospitality license.
NBC

Health and science:

In 2020, alcohol killed more Americans under 65 than Covid.
N.Y. Mag

Equity:

Anti-prohibition non-profit Law Enforcement Action Partnership received a “very generous” donation from MacKenzie Scott, ex-wife of Jeff Bezos.

IN THE WEEDS

The National Conference of State Legislatures has a new state law enactment database.
MJ Brand Insights highlights 12 brands with great packaging.
On the MJBiz podcast, former CEO Tripp Keber discussed life after pioneering early brand Dixie Elixirs, which is still around.
FlowerHire CEO David Belsky gives four reasons cannabiz non-compete agreements are a bad idea.
Green Entrepreneur

UPCOMING

Payments company Paybotic will award 3 $2,500 scholarships to women in fintech. Deadline is May 1.
Portugal-based MED company Piauhy is hosting a March 29 online conference on “The future of neurosciences and mental disorders.”
San Francisco is hosting the first Evergreen San Francisco festival April 16-24.
Biz Journals
Business Insider is hosting an April 25 webinar with 29-year old Vangst CEO Karson Humiston to discuss how she approaches investors.
Canna Law Blog has a dispatch from Spain.

PRODUCT NEWS

LinkedIn craft advocate Greg Welch launched Strong Mountain Farm, a NorCal farmer focused brand. (pictured)
Data shop BDSA introduced Rapid Retail Sales Tracking, which promises near real-time information.
Kiva Confections has a new “Everything Bagel Seasoning Munchies Bar” with LA food truck Yeastie Boys Bagels.
Odor absorber Cannabolish is now available in lavender.
Theralogix has a new TheraHemp CBD supplement.