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Vertically integrated cannabis company Cresco Labs (CSE:CL) (OTCQX:CRLBF) has taken over Bluma Wellness Inc. (CSE:BWEL) (OTCQX:BMWLF) in an all-stock transaction.
The Chicago-based company announced Wednesday it has closed the previously announced deal to purchase the cannabis retailer for $213 million.
Transaction Details: Under the terms of the agreement, Cresco obtained 184,814,281 Bluma shares, or all of its issued and outstanding shares.
Each Bluma share was equal to 0.0859 of one of Cresco’s subordinate voting shares. The Florida-based company received 15,875,449 Cresco shares in return.
Clarus Securities Inc., INFOR Financial Inc., and Gowling WLG (Canada) LLP were Bluma’s advisors for the sale transaction, Cresco said earlier.
Why It Matters: The acquisition allowed Cresco to enter the Florida medical cannabis market, bringing its operational footprint to ten states.
Bluma’s Florida assets include eight operational dispensaries and seven additional retail locations that are either in permitting and/or in a build-out phase, as well as 54,000 square feet of cultivation in Indiantown, which is under expansion.
“The closing today represents yet another strategic acquisition in a top-5 market that is true to our strategy – building the most strategic geographic footprint and achieving material market share positions within each state,” Charlie Bachtell, the company’s CEO and co-founder, said in a statement.
What’s Next: Bluma shares are expected to delist from the Canadian Securities Exchange following the close of trading on Wednesday, April 14.
Cresco is pursuing “one of the largest absolute growth opportunities among cannabis markets.”
According to the Florida Office of Medical Marijuana, Florida has over 525,000 medical cannabis patients.
“We look forward to amplifying operations and executing our playbook in Florida this year and in the years to come,” Bachtell added.
Shares of Cresco traded down 0.66% at the time of the writing of this article.
Photo by Kimzy Nanney on Unsplash
