Cresco Labs, a multi-state cannabis operator, has agreed to acquire all of the issued and outstanding shares of Bluma Wellness Inc. in an all-share transaction that values Bluma Wellness at an equity value of $213 million, the two companies said Thursday. Bluma operates a vertically-integrated, licensed medical cannabis company in Florida.
Under the terms of the transaction, shareholders of Bluma will receive 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held by them. The exchange ratio implies a price per Bluma share of about $1.12, representing a nearly 29 percent premium based on the closing price of Bluma shares on the CSE as of January 13, 2021.
The transaction will be completed by way of plan of arrangement. The companies expect the transaction to be completed by the start of the second quarter of 2021.
“With Florida, we will have a meaningful presence in all 7 of the 10 most populated states in the country with cannabis programs – an incredibly strategic and valuable footprint by any definition. We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth,” said Charles Bachtell, CEO of Cresco Labs.
Bluma Wellness, under its operating subsidiary “One Plant Florida”, has seven strategically located dispensaries, with eight more locations under legal control and planned to open. The company also has 54,000 sq. ft. of cultivation space, with planned expansion of cultivation capacity, processing lab, and edibles kitchen.
Florida is the third most populous state in the U.S. with 21.7 million people. The state has more than 450,000 registered patients in the medical marijuana program.
Source: Read Full Article