Cresco Labs (CRLBF, +0.25% CL) announced on Monday the mutual agreement to terminate its merger agreement with Columbia Care (CCHWF, +0.02%). This decision comes after both companies initially announced the deal in March 2022.
The cannabis industry has been rapidly evolving, and in light of this changing landscape, Cresco Labs CEO Charles Bachtell stated that the termination of the planned transaction is in the long-term interest of Cresco Labs and its shareholders. Columbia Care CEO Nicholas Vita also expressed that this decision is the best path forward for shareholders.
In addition to terminating the merger agreement, the Nov. 4, 2022 agreement to divest New York, Illinois, and Massachusetts assets of Cresco Labs and Columbia Care to an entity owned and controlled by Sean "Diddy" Combs has also been terminated, effective July 28.
Unfortunately, on June 30, Cresco Labs and Columbia Care were unable to sell the units needed to complete the proposed merger deal.
Despite this setback, both companies remain committed to navigating the ever-changing cannabis industry and exploring new opportunities for growth.