Cannabis companies Cresco Labs and Columbia Care announced Monday that their $2 billion merger, which was announced in March last year, has been amicably terminated.
Cresco Labs CEO Charles Bachtell said the decision was made to serve the long-term interest of the company and its shareholders “in light of the evolving landscape in the cannabis industry.”
“While this is not the outcome we originally hoped for, we are confident Cresco Labs is in a stronger position moving forward,” he said.
The two companies said last month that they were not able to complete the divestitures required to secure regulatory approvals to close the transaction.
There were no penalties or fees related to the termination.
Additionally, the $185 million deal to divest certain New York, Illinois, and Massachusetts assets of Cresco and Columbia to an entity owned and controlled by Sean “Diddy” Combs has been terminated.
Following the announcement, Cresco Labs shares were up 4.4% at US$1.64 and Columbia Care shares gained 5.7% at US$0.44.
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