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Cresco Acquires Bluma For $213M, Extends 'Strategic Footprint' To Florida Market

January 14, 2021 11:44 am
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Cresco Acquires Bluma For $213M, Extends 'Strategic Footprint' To Florida Market

Cannabis company Cresco Labs Inc. (CSE:CL) (OTCQX: CRLBF) is poised to take over Florida-based Bluma Wellness Inc. (CSE:BWEL) (OTCQX:BMWLF) in an all-share transaction worth $213 million.

The Chicago-based company agreed to acquire all Bluma’s issued and outstanding shares, while Bluma’s shareholders will obtain 0.0859 of Cresco’s subordinate voting share for each Bluma share held.

Each Bluma share is priced at $1.12.

The closing of the acquisition is subject to the Bluma shareholder’s approval, as well as receipt of approval from the Canadian Securities Exchange (CSE) and regulators.

Investment bank Cowen & Co. (NASDAQ:COWN) is advising Cresco Labs on the deal, while law firm Bennett Jones LLP handles legal matters.

Clarus Securities Inc., INFOR Financial Inc. and Gowling WLG (Canada) LLP have advised Bluma on the sale process. 

The deal brings to Cresco seven strategically located One Plant Florida dispensaries and eight additional retail locations poised to launch.

Cresco Labs CEO Charles Bachtell said Thursday that, with Florida, the company 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.”

“Our management team took the responsibility to seriously assess potential partners, and we’re thrilled to be joining an organization that aligns operationally and shares our passion for creating quality cannabis products,” Bluma CEO Brady Cobb said.

According to its latest earnings report, the medical cannabis company reported a 47.7% increase in revenue. For the third quarter, the revenue amounted to $3.2 million.