Parallel is poised to go public after agreeing to a $1.9 billion sale.
Ceres Acquisition Corp. CERAF, a special purpose acquisition corporation (SPAC), has acquired the Atlanta-based brand with the intention of creating a new publicly-traded company.
A group of investors, led by Ceres and Parallel, agreed to take part in the transaction via a $225 million over-subscribed private investment in public equity.
The company's shares will be issued at $10 per share before the closing of the deal.
Parallel plans to utilize the proceeds to fund its growth and expansion within the market.
The combined entity will have a $430 million cash balance at closing and net revenues of $447 million in 2021.
It will operate 42 brick-and-mortar dispensaries across five states, including Florida, Pennsylvania, Massachusetts, Texas, and Nevada.
Parallel's Beau Wrigley will remain chair and CEO. he believes that the company is "ideally positioned for its next phase of growth."
Ceres chair and CEO Joe Crouthers will become a director of the combined entity and praised Parallel's "transition to a publicly traded company."
Besides Crouthers, the newly formed company's board will include Marina Bozilenko, Kevin Douglas, M.D., Sarah Hassan, Linda McGoldrick and Phil Harris.
"Together, Ceres and Parallel have the experience and reputation to drive growth and create value for all their stakeholders," Ceres advisor Scooter Braun said.
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