- Columbia Care Inc. (CCHW) has received shareholder approval for its US$2 billion business transaction with Cresco Labs Inc. (CL)
- The two companies are involved in the cannabis industry, recreationally and medically
- 98.55 per cent of voters approved the transaction
- Cresco Labs will now acquire all of the issued and outstanding shares of Columbia Care
- Columbia Care Inc. (CCHW) is down 1.02 per cent trading at $1.95 per share as of 3:50 p.m. ET
- Cresco Labs Inc. (CL) is down 0.50 per cent trading at $3.99 per share as of 3:50 p.m. ET
Columbia Care (CCHW) has received shareholder approval for its US$2 billion business transaction with Cresco Labs (CL).
Columbia Care operates 131 facilities, including 99 dispensaries and 32 cultivation and manufacturing facilities, including those under development. Cresco Labs is a vertically-integrated multi-state cannabis operator in the U.S.
With 98.55 per cent voter approval, Cresco Labs will acquire all of the issued and outstanding shares of Columbia Care.
Allegedly, 169,938,646 Columbia Care shares were shown in person or by proxy at the meeting. This number represents 42.6 per cent of the Columbia Care Shares issued and outstanding.
“We are grateful for the overwhelming support of our shareholders as we move forward with the combination… As we celebrate this milestone, we remain steadfast in executing our strategic objectives through the close of the transaction, which we anticipate will be near the end of this year,” Nicholas Vita, Co-Founder, CEO of Columbia Care, said.
The companies stated the transaction would be done through a plan of arrangement. After which, Columbia Care Shareholders will hold approximately 35 per cent of pro forma Cresco Labs Shares.
According to Cresco, shareholders of Columbia Care will receive 0.5579 of a Cresco subordinate voting share for each pre-transaction common share or equivalent held. The previously mentioned payment is based on the closing price of Cresco Labs shares on the Canadian Securities Exchange as of March 22nd.
Columbia Care Inc. (CCHW) is down 1.02 per cent trading at $1.95 per share as of 3:50 p.m. ET.
Cresco Labs Inc. (CL) is down 0.50 per cent trading at $3.99 per share as of 3:50 p.m. ET.