Connect with us

Hi, what are you looking for?


Cannabis Weekly Round-Up: Cresco Labs/Columbia Care Deal Falls Apart

Cresco Labs (CSE:CL,OTCQX:CRLBF) and Columbia Care’s (NEO:CCHW,CSE:CCHW,OTCQX:CCHWF) planned deal was already in jeopardy, but now it’s official — the companies will end the proposed transaction with no penalties or fees.

Also this week, a medical cannabis real estate investment trust (REIT) issued another successful quarterly report, adding an investor dividend. Keep reading to find out more cannabis highlights from the past five days.

Cresco Labs and Columbia Care call off deal

On Monday (July 31), Cresco Labs and Columbia Care confirmed the end of a US$2 billion agreement that was set to create a cannabis behemoth in the US market, which is set to achieve legal sales of US$35 billion in 2023.

The tie-up was set to be one of the largest in the still-young cannabis industry, and was seen as indicative of the consolidation period the industry is going through.

‘While this is not the outcome we originally hoped for, we are confident Cresco Labs is in a stronger position moving forward,” Charles Bachtell, CEO and co-founder of Cresco Labs, said.

For his part, Nicholas Vita, CEO and co-founder of Columbia Care, was appreciative of the experience for his firm and said his company has become a better operator from being involved in the process.

‘Over the last 16 months we have reviewed every aspect of our business, remained decisive and have made substantive changes that significantly improved our operations — positioning us with significant strategic and operational strength at this inflection point in the company’s history,’ Vita said in a press release.

The main issue dragging down this deal relates to ongoing capital issues for cannabis operators. According to Matt Bottomley, a cannabis analyst with boutique investment firm Canaccord Genuity, a ‘relatively shallow pool of investment dollars coming into the industry made the required pending asset dispositions less attractive than originally anticipated.”

Following the dissolution of the deal, Columbia Care notified investors it will be moving forward with expansion plans in Virginia, as well as with a voluntary delisting from the Canadian Securities Exchange.

Cannabis REIT reports financials

Leading medical cannabis REIT Innovative Industrial Properties (IIP) (NYSE:IIPR) issued its Q2 financial results.

On Wednesday (August 2), the company reported revenue of US$76.5 million, an 8 percent increase over the same period last year. IIP was able to achieve a net income line of US$40.9 million.

Thanks to these results, the company was able to pay a quarterly dividend of US$1.80 per share on June 30.

‘The (revenue) increase was driven primarily by activity in prior periods for the acquisition and leasing of new properties, additional building infrastructure allowances provided to tenants at certain properties that resulted in increases to base rent, tenant reimbursements and contractual rental escalations at certain properties,’ the company said in a statement.

Cannabis company news

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

This post appeared first on

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Overview Flynn Gold Limited (ASX: FG1) is an Australian mineral exploration company with a portfolio of projects in Tasmania and Western Australia. Tasmania is...


    Overview Rua Gold (CSE:RUA,OTC:NZAUF,WKN:A4010V) is a gold exploration company focused on two prolific, historic gold-producing regions in New Zealand: Hauraki Goldfield and Reefton Goldfield....


    I experimented with various strategies that mainly involved long options, which would eventually depreciate and eat away at my capital.   How to start...

    Latest News

    A 23-year-old German-Israeli woman who was kidnapped from the Nova music festival by Hamas militants on October 7 has been declared dead, the Israeli...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024