Cannabis Weekly Round-Up: Cresco Labs/Columbia Care Deal in Doubt

Cresco Labs and Columbia Care provide update on deal

In a surprising turn of events, Cresco Labs (CSE:CL,OTCQX:CRLBF) and Columbia Care (NEO:CCHW,CSE:CCHW,OTCQX:CCHWF) informed the market on Friday (June 30) that their proposed transaction will not be completed.

The deal would have seen Cresco acquire Columbia Care and absorb all of its assets in the competitive US marketplace.

The companies said "they will not be able to complete the divestitures necessary to secure all necessary regulatory approvals to close the pending transaction" by the deadline, which was Friday.

"At this stage, Cresco and Columbia Care are working amicably with respect to the next steps in relation to the transaction and will provide further updates in the near future," the two companies said in their joint statement.

TerrAscend begins trading on TSX next week

TerrAscend (CSE:TER,OTCQX:TRSSF) confirmed to the market that it has received approval from regulators and will list on the TSX starting next Tuesday (July 4).

"We believe the TSX Listing will provide the Company greater access to a broader group of institutional and retail investors looking for attractive opportunities in the cannabis space," Jason Wild, executive chairman of TerrAscend, said.

The common shares of the firm trading on the CSE will be delisted at the end of the trading session on Friday. Canadian markets will be closed on July 3 due to Canada Day.

Investors aren't required to perform any action as the shares will directly move and begin trading on the TSX next week.

"With all of the fundamental progress we have made, and a confirmed date now set for our listing, we have achieved our goal of becoming truly independent of the need for regulatory reform," Wild said.

Cannabis company news

• Cookies informed the market it was able to reopen its Baltimore location after its business license was suspended. The store will be up and running before the state legalizes adult use on Saturday (July 1).

• Acreage Holdings (CSE:ACRG.A.U,OTCQX:ACRHF) appointed Carl Nesbitt as its CFO starting July 3. “Carl’s strong financial acumen and strategic oversight will be instrumental to Acreage as we continue to drive our near-term growth initiatives and prime our operations for Canopy USA,” Dennis Curran, incoming CEO of Acreage, said.

• Avicanna (TSX:AVCN,OTCQX:AVCNF) issued a revenue projection of C$3.3 million for Q2. The firm completed the acquisition of Medical Cannabis by Shoppers during the period, which brought in C$2.5 million in revenue.

• Canopy Growth (NASDAQ:CGC,TSX:WEED) completed the sale of a facility in Modesto, California, and confirmed proceeds of C$81 million related to the sale of five facilities since April 1. The company expects to reach C$150 million from further facility divestitures by September 30.