Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

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

by August 5, 2023
August 5, 2023
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 investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
More people are seeking work, but jobs are becoming harder to find
next post
Capitol 911 false alarm was something very real

Related Posts

3rd Quarter Activities and Appendix 5B

May 1, 2024

Osisko Metals Intersects 300 Metres Averaging 0.39% Copper...

April 14, 2025

Top 5 NASDAQ Fintech Stocks of 2023

December 26, 2023

Lancaster Resources MT Results Show Strong Lithium Targets

September 15, 2023

5 Top Weekly TSXV Stocks: Rio2 Leads After...

December 25, 2023

Gold Price Update: Q1 2024 in Review

April 16, 2024

Fertilizers: The Difference Between Potash and Phosphate (Updated...

June 23, 2023

White Gold Corp. Commences Maiden Diamond Drilling at...

August 16, 2023

Forward Water Technologies Chosen to Advise CleanTech Lithium...

January 13, 2024

Commissioning Proceeding to Plan as Boss Prepares for...

May 8, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    • Jeffrey Christian: Gold, Silver, PGMs — Short-term Prices and Key Drivers

    • Ericsson, Rogers Launch Canada’s First Underground 5G Network for Smart Mining

    • Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump

    Categories

    • Business (1,259)
    • Investing (2,583)
    • Politics (3,699)
    • Stocks (1,669)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, 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 © 2025 moneycontrolplace.com | All Rights Reserved