The famous rapper Sean “Diddy” Combs who is also known as Puff Daddy is set to own the largest Black-owned licensed cannabis company in the United States after signing a deal with Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) to purchase some of its assets.
On Tuesday, the Alberta-based financial institution –which served as Combs advisor– ATB Financial announced the agreement where Combs agrees to buy Cresco Labs assets in New York, Illinois, and Massachusetts. The transaction is expected to close during the first quarter of 2023.
If approved by U.S. and state regulators, the deal could create the nation’s largest Black-owned and licensed cannabis company. Combs has said he wants to use the business as a platform to increase Black participation in the industry.
“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Combs.
Cresco & @ColumbiaCare will divest certain NY, IL, & MA assets to @Diddy, creating the first minority-owned & operated, vertically integrated cannabis MSO in the US. This planned divestiture is a major step towards closing the @ColumbiaCare acquisition. https://t.co/Xvk5T5gZ0K
— Cresco Labs (@crescolabs) November 4, 2022
“ATB Financial is pleased to be an advisor of this milestone transaction which represents a pivotal moment for minority entrepreneurs as well as for this industry,” ATB Financial CEO Curtis Stange said.
“Our highly specialized team of experts at ATB Capital Markets helps companies find success locally and globally with expert advice and access to capital.”