Diddy Just Became A Legit Marijuana Kingpin After Signing A $185 Million Weed Licensing Deal
Source - Sean “Diddy” Combs has agreed to purchase licensed marijuana operations in three states for up to $185 million, adding a new business to a portfolio that includes fashion, media and spirits.
If approved by U.S. and state regulators, the deal could create the nation’s largest Black-owned and licensed cannabis company. Mr. Combs said he wants to use the business as a platform to increase Black participation in the cannabis industry.
The hip-hop impresario is purchasing the cannabis operations from Cresco Labs Inc. and Columbia Care Inc., two of the largest cannabis businesses in the U.S., which must divest assets in several states as part of a planned merger.
Under the deal, a new company controlled by Mr. Combs would acquire nine retail stores and three production facilities in New York, Massachusetts and Illinois. His company would pay $110 million in cash and $45 million in debt financing, plus additional money based on certain market-growth milestones. Cresco and Columbia agreed to merge in March.
Good for Diddy. I feel like him and Jay Z have been in the news more lately because of all the Kanye bullshit and it really makes you appreciate them for who they are. Just two old fashioned moguls trying to make buck. They don't care about headlines or staying relevant, they care about their bank accounts. There's nothing left for either of them to prove which is why I love them so much.
The deal itself comes after Jay Z announced his plan to create a fund to invest in minority-owned cannabis startups. Coincidence? I think not. Regardless, here are the details surrounding Puff Daddy's purchase...
Among the assets in the cannabis transaction, Mr. Combs’s company would acquire retail locations in Manhattan, Brooklyn and Chicago. Marijuana dispensaries in New York currently sell only for medical use. T
he state plans to begin awarding recreational marijuana retail-store licenses this year. New York has said that existing medical operators later will be allowed to open recreational stores.
Mr. Combs said his new company would build new cannabis brands, hire people who have prior marijuana-related convictions.
The best part? He signed the paper work on his birthday. Talk about a great 53rd. That's it for this one. Have a great Saturday. Now take it away, Puff...
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