Sean ‘Diddy’ Combs to purchase hashish belongings from Cresco Labs Columbia Care (OTCMKTS:CRLBF)

Hip-hop artist Sean “Diddy” Combs has agreed to amass licensed marijuana operations from U.S. multi-state operators Cresco Labs (OTCQX:CRLBF), and Columbia Care (OTCQX:CCHWF) in a deal value as much as $185M, The Wall Road Journal reported Friday.

Including to Mr. Combs’ enterprise pursuits in trend, media, and spirits, the transaction would create the biggest Black-owned and licensed hashish firm within the U.S., topic to regulatory approvals.

Per the phrases, a brand new enterprise enterprise managed by Mr. Combs will purchase sure hashish operations from Cresco Labs (OTCQX:CRLBF) and Columbia Care (OTCQX:CCHWF), which have agreed to divest belongings in a number of states forward of their deliberate merger.

Diddy’s firm will purchase 9 retail shops and three manufacturing amenities in New York, Massachusetts, and Illinois for $110M in money and $45M in debt financing, along with sure milestone funds based mostly on market progress.

Noting that he determined to enter the hashish market to assist tackle long-running social inequities, Mr. Combs stated he desires to make use of the enterprise to enhance Black participation within the trade.

In early October, President Joe Biden pardoned individuals convicted of all prior federal offenses for easy possession of marijuana and ordered U.S. regulators to evaluate how the drug is classed.