Diddy just put his hand in the cannabis industry and it’s a big move indeed. The music mogul recently took ownership of a huge cannabis company and the sale is nearly complete.
The reported $2 billion transaction also makes the music executive and entrepreneur the owner of the first minority-owned and operated multi-state operator. This means one of his dispensaries could be coming to a location near you.
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The purchase of the company, according to reports, the deal is worth $185,000,000. One of the companies involved is the number one U.S. wholesaler of branded cannabis, Columbia Care, per the Wall Street Journal.
Also, according to a press release by the Wall Street Journal, the agreement is to sell their New York, Illinois, and Massachusetts assets to Diddy. This is the first time in history that a Black man or minority has had this much power in the cannabis industry. In a statement by Cresco Labs, its CEO Charles Bachtell had this to say:
“Today’s announcement is bigger than the Transaction – and it couldn’t come at a time of greater significance and momentum. We’ve seen executive power exercised to address matters of cannabis injustice, we’re seeing bi-partisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility – this announcement adds to that momentum."
The CEO also mentioned the need for diversity in the industry, while also welcoming Diddy on board by adding, “For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future. For an industry in need of greater diversity of leadership and perspective, the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous…and incredibly exciting. We’re thrilled to welcome Sean and his team to the industry.”
Diddy spoke WSJ about the legal demonization of marijuana while the cannabis industry thrives.
“It’s diabolical," he said. "How do you lock up communities of people, break down their family structure, their futures, and then legalize it and make sure that those same people don’t get a chance to benefit or resurrect their lives from it?”
Cresco and Columbia Care are two of the largest cannabis companies in America. This acquisition will change the game and many hope that others from marginalized groups will add their names to the cannabis industry.
Check out Diddy speaking on his new venture on Instagram above and below.