Diddy has reportedly lost his bid to launch the biggest Black-owned cannabis company.
According to CNBC, Cresco Labs Inc. and Columbia Care Inc have abandoned their merger, which scuttled the hip-hop mogul’s investment of $185 million he made last year into cannabis operations that the two companies would’ve handled. Their values are $1 billion and $500 million, respectively.
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders,” Charles Bachtell, CEO and co-founder of Cresco Labs, said in a statement. “We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction.”
Back in November 2022, Diddy announced the deal he was involved in: “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,” he said in a statement at the time. “Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”