Cresco Labs, Columbia Care unable to sell units needed to complete proposed merger deal

Cresco Labs
CRLBF,

CL,
-0.93%
and Columbia Care
CCHWF,
-1.46%
said Friday they will not be able to sell off the required business units necessary to secure all necessary regulatory approvals to close their pending merger deal by the outside date of June 30. “At this stage, Cresco and Columbia Care are working amicably with respect to the next steps in relation to the transaction and will provide further updates in the near future,” the companies said. In March 2022, Cresco Labs announced plans to buy Colombia Care in a stock-for-stock transaction valued at $2 billion. At last check, the combined market caps of the two companies was about $869 million. Cresco Labs stock is down 10.6% so far in 2023 while Colombia Care’s stock has lost 40% of its value this year.