Cresco gains on mutually terminating merger with Columbia Care

Cresco Labs

31/07/2023 17:30

** Shares of cannabis company Cresco Labs  CL.CD  rise 2.9%
to C$2.14
    ** Cresco Labs and Columbia Care  CCHW.NLB  mutually
terminate $2-bln merger announced in March last year
    ** There are no penalties or fees related to the termination
    ** Both companies said last month they would not be able to
complete the divestitures necessary to secure regulatory
approvals to close the transaction
    ** "While the merger would've created the largest U.S.
multi-state operator by revenue, it also would've been margin
dilutive" - Wedbush 
    ** Accounting for session gains, Cresco stock is down 12.7%
so far this year
    
($1 = 1.3160 Canadian dollars)

 (Reporting by Arshreet Singh)
 ((Twitter: https://twitter.com/Arshreets))