The cannabis company dream of rapper Diddy (Sean J. Combs) might not come true as his $185 million merger fails.
His company, Bad Boy Entertainment, was supposed to acquire some marijuana retail stores and production facilities.
However, it looks like this will no longer happen, as confirmed by shareholders.
Rapper Diddy's Cannabis Company Dream Might Not Come True
According to TMZ's latest report, Crescho Labs and Columbia Care are among the cannabis companies that the Bad Boy mogul was supposed to acquire.
Sources claimed that the rapper and the marijuana companies agreed on the proposed merger agreement in 2022.
However, it was revealed that shareholders never reached an agreement. Because of this, Diddy's deal with the companies was terminated this August.
If the merger became successful, it would allow Sean to become the owner of nine cannabis stores across Massachusetts, New York, and Illinois.
Each of these cannabis companies will have its own production facility, making Diddy the largest Black cannabis business owner.
But, since the deal was already terminated, this will no longer happen. Although this is the case, the rapper's team said that he and the Combs Global empire will still pursue other opportunities to diversify the cannabis industry.
Other Details of the Failed Cannabis Company Merger
The Daily Mail UK reported that Columbia Care and Cresco Labs were supposed to merge. Their deal was expected to make them the largest U.S. marijuana manufacturer.
However, it was called off by investors because they are concerned about some regulatory issues, as well as the economy's current strength.
The two cannabis companies failed to divest enough assets to persuade regulators to allow their merger deal.
This drastically affect Cresco Labs' market capitalization, decreasing it from $2.7 billion to around $700 million after the deal was terminated.
Since the merger deal didn't push through, Diddy was left with nothing to buy from the two cannabis companies.
"My mission has always been to create opportunities for Black entrepreneurs in industries where we've traditionally been denied access," the rapper explained.
He added that the acquisition will provide the immediate impact and scale needed to establish a more equitable future in the cannabis industry.
But, Diddy now needs to find other opportunities to continue his cannabis company dream.
