Cresco Labs Poised To Take Over Bluma Wellness As Merger Review Process Wraps

Cannabis company Cresco Labs CL CRLBF is on its way to take over Bluma Wellness Inc. BWEL BMWLF in an all-share transaction worth $213 million.

The waiting period for a government review of the deal, in accordance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, has expired.

Cresco Labs confirmed Thursday that the transaction is expected to close during the second quarter of 2021.

In January, the Chicago-based company announced its intention to acquire all of Florida-based Bluma's issued and outstanding shares.

In return, Bluma's shareholders agreed to receive 0.0859 of Cresco's subordinate voting share for each Bluma share worth $1.12 per share.

Clarus Securities Inc., INFOR Financial Inc. and Gowling WLG (Canada) LLP advised Bluma throughout the sale process.

"We look forward to completing the remaining steps required to close the Transaction and are excited to begin our work with the Bluma team to accelerate our growth in the Florida market," Cresco Labs CEO Charles Bachtell commented.

Bluma Wellness changed its name from SOL Global Investments Corp. in 2019.

Over the last year, the company's One Plant Florida division has been expanding its retail footprint within the Sunshine State.

In September, OPF cut the ribbon on its fifth store and a delivery hub located in Ocala.

Bluma CEO Brady Cobb told Benzinga earlier they plan to launch "additional One Plant Florida retail locations and/or delivery hubs in Avon Park, Orlando (Fern Park), North Miami and Bonita Springs by the end of 2020, pending receipt of all required regulatory approvals from the Florida OMMU."