Cresco Labs (CSE) (OTCQX) and Columbia Care Inc. (NEO) (CSE) (OTCQX) entered into a definitive agreement where Cresco Labs acquired all outstanding shares of Columbia Care for an enterprise value of approximately $2.5 billion (USD $2 billion) based on the exchange rate at the time. Columbia Care shareholders received 0.5579 Cresco Labs shares for each Columbia Care share, representing a 16% premium based on March 22, 2022, closing prices.

This merger positioned Cresco Labs as the largest multi-state operator by pro-forma revenue, exceeding $1.75 billion (USD $1.4 billion), and expanded its retail footprint to over 130 stores across 18 markets, covering 55% of the U.S. population. The combined entity aimed for significant market share in key states, including top positions in Illinois, Pennsylvania, Colorado, and Virginia.

The transaction was structured as a plan of arrangement under the Business Corporations Act (British Columbia) and required approvals from the Supreme Court of British Columbia and regulatory bodies. It was unanimously approved by the boards of both companies. Financial advisors included Stoic Advisory Inc. and Solidum Capital Advisors for Cresco Labs, with Bennett Jones LLP and Paul Hastings LLP providing Canadian and U.S. legal advice, respectively. Columbia Care's advisors included Canaccord Genuity, Stikeman Elliott LLP for Canadian legal advice, and Foley Hoag LLP as U.S. legal counsel. The transaction was expected to close in Q4 2022