Now, this is ‘tantalizing’ news!
Hip hop mogul Sean Combs has agreed to buy multiple weed retail and production assets from Columbia Care and Cresco Labs.
Worth up to $185 million, this deal gives Diddy ownership of the biggest Black-owned marijuana company in the United States.
Sean Combs has bought three production facilities and nine retail stores.
The deal will allow Diddy to launch the nation’s first Black-owned and operated integrated multistate operator.
Underrepresentation in The Cannabis Industry
The rap mogul’s goal is to make the marijuana industry more equitable.
Like the rest, Diddy found the lack of Black representation in the cannabis industry a significant disappointment.
The Black community has a history of being arrested and imprisoned for weed possession.
However, now that the drug is legal, the Black community is getting the short end of the stick.
And the stats back Diddy up.
In 2022, only 12.1% of CEOs and owners in the American cannabis industry are minorities; this is down from last year’s 13.1%.
This is below the standard for other industries; roughly 20.1% of the country’s CEOs are minorities.
Terms of The Sale
So, what are the terms of Sean Combs’ deal with Cresco Labs and Columbia Care?
- $45 million in seller notes and $110 million in hard cash will be transferred when the deal is finalized.
- Once certain short-term milestones are met, the rest of the money will be paid.
- In Massachusetts, Diddy will get stores in Leicester and Worcester along with a Cresco Labs Leicester production facility.
- In New York, Sean Combs will get a Rochester production facility and Columbia Care stores in Rochester, Brooklyn, and Manhattan.
- In Illinois, Diddy will get an Aurora production facility and two Chicago stores.
And through the sale, Diddy will be able to:
- Open retail stores in New York, Massachusetts, and Illinois.
- Distribute to licensed retailers in major cities like New York, Chicago, and Boston.
- Cultivate and make his cannabis products.
Diddy’s timing couldn’t be better.
New York is about to launch its new weed market for adults, which should generate at least $1 billion in sales next year and double that by 2026.
Diddy will be a powerful part of that.
Sean Combs Is A Worthy Billionaire
Not satisfied with being a hip-hop legend, Sean Combs became a business mogul.
Sean Combs owns Combs Entreprises, which has an impressive portfolio, including:
- Sean John
- Cîroc vodka
- DeLeón tequila
Now that he’s added a marijuana empire to his portfolio, Combs’ net worth is sure to rise even more.