Sean ‘Diddy’ Combs added to his extensive list of victories in 2022 when he announced his entry into the cannabis industry. He allegedly paid up to $185 million for licensed marijuana enterprises in three states from Cresco Labs Inc. and Columbia Care Inc.
The purchase, if approved, was projected to result in America’s largest Black-owned and licensed cannabis company. Diddy’s company will purchase nine retail outlets and three production sites in New York, Massachusetts, and Illinois as part of the agreement.
“His company would pay $110 million in cash and $45 million in debt financing, plus additional money based on certain market-growth milestones. Cresco and Columbia agreed to merge in March,” the WSJ reported.
The WSJ noted that Diddy decided to venture into the marijuana market to address the inequalities in the system where black people are disproportionately arrested for marijuana crimes. “It’s diabolical,” Combs told the WSJ.
“How do you lock up communities of people, break down their family structure, their futures, and then legalize it and make sure that those same people don’t get a chance to benefit or resurrect their lives from it?”
The agreement was reached after Cresco Labs purchased rival Columbia Care for $2 billion, making Cresco the largest cannabis producer in the United States. Cresco is required under the agreement to relinquish holdings in limited-license markets such as New York.
According to Benzinga, the proposed merger between Cresco Labs and Columbia Care agreed upon on March 23, 2022, then modified on February 27, 2023, has been amicably canceled.
“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction,” said Charles Bachtell, CEO and co-founder of Cresco Labs, in a written statement.
Diddy’s dream of becoming the country’s first Black-owned and operated, vertically integrated multi-state cannabis operation has been dashed. His objective, he says, has always been to offer chances for Black entrepreneurs in fields where they have traditionally been denied entry.
Diddy was raised by his grandmother when his father was murdered when he was only two years old. In 1987, he graduated from the Roman Catholic Mouth Saint Michael Academy and enrolled at Howard University as a business student, but he dropped out after his sophomore year.
Along with Notorious BIG, Carl Thomas, Faith Evans, 112, Total, and Father MC, he is credited for developing talents such as Jodeci and Mary J. Blige.
Diddy is now worth nearly $1 billion after establishing a thriving business empire in addition to his music career. According to reports, the American rapper is worth $885 million, with his money derived from investments in companies such as Ciroc Vodka, Sean John apparel line, DeLeon tequila, Aquahydrate water, and sponsorship partnerships.