Cresco Labs has set its sights on the multibillion-dollar merger with Columbia Care, with a goal to finalize the process by the end of June. But even with the summer deadline around the corner, challenges in the planned consolidation remain, according to Cresco’s management on a call to discuss the company’s latest earnings report.
“The way to look at it really is there are several things that are within our control, and there are several things that are outside of our control as it relates to the transaction,” CEO Charles Bachtell told investors.
One of the critical factors within Cresco’s control, according to Bachtell, is the company’s ongoing efforts to divest certain assets. “The divestitures and the resulting proceeds from those are a big component of our ability to get the combined debt leverage ratio in the right spot,” he said.
The CEO admitted that the situation remains fluid, especially concerning the divestitures, but insisted that the deal could still make financial sense depending on the outcome of these transactions. “It really does come back to… whether or not we can make the deal makes sense,” he said. “We’ll continue to update the public as we have more definitive information on those divestitures.”
Read more at greenmarketreport.com