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Sean ‘Diddy’ Combs to buy Cresco, Columbia Care marijuana assets for up to $185 million

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Business mogul and rapper Sean “Diddy” Combs agreed to buy marijuana retail and production assets owned by Columbia Care and Cresco Labs for up to $185 million to create what is being called the largest Black-owned cannabis company in the U.S.

The sale of the retail and production facilities in three states also will bring New York-based Columbia Care and Chicago-headquartered Cresco closer to completing their merger. That deal was announced in March and valued at the time at roughly $2 billion.

The transaction must be approved by regulators and receive clearance from federal antitrust regulators.

According to a Friday news release, Combs is buying nine retail stores and three production facilities in Illinois, Massachusetts and New York – a move that will allow the Black entrepreneur to launch “the country’s first minority-owned and operated, vertically integrated multistate operator.”

Requests from MJBizDaily for comment from the mogul’s Combs Enterprises were not returned.

But Combs told The Wall Street Journal he’s disappointed by the lack of minority representation in the cannabis industry and aims to make it more equitable.

“It’s diabolical,” he said.

“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?”

MJBizDaily’s new report, “Diversity, Equity & Inclusion in the Cannabis Industry,” shows that 12.1% of executives in the U.S. marijuana industry are racial minorities, down from 13.1% in 2021.

That’s well below the average for all U.S. businesses: According to the U.S. Bureau of Labor Statistics, approximately 20.1% of all CEOs nationwide are racial minorities.

Cresco’s acquisition of Columbia Care is contingent on Cresco’s divestiture of assets to meet regulatory requirements.

Additional asset sales are expected.

The deal with Combs will close if Cresco’s purchase of Columbia Care closes, the release noted.

According to the terms of the Cresco asset sale:

  • Roughly $110 million in cash and $45 million in seller notes will be payable when the transaction closes.
  • The rest of the $185 million will be payable if certain “short-term, objective and market-based milestones” are met.
  • In New York, the transaction includes Columbia Care’s Brooklyn, Manhattan and Rochester stores as well as a Rochester production facility. The deal also includes a New Hartford store owned by Cresco.
  • In Massachusetts, a Cresco Labs Leicester production facility plus stores in Worcester and Leicester are part of the deal. The transaction also includes a Columbia Care store in Greenfield.
  • In Illinois, three assets owned by Columbia Care are included: two stores in Chicago and a production facility in Aurora.

According to the release, the asset sale gives Combs the ability to:

  • Cultivate and manufacture cannabis products.
  • Wholesale and distribute those branded products to licensed retailers in big metropolitan areas including Boston, Chicago and New York City.
  • Operate retail stores in all three states.

The transaction comes as New York prepares to launch its new adult-use marijuana market, which is expected to be one of the largest in the nation.

New York adult-use retailers are projected to generate $1 billion-$1.2 billion in sales next year and growing to $2.2 billion-$2.7 billion by 2026, according to the 2022 MJBiz Factbook.

Illinois already has a robust recreational market, while legalization advocates have long eyed Pennsylvania as ripe for adult use – although efforts to launch such a market have run into opposition from Republican legislators.

The Combs deal has benefits for Cresco, too.

“For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future,” Cresco Labs CEO Charles Bachtell said in a statement.

“For an industry in need of greater diversity of leadership and perspective,” he continued, “the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous… and incredibly exciting.

“We’re thrilled to welcome Sean and his team to the industry.”

No stranger to business

While it’s Combs’ first foray into cannabis, the chair and CEO of New York-based Combs Enterprises last week was declared a billionaire and the second-richest hip-hop artist in North America.

The Combs Enterprises portfolio includes alcohol brands DeLeón tequila and Cîroc vodka, the Oscar-winning Revolt film and television company and clothing brand Sean John.

But Combs, who performed and recorded music under the name Puff Daddy, is probably best known for his oldest business venture, Bad Boy Entertainment.

That division put out some of the most popular hip-hop music in the 1990s by artists such as the Notorious B.I.G., Craig Mack and Ma$e.

Combs isn’t the first Black entertainment mogul to enter the cannabis industry.

Fellow New York native Shawn “Jay-Z” Carter – the wealthiest hip-hop artist in North America, according to ex-Forbes editor Zack O’Malley Greenburg – entered California’s cannabis industry with the Monogram brand, which launched in 2020.

In 2021, as part of a special purpose acquisition company (SPAC) deal involving Left Coast Ventures, a cannabis investment and production company, as well as marijuana brand Caliva, Carter was hired to promote equity and inclusion.

Berner, the founder of cannabis producer and retailer Cookies, is fourth on the list of North America’s richest hip-hop artists.

But Combs could be the first Black owner of a vertically integrated multistate cannabis operator.

“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” Combs, said in a statement.

“Owning the entire process – from growing and manufacturing to marketing, retail, and wholesale distribution – is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”

It’s not yet clear how Combs will navigate the New York market, where he will hold both production and retail licenses.

Last week, state regulators advised that vertically integrated cannabis companies will be banned from participating in adult-use sales, which are scheduled to begin this year.

Cresco acquisition looking good

Shaleen Title, a former Massachusetts cannabis regulator and the founder of drug policy think tank Parabola Center, tweeted that rather than focusing on wealthy acquisitions, it’s more important to note that in order for Cresco Labs to acquire Columbia Care, the two companies would have to divest multiple assets in several states to complete the merger.

Equity analyst Owen Bennett of New York-based investment bank Jefferies Group wrote in a note that that the company is “very bullish” on the merged Cresco-Columbia company now that it has assets in only Florida, Maryland and Ohio to be sold.

With the collapse of two M&A cannabis deals in recent months – Verano Holdings’ acquisition of Goodness Growth and Ascend Wellness’s acquisition of MedMen’s New York assets – there have been doubts that Cresco’s acquisition could also fall through.

“While more assets to be offloaded, today’s announced sales now materially reduce the risk of the deal not completing, in our view,” Bennett wrote.

“What is also very encouraging against the backdrop of the more challenging industry conditions outlined is the fee to be received, more so given the much documented headwinds for New York.”

Bennett wrote that he believes the two companies will get close to the projected $300 million from their respective divestitures.

Derek Dley, a Toronto-based analyst with Canaccord Genuity Group – acting as financial adviser to Columbia Care through the acquisition – warned that it could be lower.

“Following this morning’s announcement, we believe that total number is now lower as we estimate the assets referenced today make up the vast majority of the value of the total asset divestiture package,” Dley wrote in a note.

Pablo Zuanic, managing partner at New York-based investment banking firm Cantor Fitzgerald, outlined in a Friday note what’s left to divest:

  • Five Ohio stores plus production.
  • A small processor in Maryland.
  • One Florida license.

“The company may opt, although it is not required, to also sell part of its assets in Florida and Pennsylvania for efficiency purposes,” he wrote.

“Based on comps, we think the Florida license could be worth $50 million (although comps may be dated), Ohio for more than $30 million and Maryland for around $5 million,” he added.

“If we add other assets to be sold (Florida/Pennsylvania, we think the company may reach the guidance of $300 million in gross proceeds from asset sales.”

Shares of Columbia Care were up by 2.34% on the Canadian Securities Exchange (CCHW) and by 4.23% on the U.S. over-the-counter markets (CCHWF) on Friday afternoon.

Shares of Cresco were down by 1.16% on the CSE (CL) and by 0.32% on the OTC markets (CRLBF).

Source: https://mjbizdaily.com/sean-diddy-combs-to-buy-cresco-columbia-care-marijuana-assets-for-up-to-185-million/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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