On November 4, Cresco Labs and Columbia Care announced they would sell nine dispensaries and three production facilities in New York, Illinois and Massachusetts to Sean "Diddy" Combs. This was news that Cresco Labs watchers were waiting for. Since the company pitched a takeover of Columbia Health, the second largest New York cannabis business, the concern was how much Cresco might have to divest itself of to satisfy the Cannabis Control Board.

The announcement that Cresco will sell assets to Sean “Diddy” Combs, the famous hip hop artist and philanthropist, provides one probable solution to that issue.

Cresco, headquartered in Chicago, is the top wholesaler of branded cannabis in the country and will overtake Curaleaf in that area if the company completes a takeover of Columbia Care, another cannabis firm, headquartered in the city of Rochester, New York. To avoid divestiture pressure from the New York Cannabis Control Board, which wants to avoid seeing the New York market dominated by a national giant, Cresco has sold some assets in New York, Massachusetts, and Illinois to a new entity tentatively called “The Transaction” that is helmed by Combs. The reported deal involves $185 million.

Charles Bachtel, CEO of Cresco was quoted saying, “Today’s announcement is bigger than the Transaction, and it couldn’t come at a time of greater significance and momentum.”

A Cresco Labs spokesperson confirmed the deal with the Kingston Wire on Wednesday evening, but noted that it would not affect the Ellenville facility.

Combs is a legend in the music business and a cultural icon. He already has a big presence in music, fashion, media, even booze. He has also kept up his ties to the African American community, and he knows what effect the “war on drugs” had on that community. He has said frequently that he is focused now on building power in the community, encouraging education and young entrepreneurs.

With assets close to New York, Boston, and Chicago, Combs’ entity will have the opportunity to become a major player in how the adult-use cannabis market develops in the U.S.

Bachtel said, “We’re seeing bi-partisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility — this announcement adds to that momentum.”