Ceres Acquisition Corp To Acquire Parallel In US$1.84 Billion Transaction
Ceres Acquisition Corp (NEO: CERE.u), a special purpose acquisition corp, or SPAC, has entered into a definitive business combination with that of Parallel, one of the largest privately held US-based cannabis operators. The currently proposed transaction values Parallel at roughly US$1.84 billion.
The arrangement will see the company raise US$225 million through an oversubscribed PIPE at a price of US$10.00 per share that will be completed conditionally on the closing of the transaction. Funds are said to largely come from institutions and family offices in Canada and the US, as well as existing investors.
Post closing, the firm is expected to have a pro forma cash position of US$430 million, which comes from the $225 million PIPE, as well as $120 million in cash currently on hand from Ceres’ escrow account. Funds will be used to further growth in the firms five states of operations, which include Florida, Pennsylvania, Massachusetts, Texas and Nevada. Parallel currently has 42 retail locations in operation.
The transaction will see Beau Wrigley continue to serve as the CEO and Chairman of Parallel post-closing of the arrangement, while a board of directors consisting of Marina Bozilenko, Kevin Douglas, Sarah Hassan, Linda McGoldrick, Joe Crouthers, and Phil Harris will be appointed. Notably, Wrigley is the former CEO of the WM. Wrigley Jr Company, which was sold to Mars in 2008 for $23 billion.
The transaction is expected to close sometime in summer 2021.
Ceres Acquisition Corp last traded at $10.50 on the NEO.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
