Diddy has announced plans to invest millions of dollars in the legal marijuana industry.
The Bad Boy Records founder wants to invest $185 million into cannabis operations helmed by Cresco Labs Inc. and Columbia Care Inc. in order to obtain nine retail stores across three states: New York, Massachusetts and Illinois.
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The two companies are each valued at $1 billion and $500 million, respectively, and buy-in into their enterprises includes a $110 million cash payment and an additional $45 million in debt financing, but Diddy said such a price tag didn’t matter when it came to creating opportunities for the Black community.
“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,” Diddy said in a statement.
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“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.”
Puff then echoed this sentiment in an Instagram post announcing the massive deal.
“THE PURPOSE IS BIGGER THAN THE MOMENT,” he wrote. “People don’t realize the politics that go on behind closed doors in the cannabis industry. We have been over policed and over criminalized. 80% of the legal cannabis industry is owned by the same people that incarcerated us for it!
He added: “Now that it is legal we have to be present! People of color only own 2% of the legal industry! This move is intended to fight the inequalities in the cannabis industry!”
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The multi-state operations will provide Diddy with the opportunity to grow and manufacture cannabis products for distribution to the dispensaries in New York, Boston and Chicago.
“Today’s announcement is bigger than the Transaction – and it couldn’t come at a time of greater significance and momentum,” said Cresco Labs CEO Charles Bachtell in a statement. “We’ve seen executive power exercised to address matters of cannabis injustice, 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.”
He added: “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.”
Diddy’s latest investment comes after the newly deemed billionaire also invested $10 million in Elon Musk’s controversial takeover of Twitter alongside Saudi Arabian Prince Al Waleed bil Talal Al Saud and Twitter’s co-founder Jack Dorsey.
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Money moves aside, Diddy has been hard at work on new music, and recently unleashed numerous remixes of his new “Gotta Move On” single, including a “Queen Remix” that features Ashanti addressing Irv Gotti’s inebriated comments he had made about their past relationship on Drink Champs.
