U.S. Cannabis Player Parallel To Go Public, Valued At $1.9 BillionFebruary 23, 2021
Atlanta, Georgia-based cannabis company Parallel is going public via a special purpose acquisitions company (SPAC).
Led by chairman and CEO Beau Wrigley, Jr., Parallel has agreed to be acquired by Ceres Group Holdings, a recently formed Canadian SPAC. Ceres is led by cannabis investor Joe Crouthers, chairman and CEO, and co-founder Scott “Scooter” Braun, a record industry executive. The transaction values Parallel at $1.88 billion and is expected to close this summer.Parallel expects net revenues to total $447 million this year. The company is currently active in medical markets in Florida and Texas, and recreational markets in Massachusetts and Nevada, with Pennsylvania operations to be added soon. Parallel operates approximately 50 retail locations and cultivation and manufacturing sites across the five states.
“This transaction will enable Parallel to accelerate existing investments to transform not only our company but also the cannabis industry, as we seek to disrupt the more traditional beverage alcohol and healthcare spaces,” said Wrigley. “As a public company, we will have access to capital to grow our national footprint through new licenses and M&A, improve our cultivation and production capacity, expand our established retail footprint, and develop and launch rare cannabinoid products.”
In addition to the $1.9 billion valuation, the transaction will include an investment of $225 million from a group of investors that includes existing Parallel and Ceres investors as well as others. This capital is already earmarked to fund further growth and expansion for Parallel.
Once the deal is completed, Wrigley will remain as Parallel’s chairman and CEO. Braun will serve as a special advisor. The company’s board of directors will include Crouthers and Parallel’s general counsel Phil Harris, along with Marina Bozilenko, Kevin Douglas, Sarah Hassan, and Linda McGoldrick, all of whom have a pharmaceutical or healthcare background.—Danny Sullivan