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Parallel And Ceres Break Off Acquisition Agreement

October 5, 2021

Parallel, the Atlanta-based cannabis company led by Beau Wrigley, Jr., has terminated its agreement to be acquired by Ceres Acquisition Corp., a special purpose acquisition company. The agreement to go public via SPAC was announced in February of this year, at which time Parallel was valued at $1.9 billion. No reason for the end of the arrangement was disclosed. Parallel declined to comment on the matter.

Wrigley had intended to take the company public as a way to gain more capital for acquisitions. “At the end of the day, this is a hugely capital intensive business—to build out cultivation, production, retail,” he told SND Cannabis Edition earlier this year. “Because of the regulatory environment, you’ve got to do it in every market that you want to play in, meaning you don’t get the efficiencies of interstate commerce, which just makes it that much more expensive. We felt that it was time to go to the public markets to put some more capital on the balance sheet. But even more importantly, it was to have the public currency to make additional transactions.”—Danny Sullivan

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