Parallel Expands Into illinois Cannabis Market
“We are excited about our acquisition of Windy City,” said Dennis O’Malley, President of Parallel. “It is a strong strategic fit with Parallel’s existing operations, and will provide us with the tools we need to fulfill our mission of providing access to quality cannabis across the United States.”
Parallel Cannabis Strategic Investment
Parallel announced today that it has received a strategic investment from The Yucaipa Companies (“Yucaipa”), a leading private equity firm with a track record of investing in growth-oriented businesses across a range of industries. As part of the transaction, Ron Dennis, Principal at Yucaipa and Co-Founder of Just For Men, joins Parallel’s Board of Directors.
“Parallel has established itself as one of the largest multi-state operators in the U.S., capitalizing on our expertise in operations and real estate acquisition to expand further into select markets across the country,” said Robert Fireman, CEO of Parallel. “Illinois is a critical state in our national expansion strategy, and we have been impressed by Windy City’s approach to the industry. This deal allows us to leverage their expertise developing a strong brand presence in Illinois while providing an additional cash flow source as we continue to grow.”
In exchange for an investment from Yucaipa totaling $50 million, Parallel issued 10 million shares of its restricted common stock valued at $5.00 per share, a warrant to purchase 5 million shares of common stock at an exercise price of $5.75 per share that is immediately exercisable and expires in April 2023, and a warrant to purchase 5 million shares of common stock at an exercise price of $6.50 per share that is immediately exercisable and expires in April 2024. In addition, Parallel is eligible to receive up to an additional $20 million investment from Yucaipa based on the achievement of certain performance milestones.
This means an enormous business opportunity for several Illinois residents, especially the Marijuana company “Parallel”. This medical marijuana company is capitalizing on a growing trend in Illinois to join a market that has been projected to reach $50 billion by 2026—and given that Parallel is already successfully conducting business in five other states, the future>write blog title ideas
Today, Parallel, one of the largest privately-held multi-state cannabis operators in the United States (U.S.), announced it has entered into a definitive agreement to acquire, in a cash and stock transaction, certain operations of Windy City Cannabis, comprised of Posen Dispensary Holding Company, LLC, Homewood Holding Company, LLC, Homewood 2nd Site Holding Company, LLC, Posen 2nd Site Holding Company, LLC and Compass Dispensary Holdings, LLC (collectively, “Windy City”). Windy City is a leading operator of adult use and medical cannabis dispensaries throughout Illinois.
Windy City Cannabis Dispensaries Acquired
Windy City’s dispensaries are among the most successful in Illinois, with three locations currently open and one under development all located in high-traffic areas across Chicago and its surrounding suburbs. Windy City will continue to be led by its executive team under Parallel’s ownership, including Les Haber, CEO, Joe Caltabiano, COO, and Steve Smith, CRO. Windy City is fully-licensed for adult use (“adult-use”) throughout the state of Illinois.
” Windy City is a highly successful partner with one of the best executive teams in the industry,” said Tim Pfeffer, Chief Operating Officer at Parallel. “We are extremely pleased to welcome Windy City and its founders to the Parallel family, and we look forward to working with Joe, Les, Steve and their team in building out their footprint.”
Parallel is committed to a collaborative approach to expanding its brands and growing the Windy City footprint through effective cross-brand, cross-state marketing initiatives that can be leveraged by both companies. Parallel intends to grow Windy City into one of the largest multi-state operators in Illinois as adult use cannabis market matures.
“We are thrilled to join forces with Parallel,” said Joe Caltabiano, COO of Windy City. “Parallel’s track record of success and ability to build long-term value for its investors makes them an ideal partner for us as we continue to grow our business in the Illinois market.”
“We are excited to work with Joe, Les, Steve and their team to integrate Windy City Cannabis into the Parallel family,” said Tim Pfeffer, Chief Operating Officer at Parallel. “We are committed to growing Windy City’s dispensary footprint across Chicago and beyond by leveraging our expertise in sales, marketing, operations, capital markets relationships and capital access.”
The transaction is subject to customary closing conditions and the company’s shareholders and certain other approvals, and is expected to close in May, 2021.
Subject to applicable regulations, Windy City will be able to continue operating its dispensaries under Illinois Department of Public Health (“IDPH”) regulations until such time as a Qualifying Transaction has been completed or an exemption from licensing requirements is obtained.