Wrigley chewing gum heir to take cannabis MSO Parallel public via $1.9 billion deal
Published 2 hours ago
Chewing gum heir William “Beau” Wrigley Jr., the CEO of Atlanta-based Parallel, struck a mammoth deal with an entertainment mogul to take the cannabis multistate operator public through a transaction that values the company at $1.9 billion.
Ceres Acquisition Corp. – a special purpose acquisition company (SPAC) co-founded by Scott “Scooter” Braun – will buy Parallel, allowing the new company to go public by taking on Ceres’ listing on Canada’s NEO Exchange.
A group of investors, led by existing Ceres and Parallel investors, have committed to the deal through an oversubscribed private investment in public equity (PIPE) of $225 million at a price of $10 per share at closing, according to a news release.
Other investors include institutions and private family offices in the United States and Canada.
The combined public company is expected to have a $430 million cash balance at closing, the release noted. That includes $120 million of cash held in Ceres’ escrow account, assuming no redemptions.
Parallel is the latest large marijuana business to go public, following on the heels of a $2.8 billion deal involving cannabis MSO Verano Holdings and a $1.5 billion transaction featuring cannabis advertising platform Weedmaps.
Parallel changed its corporate name from Surterra Wellness in 2019 but still uses the Surterra brand in Florida and Texas.
Wrigley will continue to serve as Parallel’s chair and CEO, while Braun – who has managed notable acts such as Justin Bieber and Ariana Grande – will serve as a special advisor.