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Parallel to Acquire Windy City in Deal Valued at USD 100m.

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Vincent

MANews-(C)2009-2021

US multi-state cannabis operator Parallel has agreed acquire certain operations of Illinois adult use and medical cannabis dispensaries operator Windy City Cannabis for USD 100m in a cash and stock transaction, the company said.

The consideration is comprised of USD 60m in cash and USD 40m in Parallel stock, with a total potential consideration of up to USD 155m, inclusive of certain performance-based earn-out payments payable through 2023.

Consideration offered in Parallel stock will be issued following the expected closing of its business combination with Ceres and resulting public listing. Windy City is expected to generate in excess of USD 75m of annualised net revenue in 2021.

Subject to the satisfaction of customary closing conditions and regulatory approvals, the Windy City transaction is expected to close in the second half of 2021.

The closing of the Windy City transaction is contingent on, among other things, the approval by the Illinois Department of Financial and Professional Regulation, the state of Illinois' cannabis authority, to transfer the equity of the licensed entities from Windy City to Parallel.

The acquisition includes certain operations of Windy City Cannabis, comprised of Posen Dispensary Holding company, LLC...

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