Parallel, the parent company of NETA, which has medical and adult-use cannabis stores in Brookline and Northampton, announced Monday it has taken steps to becoming a publicly traded company.
Parallel, one of the largest privately-held multi-state cannabis operators in the United States, said it has entered into an agreement with Ceres that, if completed, would result in the company becoming public.
The transaction is expected to be finalized by the summer of 2021.
“We believe Parallel is ideally positioned for its next phase of growth, as we continue to build our presence in strategic markets and invest in innovation, R&D and the customer experience,” Chairman and CEO of Parallel, Beau Wrigley Jr., said in a statement. “Today’s milestone announcement is a testament to Parallel’s impressive growth to date, the strength of our business fundamentals, strong balance sheet, and above all, our unwavering commitment to further developing and enhancing our portfolio of cannabinoid products.”
As part of the agreement, Ceres, a special purpose acquisition corporation, will acquire Parallel at an implied enterprise value of $1.884 billion, the announcement said.
Ceres has also received $225 million in commitments from a group of investors through an over-subscribed private investment in public equity at a price of $10.00 U.S. per share, the announcement said.
The proceeds are intended to be used to fund Parallel’s continued growth and market expansion, the release said.
Parallel owns and operates retail dispensaries in four medical and adult use markets including in Florida, Nevada, Texas and Massachusetts with NETA. Parallel also has a license under its Goodblend brand in Pennsylvania for operations and up to six retail locations, in addition to a medical cannabis research partnership with the University of Pittsburgh Medical Center.
NETA, with locations in Northampton and Brookline, was among the first recreational cannabis stores to open