Parallel CEO says $1.9 billion SPAC deal will help it fund R&D efforts and look for acquisitions

Cannabis firm Parallel is prioritizing analysis and improvement to place itself forward of its opponents, CEO Beau Wrigley stated Tuesday.

“We’ve invested a lot in R&D and that differentiates us from a lot of other companies out there because there’s so much technology and capability that can go into some of the rare cannabinoids that people aren’t really even working with yet that can drive enormous well-being benefits to people going forward,” stated Wrigley, in an interview on CNBC’s “Squawk on the Street.

Last week, Parallel introduced its $1.9 billion deal with Ceres Acquisition Corp, a particular function acquisition firm co-founded by music entrepreneur Scooter Braun. The deal is anticipated to shut this summer season.

Parallel presently has about 50 dispensaries within the U.S. and is hoping to develop nationwide. The firm expects it will have $447 million in income this 12 months, and plans to make use of the funds from the deal to speed up its present product improvement and make it simpler to develop by means of acquisitions.

Wrigley informed CNBC that it is an effective time for Parallel to go public, noting that “it’s a time for consolidation in the industry so having a public currency enables us to not only grow organically but also access in organic or M&A opportunities as well.”

Wrigley was the fourth era of his household to run the namesake gum model. In 2008, he took the corporate his great-grandfather based within the late 1800s non-public in a leverage buyout to Mars for $23 billion.

Regarding hashish regulation, Wrigley expects federal legalization will take longer than native and state legalization within the U.S. He stated he’s hopeful states will turn into extra business-friendly in direction of hashish firms.

“The smart thing to do is to allow a fundamentally business-friendly regulatory environment for these companies to play in. Otherwise, you’re going to have people going to the black market and doing things that none of us really want,” Wrigley stated.

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