Benzinga | Nov 26, 2021 10:11AM EST

Cresco Labs Completes $90M Acquisition Of Three High-Performing PA Cannabis Dispensaries

Vertically integrated cannabis company Cresco Labs (CSE:CL) (OTCQX:CRLBF) confirmed on Thursday that it had closed its previously announced acquisition of Bay, LLC d/b/a Cure Pennsylvania for $90 million in cash and stock.

Transaction Highlights

* Three operational dispensaries in Lancaster, Phoenixville and Philadelphia;

* Cure Penn's dispensary locations are incremental and complementary to Cresco Labs' five existing Sunnyside dispensaries in Pennsylvania;

* A retail platform that outperforms the average revenues per-store in Pennsylvania, to be further improved through Cresco Labs' Sunnyside retail model;

"Our focus heading into 2022 is on tailoring our strategy to the dynamics of each state to maintain a dominant market position and increase profitability," Charlie Bachtell, Cresco Labs' CEO & co-founder stated. "Between the acquisition of Cure Penn and the pending acquisition of Laurel Harvest, we are adding four new operational stores, licenses for five incremental stores and 52 thousand square feet of indoor cultivation space in Pennsylvania. The moves we're making in this state to increase our retail footprint and add cultivation put us in the best position to remain the number one wholesaler in the current framework and continue to win when adult-use is ultimately introduced. Another example of our focus on strategic breadth, depth and execution as the path to success today and as this industry evolves."

The company expects to transition all stores in Pennsylvania to Sunnyside by the end of Q1 2022.

Price Action

Cresco Labs' shares traded 0.28% at $8.82 per share at the time of writing Friday morning.







Photo: Courtesy of Business Wire