Cresco Labs to Acquire Three High-Performing Pennsylvania Dispensaries

CANNANNEW REPORT

Cresco Labs signs definitive agreement to acquire three Cure Penn Dispensaries in Pennsylvania (Photo: Business Wire) September 23, 2021 07:30 AM Eastern Daylight Time CHICAGO–(BUSINESS WIRE)–Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced today the execution of a definitive agreement to acquire 100% of the outstanding equity interests in Bay, LLC d/b/a Cure Pennsylvania (“Cure Penn”) for an aggregate consideration equal to US$90 million (the “Transaction”). The Transaction is expected to close in Q4 of 2021. “As we implement localization strategies tailored to state level dynamics, this Transaction with Cure Penn is expected to expand our retail footprint in Pennsylvania, increase profitability, and strengthen our wholesale leadership position in the state. We’re thrilled to continue executing our playbook of achieving depth in strategic markets via rigorous capital allocation,” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs. “The Cure Penn team has developed a high-performing retail platform across three dispensaries that sets up another immediately accretive acquisition for Cresco Labs. We’ve proven our ability to drive incremental top and bottom-line growth from the implementation of Sunnyside’s best-in-class operating model, and we look forward to growing our house of brands which are already among the most sought after by patients in Pennsylvania.” Operational Highlights Three operational Cure Penn dispensaries in Lancaster, Phoenixville, and Philadelphia Cure Penn dispensary locations will be incremental and complementary to Cresco Labs’ four existing Sunnyside dispensaries in Pennsylvania A retail platform that outperforms the average revenues per-store in Pennsylvania. Transaction Details The aggregate consideration amount for the Transaction is equal to Ninety Million Dollars (US$90,000,000) and will be satisfied at closing through the payment of cash and stock. The Transaction will be completed on a cash-free, debt-free basis with a…

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Source : Cresco Labs to Acquire Three High-Performing Pennsylvania Dispensaries

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