Cresco Labs aims to become global cannabis leader with purchase of Columbia Care

Cresco Labs aims to become global cannabis leader with purchase of Columbia Care
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As global demand for legal medical and recreational cannabis grows, industry players are pulling out all the stops to ensure they maintain an edge over their rivals.  The competition is most certainly heating up, but this shouldn’t be a problem for Cresco Labs.  Based in Chicago, Illinois, Cresco is planning on transforming into a worldwide cannabis leader by acquiring New York-based Columbia Care. New York became the 15th U.S. state to legalize recreational cannabis use on March 31, when Governor Andrew Cuomo signed the New York State Marijuana Regulation and Taxation Act (“MRTA”) into effect. However, due to the complexities of New York’s complex legal and regulatory program, statewide sales may not transpire for another few months. About the merger between Cresco Labs and Columbia Care Valued at $2 billion, the deal announced by American cannabis cultivator and processor Cresco Labs to purchase Columbia Care represents one of the biggest merger deals ever to take place in the cannabis sector. Cresco’s merger with Columbia Care should be finalized by the end of this year. Once the merger is complete, Cresco’s footprint will extend across 17 states and the District of Columbia. “This is how you turn brands like High Supply, Cresco and FloraCal into Miller High Life, Coca-Cola and Johnnie Walker Blue Label,” Chief Executive Officer Charles Bachtell told interviewers at BNN Bloomberg as he highlighted some of Cresco’s brands. Published reports suggest that Cresco’s estimated revenue will swell to $1.4 billion following the merger. Shares of Cresco Labs dropped upon news of merger with Columbia Care Although the outlook is promising, news of Cresco’s merger with Columbia Care didn’t look so promising from the perspective of a stock market trader.  Why, you ask? Upon news of the merger, company shares tumbled from $6.54 to $5.82. Cresco’s shares closed at…

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Source : Cresco Labs aims to become global cannabis leader with purchase of Columbia Care

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