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Cresco Labs (OTCQX:CRLBF) has successfully closed its acquisition of Cultivate, enhancing its operational footprint in Massachusetts. This acquisition adds approximately 42,000 square feet of flowering canopy, increasing the company's total to around 64,000 square feet, and includes three dispensaries located in Leicester, Worcester, and Framingham. The acquisition aims to leverage Massachusetts's adult-use cannabis market, which is noted for its limited cultivation licenses and strong pricing. CEO Charlie Bachtell expressed confidence in a smooth integration process and the potential for growth.
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Acquisition adds 42,000 square feet of flowering canopy, increasing total to 64,000 square feet.
Three new operational dispensaries enhance retail presence in Massachusetts.
Strategic acquisition aimed at capturing market share in the growing adult-use cannabis market.
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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 closing of the Company’s previously announced acquisition of Cultivate (the “Transaction”).
Cresco Labs closes acquisition of vertically integrated Cultivate which operates three cannabis dispensaries in Leicester, Worcester, and Framingham (Pictured). (Photo: Business Wire)
Transaction Highlights
Approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The Transaction also includes space available to further expand cultivation capacity.
Three operational dispensaries located in Leicester, Framingham, and Worcester, bringing combined retail storefronts in-state to four. Concurrent with closing, the Company’s Fall River retail location has transitioned to medical sales only.
Greater operating platform to pursue market share growth in the largest adult use cannabis market in the northeast. The Massachusetts’ market structure offers a unique opportunity to wholesalers given limited cultivation licenses, robust pricing, and abundant retail stores throughout the state.
“The closing today constitutes another important step for Cresco Labs as we deepen our presence in large, attractive states like Massachusetts and increasingly tailor and strengthen our state-level strategies to optimize growth and profitability. Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts,” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs. “We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”
About Cresco Labs Inc.
Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods (“CPG”) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the United States. Its brands are designed to meet the needs of all consumer segments and are comprised of some of the most recognized and trusted national brands, including Cresco, High Supply, Mindy's Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2020 filed on March 26, 2021, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs’ shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.
What is the significance of Cresco Labs' acquisition of Cultivate?
The acquisition strengthens Cresco Labs' presence in Massachusetts, increasing its cultivation capacity and retail outlets, which is crucial for growth in the competitive cannabis market.
How many dispensaries does Cresco Labs now operate in Massachusetts after the acquisition?
Cresco Labs now operates four dispensaries in Massachusetts, including the newly acquired three from Cultivate.
What is the total flowering canopy size for Cresco Labs in Massachusetts post-acquisition?
After the acquisition, Cresco Labs' total flowering canopy size in Massachusetts is approximately 64,000 square feet.
When was the acquisition of Cultivate by Cresco Labs announced?
The acquisition was previously announced prior to the closing on September 3, 2021.
What market opportunity does Cresco Labs see in Massachusetts?
Cresco Labs aims to capitalize on the robust and growing adult-use cannabis market in Massachusetts, which has limited cultivation licenses and strong pricing.
