Cresco Completes Sale-Leaseback Deal In Pennsylvania To Free Up Capital

The deal with Aventine Property Group provided $45 million to Cresco to reinvest in the company's overall growth.

Chicago-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) this week completed another sale-leaseback arrangement, this time with Aventine Property Group for a facility in Pennsylvania, from which Cresco gained $45 million in cash.

According to a news release, Cresco sold a 135,000-square-foot cultivation, manufacturing and processing warehouse in Brookville to Aventine. The property will be leased back immediately through Cresco’s subsidiary, Cresco Yeltrah LLC, so that operations continue unabated.

The deal “further strengthens our company, unlocking valuable capital from our balance sheet,” Cresco CEO Charles Bachtell said in the announcement.

Cresco has entered into at least five other sale-leaseback deals with Innovative Industrial Properties, which purchased facilities and leased them back to Cresco in Massachusetts, Michigan, Ohio and Cresco’s home state of Illinois.

The Pennsylvania transaction is Cresco’s first such deal with Aventine Property Group.

John Schroyer


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