Cresco Labs Archives - Page 2 of 6 - Green Market Report

Debra BorchardtAugust 15, 2022
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4min1420

Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported financial results for the second quarter ending June 30, 2022, with revenue rising 18% to $129 million over last year’s $109 million. Revenue grew 5% sequentially from the first quarter. The company reported a net loss of $54 million versus last year’s net loss of $18 million, higher than the previous quarter’s net loss of $27 million. This is also expected to be the last quarterly earnings report before the company combines with Cresco Labs.

“In these challenging times, Columbia Care achieved exceptional results in several key markets that serve as meaningful, positive long-term indicators. Despite the economic headwinds and challenges that were particularly impactful in our most mature markets, we saw surprising resilience across the country, in addition to outstanding performance in our highest growth, emerging markets. We delivered solid organic topline growth of 5% sequentially to reach $130 million in revenue for the quarter, an increase of 18% over Q2 2021. New Jersey, the most recent state to launch adult use, was a primary driver in sequential revenue growth, along with Virginia and West Virginia, where we are the number one wholesaler and retailer in these rapidly-expanding medical markets” said Nicholas Vita, CEO of Columbia Care.

Best Markets

Col-Care said its top five markets by revenue in the second quarter were California, Colorado, Massachusetts, Pennsylvania, and Virginia. However, it was New Jersey that put it over the top this quarter. In April,  New Jersey launched adult-use sales with limited hours but expanded to full adult use hours in June 2022, and revenue in New Jersey more than doubled sequentially. During the quarter, the company said it operationalized its second cultivation facility in New Jersey, adding approximately 270,000 square feet of cultivation and production capacity, as well as post-harvest automation equipment. The first harvest from the second cultivation site is expected in the third quarter of 2022.

Vita continued, “Sixteen of our seventeen U.S. markets generated positive EBITDA in the quarter and twelve markets saw sequential improvement in gross margin. Excluding California and Colorado, our EBITDA margin would have been over 500 basis points higher for the quarter. We continued to drive the organization forward by capitalizing upon growth from emerging markets as they transition to more favorable regulatory environments, leveraging our expanding scale, and implementing strategies in mature markets to consolidate supply and distribution channels.”

Looking Ahead

Columbia Care forecasts continued sequential top-line growth of mid-single digits in each of the next two quarters. In addition, the company said it expects sequential improvements in market level EBITDA margin in the range of 150-250 basis points per quarter compared to its year-to-date results.

“For the remainder of 2022, Columbia Care will execute against our strategic priorities while completing the steps necessary to close the merger with Cresco on time. The integration planning process has brought an overwhelming sense of excitement and momentum. As a founder of Columbia Care, seeing our organizations collaborate so well has been humbling and deeply gratifying. Our shared vision has enabled both organizations to focus on the range of opportunities that lay before us and meet the future with clarity, momentum, and capabilities that will drive outsized shareholder value for years to come. The embedded growth and sustainable margin opportunity being unlocked by this combination will be a game changer.”


Debra BorchardtJuly 5, 2022
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Cantor Fitzgerald analyst Pablo Zuanic issued a report this morning in which he sees some value in the beaten-up cannabis group, although he also cautioned that numerous roadblocks remain. He was clear that the group may not have even found a bottom yet as prices continue to slide along with the broader market. Zuanic also noted that even the second quarter might not bring relief on valuations, but he is a selective buyer at these levels. Having said that he said investors may not see any meaningful upside for another two to three years and that it would probably only occur when some sort of federal reform occurs.

Current Valuation

Zuanic wrote, “The MSOS ETF fell 25% in the last month vs. a 7% drop for the S&P500, and over the last three months it is down 49% vs. -15% for the SPX Index (yoy -75% vs. -12%). Even on risk-on days, when the larger Canadian LPs move up, MSOs either drop or stay flat. The MSO stock performance masks encouraging medium and long-term sales trends, with more states legalizing since 4/1 (NM, NJ), or soon to start rec sales (RI, CT/NY), or soon to vote to legalize (MD, MO); also, states like IL could see growth accelerate as more stores open, as we have recently seen in MI (+22% seq sales trends based on Apri/May data).”

If investors were hoping for some relief in the second quarter, then Zuanic dashed those hopes. He said that the second quarter boost will most likely only apply to those companies in New Jersey. Adult-use sales begin in the state on April 21 and sales have reportedly been very good. Plus, investors have been increasingly focused on profit margins and cash flows, which dampens buying. The companies with good cash flow are also beset with high taxes and debt levels are high.

“In this context, where it is difficult to call the bottom (as technicals and poor liquidity exacerbate stock swings and concerns about the lack of reform at the federal level and about state level fundamentals), we would tread carefully and are buyers only selectively of a few MSOs. We think the current state of affairs will lead to further consolidation (Columbia Care was at 0.9x debt to sales as 3/31/22, and we think that contributed to the decision to sell at the bottom) and benefit those in a stronger position,” wrote Zuanic.  He says he is focused on quality and his top picks (in alphabetical order) remain: Cresco (CRLBF. OW) proforma (1.7x C23 EV/Sales), Curaleaf (CURLF, OW) (2.7x), Green Thumb (GTBIF, OW) (1.6x), and Trulieve (TCNNF, OW) (1.9x).

Sales Trends

The analyst took a temperature read on sales in the second quarter based on data from Headset. He cautioned that it wasn’t official hard data, but did gather that second-quarter sales overall had improved from the first quarter. Most companies had reported that first-quarter sales dropped from the fourth quarter, so this improvement is welcome. However, early indications seem to say that sales dropped versus 2021 for the same time period. He believes these sales figures are competing with last year’s stimulus checks that consumers got during the pandemic.

Cannabis prices seem to be falling as much as the stock prices. The analyst cited Cannabis Benchmarks and pointed out that wholesale prices nationwide (in the 18 states it tracks) averaged $1,057/lb for the week ending 7/1, down 16% from 4/1/22 and down 20% YTD (-35% you). “Regarding key MSO states that we track: AZ -9% seq and -45% YTD; CA -4% and -20%; CO -9% and -17%; CT -10% and -9%; IL +1% and -12%; MA -7% and -37%; MI +4% and -43%; NV -5% and -14%. We realize lower wholesale prices sometimes may be neutral for companies just focused on retail, but most of the MSOs that we track have cultivation and tend to be vertically integrated,” he wrote.

 

 


Debra BorchardtMay 18, 2022
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Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  released its financial results for the three months ended March 31, 2022, as revenue fell from the fourth quarter’s $217 million to the first quarter’s $214 million. Cresco Labs did note that the revenue increased 20% over last year’s $178 million for the same time period. This also beat the Yahoo Finance average analyst estimate for sales of $213 million.

Net losses for the quarter grew to $23 million over the fourth quarter’s net loss of $11 million. It was down slightly from last year’s net loss of $24 million for the same time period.

“Q1 was a solid quarter for the Cresco Labs team in a challenging environment for all consumer product categories. While our 10-state footprint saw a cumulative sequential contraction of 4.5%, we held or took market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry’s growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures. Notwithstanding, we continue to execute with a clear and focused strategy to obtain market leadership with a portfolio of cannabis brands consumers love and a plan to get them on as many shelves as possible. The strategy remains constant, and the Columbia Care acquisition announced in the quarter simply fits these stated priorities hand-in-glove. We are pairing the best consumer brands with a broad, deep and strategic footprint,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs.

Revenue Breakdown

Cresco noted that it had wholesale revenue of $95 million and maintains that it has a position as the #1 seller of branded cannabis products in U.S. with leading share in the flower, concentrates, and vape categories. Retail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter and same-store sales increased 9% year-over-year.

Cash Burn

The company is certainly sitting on a comfortable level of cash with $179 million on hand at the end of the quarter. However, the company burned through $44 million in cash in the quarter, a big jump from the cash used in the fourth quarter of $28 million.

“The first quarter showed the resilience and strength of the business we have built over the past few years. We remain focused on playing the long game and building a business that will be a lasting leader in the cannabis industry under any regulatory outcome. The compliance-focused foundation of both Cresco Labs and Columbia Care is helping ensure a smooth progression towards deal approval through a reasonable and manageable regulatory process. We recently crossed our first milestone by passing the federal HSR review process on May 16 and we do not expect state regulatory approvals to be an issue for our closing timeline,” Mr. Bachtell concluded.

On March 23, 2022, the company announced a definitive arrangement agreement whereby Cresco will acquire Columbia Care in an all-stock transaction.

 

 


StaffMarch 23, 2022
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7min1630

The Daily Hit is a recap of the day’s top business news for the cannabis industry for March 23, 2022.

On the Site

Cresco Labs

Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S. The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia. It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020. Read more here.

While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter. Read more here.

Agrify

Agrify Corporation (Nasdaq: AGFY)  announced financial results for the fourth quarter and fiscal year ended December 31, 2021, with revenue rising 481% to $25.3 million for the fourth quarter over last year’s $4.4 million for the same time period. It was also a big jump over the third quarter’s revenue of $15.8 million. Agrify delivered a net loss for the fourth quarter of $13.3 million, or $0.60 per diluted share, compared to a net loss of $13.1 million, or $2.23 per diluted share, in the prior-year period. Read more here.

In Other News

Aurora

 Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reached an agreement to acquire all of the issued and outstanding shares of TerraFarma Inc. (parent company of Thrive Cannabis) for $38 million payable in cash and Aurora common shares , plus two earnout amounts payable in Aurora Shares or cash, if applicable, based on Thrive achieving certain revenue targets within two years of the closing of the Transaction. Founded in 2018, Thrive is a licensed producer of super-premium cannabis concentrates and craft dried flower, and leverages innovative cultivation and extraction techniques with a singular focus on achieving the highest quality standards. Thrive is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis Co. (“Greybeard”), which amongst other accolades was recognized as the #1 brand recommended by Canadian budtenders in 2021, and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders. Read more here

Metrc

Metrc announced its new contract with the state of South Dakota to support the regulation of the state’s medical cannabis market. This marks Metrc’s 20th government contract to date nationwide for the implementation of its cannabis track-and-trace systems. “As South Dakota continues to ramp up their recently implemented medical cannabis market, we are thrilled to have the opportunity to spearhead the state’s first-ever track-and-trace program,” said Jeff Wells, CEO of Metrc. “Our team at Metrc is looking forward to working closely with the Departments of Health and Revenue, state regulators, and licensed operators to implement a strong regulatory framework that will effectively guide South Dakota’s newly emerging medical market down the path to success.” Read more here.


Debra BorchardtMarch 23, 2022
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4min1690

While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter.

A deeper dive into the quarterly revenue showed that wholesale revenue was $101 million and maintained the position as the number one seller of branded cannabis products in the U.S. with a leading share in the flower, concentrates, and vape categories. Retail revenue increased 10% sequentially, to $117 million, an average of $2.8 million per store. Same-store-sales increased 28% year-over-year, 1% sequentially.

Full Year Results

Cresco reported that revenue rose 73% in 2021 to $822 million over 2020’s $476 million. The net loss though was a whopping $296 million versus 2020’s net loss of $92 million.  The company said it ended the year with over $224 million of cash on hand.

“This has been an incredible year of growth and margin expansion for Cresco Labs. We generated $822 million in annual revenue, representing 73% annual growth. Adjusted EBITDA more than tripled as the investments we’ve made in the business start to bear fruit. We ended the year with 46 retail stores, more than double where we were at the end of last year. The Cresco Labs family expanded from approximately 2,300 employees to approximately 3,500, as we grew both organically and integrated five acquisitions,” said Charles Bachtell, Co-Founder, and CEO of Cresco Labs.

Growing Debt

Cresco noted in its release that total current liabilities crept up to $288 million by the end of 2021 from $252 million by the end of 2020. The total long-term liabilities also shot up to $694 million from 2020’s $404 million. The interest expense in 2021 was $51 million versus 2020’s $31 million.

“As we all saw, there was a slowing of market growth in the fourth quarter and we were not immune to this. The good news is our plan is working – consumers love our brands, we maintained our leadership as the #1 wholesaler of branded cannabis, and we were the most productive retailer in the industry. We competed very well, gaining or maintaining share in seven of our 10 states. We remain focused on driving growth for our shareholders through optimizing operations to drive margins and market share and by opening up new markets in which to sell our leading brands. With many more growth initiatives ahead, 2022 is set to be another record year as we continue to drive strategic breadth, depth and execute on our plan.”

 


StaffMarch 23, 2022
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6min2070

Republished from Crain Chicago by John Pletz.

The $2 billion purchase of Columbia Care gives Cresco access to new markets and cements Chicago’s place at the center of the legal-marijuana industry.

Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S.

The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia.

It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020.

The acquisition reinforces Chicago’s place at the center of the legal marijuana industry. Cresco is one of three large publicly traded cannabis companies headquartered in Chicago, along with Green Thumb Industries and Verano Holdings.

Cresco had $1 billion in sales last year, and Columbia Care had about $460 million. The combined companies would nominally be larger than Curaleaf, which had $1.2 billion in revenue. Cresco has 50 dispensaries and 21 cultivation facilities in 10 states. Columbia Care has 99 dispensaries and 32 cultivation facilities in 18 states. The combined companies have about 6,100 employees.

The deal puts Cresco in the 10 fastest-growing U.S. markets, including access to New Jersey, which is expected to begin recreational sales soon and become a $2 billion-a-year market, approaching the size of the Illinois market. The combined company will be the largest in Illinois, Pennsylvania, Colorado, and Virginia.

“The combination is highly complementary and provides unmatched scale, depth, diversification, and long-term growth,” Cresco CEO Charlie Bachtell said in a news release. “On a pro-forma basis, the combined company will be the largest cannabis company by revenue, the number one wholesaler of branded cannabis products, and the largest nationwide retail footprint outside of Florida.”

Getting a foothold in New Jersey will allow Cresco to remain in step with the largest multi-state cannabis companies, most of which have a presence in New Jersey. Acquiring Columbia Care also would provide Cresco an entry into Virginia, which will allow recreational sales. But Cresco and Columbia Care have overlapping operations in several states, including Illinois, where they might be forced to divest some operations. Cresco already has the maximum 10 dispensaries allowed by Illinois law, and Columbia Care has two dispensaries.

Both operate in the New York market, which also has approved recreational cannabis sales but has created limits on allowing “vertically integrated” companies that can grow and sell marijuana. Companies which already had medical marijuana licenses, such as Cresco and Columbia Care, were allowed to remain vertically integrated under the law. But it’s unclear whether regulators will allow two grandfathered entities to combine.

Florida, which only allows sales of medical marijuana, also doesn’t allow a company to own more than one license.

The deal would dramatically increase Cresco’s retail base. It’s the largest wholesale cannabis provider, getting roughly half its revenue from selling marijuana to retailers. After the Columbia Care acquisition, it would get two-thirds of revenue from retail.

Cresco said the deal provides a 16% premium to Columbia Care shareholders. Cresco, whose shares closed Tuesday at $6.53, has a market capitalization of about $2.5 billion. Columbia Care is valued at about $1 billion. The transaction is expected to close by the end of the year.

“We believe the acquisition may have considerable risk to close, given the significant footprint overlap and Cresco Labs having a spotty track record with three terminated acquisitions,” analyst Andrew Partheniou at Stifel GMP wrote in a note to clients.

Marijuana stocks have taken a beating in the past year, getting pummeled as hopes evaporated for federal marijuana legalization before inflation worries and the war in Ukraine tanked the broader market.

Before their deal was announced, shares of Cresco and Columbia Care were down by half over the past year.

Columbia Care is the largest of several recent acquisitions by Cresco. It bought Laurel Harvest Labs and Bay, which added dispensary and cultivation operations in Pennsylvania. Cresco also said it would expand in Massachusetts with the acquisition of Cultivate for as much as $158 million if certain targets are met.


StaffMarch 22, 2022
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The Westchester Business Journal reported that the planning board in the Town of Wawarsing in Ulster County has approved plans for Valley Agriceuticals LLC, whose parent company is Cresco Labs (OTC: CRLBF), to build 380,000-square-foot marijuana cultivation, manufacturing and distribution facility. The Business Journal said it was advised that passage of the approval resolution means that the developer can move forward with building the project. Once completed, the facility could end up employing over 300 people and Cresco has said it could be a $50 million investment for them.

In 2019, Cresco Labs Inc.(CSE: CL) (OTCQX: CRLBF) closed its acquisition of Gloucester Street Capital, LLC, the parent entity of Valley Agriceuticals, LLC via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of that acquisition, Cresco Labs holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. New York has legalized adult-use cannabis sales, but the program has not yet gotten underway.

According to the report, the facility will be built on a site covering 90.7 acres with 84.1 acres within the Town of Wawarsing and 6.6 acres in the Village of Ellenville. The site formerly was used as a manufacturing facility by the Schrade Knife company and Avnet Channel Master electronic components. Several cities in the country have given the green light to adult-use cannabis sales once the program is underway. They include Ellenville, Kingston, Lloyd, New Paltz, Rochester, Tuxedo, the town of Ulster, and the town of Warwick.

The article stated that the company says it intends to grow marijuana plants, produce marijuana products, and distribute those products from the facility. Cresco has 50 operational retail locations, 28 cultivation, and production facilities, and wholesales to over 1,000 dispensaries. The company had originally planned a large facility in the town Walkill in Orange County, but has changed its plans. The article also said that the facility would use about 98,000 gallons of water a day and its plans call for modifying two existing municipal lines to supply the plant’s water needs.

 


Debra BorchardtNovember 11, 2021
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3min631

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its financial results for the third quarter ending September 30, 2021, with revenue growing 2.6% sequentially to $215.5 million, and an increase of 40.6% year-over-year. Still, Cresco recorded a non-cash impairment charge of $291 million in the quarter as a result of the strategic shift in California operations. That resulted in a net loss for the quarter of $263 million.

Cresco reported a record net wholesale revenue of $109.3 million and record retail revenue of $106.2 million from 37 stores.

“Q3 was another outstanding quarter at Cresco Labs and a very strong start to the second half of the year. During the quarter, we replenished our balance sheet with non-dilutive capital, we closed a transformative acquisition in Massachusetts creating our third top three market share in a billion-dollar market, we announced several new deals to drive market depth, and we made massive improvements in bottom-line profitability as infrastructure investments began to bear fruit,” said Charles Bachtell, Co-Founder and CEO of Cresco Labs. “We are very proud of the record performance during a challenging quarter and continue to find that our differentiated strategy, localized for each individual state market, positions us to out-compete in both the current environment and long term. With many more growth initiatives up ahead, 2022 is set to be another record year, and we couldn’t be more excited for what’s to come as we continue driving strategic breadth, depth and execution.”

The company though is sitting pretty comfortably with current assets at $449.0 million, including cash and cash equivalents of $252.8 million. Cresco had working capital of $239.8 million and Senior Loan debt, net of discount and issuance costs, of $376.6 million. Following the end of the quarter, Cresco said it was buying Laurel Harvest Labs, LLC, a Pennsylvania Clinical Registrant and vertically integrated operator.

Outlook

Cresco reaffirmed the previously provided guidance of gross profit margins in excess of 50.0% in the remainder of 2021, adjusted EBITDA margin of at least 30.0% by the end of 2021 and revenue in the fourth quarter between $235 million and $245 million.


StaffOctober 15, 2021
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Cresco Labs (CSE:CL) (OTCQX:CRLBF)  is buying Pennsylvania-based Laurel Harvest Labs, LLC  in a deal valued at $80 million. The acquisition is expected to close in Q4 of 2021.

Laurel Harvest has one of the eight original Chapter 20 licenses in Pennsylvania. The company comes with approximately 52,000 sq. ft. of indoor grow/processing space and room for an additional 52,000 sq. ft. of indoor cultivation space. there is one operational dispensary in Montgomeryville PA and a second dispensary in Scranton is currently under construction. Laurel Harvest also has the option to open an additional four dispensaries throughout the state.

“As the medical market continues to grow and as legislators develop plans for adult-use, we are increasing our depth in the key state of Pennsylvania to strengthen our wholesale leadership while growing profitability and scale through new retail. This acquisition will provide Cresco Labs with immediate incremental cultivation capacity, simplify our ability to expand production capacity further, and add six additional retail dispensary permits in the state,” said Charlie Bachtell, CEO of Cresco Labs. “Importantly, we are excited to further our commitment in research and development through one of the few Chapter 20 clinical registrant licenses in the state. Laurel Harvest and its academic clinical research partner, Temple University, have established one of the most sophisticated cannabis research programs in the country. As an organization focused on normalizing and professionalizing the cannabis industry, we sincerely look forward to supporting and expanding upon this research that will continue to help create safe, effective and accessible cannabis products.”

Located in a medical-only state, Laurel Harvest is very focused on helping patients and research. The company has an academic clinical research partnership with Lewis Katz School of Medicine at Temple University. It is also conducting six ongoing cannabis research studies. The company has said with regards to its scientific mission,

We aim to be at the forefront of advancing research, science, and policy relating to the clinical benefits, limitations and uses of cannabinoids through evidence-based medicine. We will dedicate our resources and expertise to help patients understand how cannabis can help them improve wellness through science. To give our healthcare professionals access to the most credible and current research to help you understand how cannabis can impact your health and wellness.

Cresco Labs will report financial results for the third quarter ended September 30th, 2021 on Thursday, November 11th, 2021 before the market opens.


StaffSeptember 23, 2021
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Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) is buying Bay, LLC better known as Cure Pennsylvania in a deal valued at $90 million. The cash and stock acquisition is expected to close in the fourth quarter. The acquisition includes three operational Cure Penn dispensaries in Lancaster, Phoenixville, and Philadelphia. Cresco noted that the three new stores would be incremental and complementary to Cresco Labs’ four existing Sunnyside dispensaries in Pennsylvania

“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.”

Cure Cannabis also has locations in Colorado and Oklahoma, but the group originated in Colorado. It was also one of the early licensees in the state of Pennsylvania.

Expansion Moves

Just last month Cresco Labs closed on its acquisition of vertically integrated Cultivate which operates three cannabis dispensaries in Leicester, Worcester, and Framingham Massachusetts. the deal included approximately 42,000 square feet of active flowering canopy, bringing combined canopy in-state to approximately 64,000 square feet. The three dispensaries bring the combined retail storefronts in-state to four. Concurrent with closing, the company’s Fall River retail location transitioned to medical sales only.

“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.”

 


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