Cresco Labs All Set to Acquire Three Highly Successful Cure Penn Dispensaries in Pennsylvania
Cresco Labs (CSE:CL) (OTCQX:CRLBF) has announced today that it is all set to acquire three hugely profitable dispensaries in Pennsylvania. These three dispensaries are the top-most performing dispensaries of Cure Penn. The acquisition is on its way as both companies have signed the definitive agreement.
About Cresco Labs
Cresco Labs is a U.S.-based cannabis operator. The company functions in multiple states of the U.S. The operations of the company are handled centrally by the management. Cresco Labs exists in the market with an aim to make the medical use of cannabis products normal and professional.
It works on the business model of consumer-packaged goods and is known as the largest wholesaler of the U.S. market. The medical marijuana company is home to some of the well-known and reputed brands in the world. The portfolio of the brands includes names like Cresco, Mindy’s Edibles, High Supply, Remedi, Good News, FloraCal Farms, and Wonder Wellness Co.
All the brands are retailed in the market through Sunnyside, the national dispensary of Cresco Labs.
As a part of its initiatives, Cresco operates SEED which stands for Social Equity and Educational Development Initiative. Under SEED, the company assumes the role to inculcate the skills, knowledge, and basic training among the employees who have the potential to be a part of the cannabis industry.
Both, Cresco Labs and Cure Penn have something interesting to look forward to in the life of their companies. Cresco Labs, a vertically integrated U.S.-based cannabis company, announced that it has executed the definitive agreement with Cure Penn, owner of three high-performing dispensaries in Pennsylvania. The acquisition was announced today.
As per the terms of the definitive agreement, Cresco Labs will acquire all the outstanding equity interests in Cure Penn. This amounts to Cresco Labs acquiring 100% of the outstanding equity interests in Cure Penn.
The estimated value of the acquisition stands at $90 million.
Charlie Bachtell, the Chief Executive Officer and Co-Founder of Cresco Labs, said that he was thrilled with signing the definitive agreement with Cure Penn. He added that the company expects to expand its retail footprints in the market of Pennsylvania through the acquisition of Cure Penn.
Cresco Labs has always been focusing on strengthening its position in the strategic market of the cannabis industry. With the definitive agreement in place, Charlie Bachtell has highlighted that the company still continues to pursue its expansion activity.
The depth in the strategic market is achieved by the company by allocating rigorous capital. Signing the definitive agreement with Cure Penn makes this more evident.
After the announcement of the acquisition, the management of Cresco Labs is now looking forward to growing its home of brands.
The three high-performing dispensaries are located in Lancaster, Philadelphia, and Phoenixville. The dispensary of Cure Penn that is located in Philadelphia would work on similar lines as that of the dispensary of Cresco Labs that is already present there. Cresco Labs currently has four dispensaries in Philadelphia under the national brand name of Sunnyside. The number after the acquisition would change to five.
Details Related To The Transaction
The total value of the acquisition stands at $90 million. The aggregate value of consideration would be settled with a mix of cash and stock. Both the companies are yet to finalize the ratio. Once the acquisition is executed, the companies are expected to declare how much of $90 million has been settled in cash and how much has been settled in stock.
The nature of the transaction would be free of cash and debt. The general level of working capital would be agreed upon by both companies at the time of acquisition.
All the transactions are subject to approvals and receipts from Canadian Securities Exchange and other relevant regulatory approvals.