Cresco Labs (CE: CL) is expanding its footprint in Pennsylvania. The expansion however does not come cheap, with the firm agreeing to acquire Cure Pennsylvania for a total price tag of US$90 million.
The acquisition will see Cresco increase its operations in the state by a total of three dispensaries, with the three locations reportedly outperforming the average revenue for store metrics in the state. The firm also justified the price paid by stating that it will strengthen their wholesale market position within the state, as well as profitability.
The transaction is said to consist of both cash and stock to cover the US$90 million price tag of the firm. However, specifics were not provided by the company in terms of the breakdown. Interestingly, Cresco also added that it will be completed on a “cash-free, debt-free basis.”
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It is currently estimated that the transaction will close in the fourth quarter. The acquisition is set to bring the firms total retail footprint in the state to seven dispensaries, with the new locations located in Philadelphia, Lancaster, and Phoenixville.
Cresco Labs last traded at $11.00 on the CSE.
Information for this briefing was found via Sedar and Cresco Labs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
