Cresco Labs Completes US$90 Million Cure Pennsylvania Acquisition Deal

Cresco Labs (CSE: CL) disclosed on Thursday that it has closed the previously announced acquisition of Bay LLC, also known as Cure Pennsylvania. The firm announced in an earlier statement that the acquisition price is US$90 million.

While there are no specific details relayed regarding the manner of settling the transaction cost, the cannabis firm already stated that it would be satisfied at closing in a combination of cash and stock. It will also be completed “on a cash-free, debt-free basis” with a mutually agreed working capital target.

The acquisition entails three operational dispensaries by Cure Pennsylvania located in Lancaster, Phoenixville, and Philadelphia. “Between the acquisition of Cure Penn and the pending acquisition of Laurel Harvest, we are adding four new operational stores, licenses for five incremental stores, and 52 thousand square feet of indoor cultivation space in Pennsylvania,” said Cresco Labs CEO Charlie Bachtell.

The company is targeting to transition all of its stores in Pennsylvania to the Sunnyside brand by the end of Q1 2022.

Earlier this month, the firm reported its Q3 2021 financials headlined by $215.5 million in revenue. It also incurred a net loss of $263.5 million which was primarily driven by a $290.9 million impairment related to the writedown of intangible assets due to a “strategic shift in California operations.”

Cresco Labs last traded at $11.15 on the CSE.


Information for this briefing was found via Sedar and the companies mentioned. 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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Cresco Labs Announces US$200 Million Senior Secured Credit Agreement

Cresco Labs (CSE: CL) appears to be burning through cash like a madman. The firm...

Thursday, January 23, 2020, 08:32:43 AM

Cresco Labs Closes Acquisition Of Bluma Wellness

Cresco Labs (CSE: CL) has completed its acquisition of Bluma Wellness (CSE: BWEL.u), thus solidifying...

Thursday, April 15, 2021, 07:27:13 AM

Haywood Initiates Coverage On Cresco Labs With $14.00 Price Target

Last week, Haywood Securities initiated coverage on Cresco Labs (CSE: CL) with a C$14.00 price...

Wednesday, November 4, 2020, 01:59:00 PM

Cresco Labs: Consensus First Quarter 2021 Estimates

Cresco Labs (CSE: CL) announced that they will be reporting their first quarter financials before...

Tuesday, May 25, 2021, 11:51:00 AM

Stifel Releases Third Quarter Earning Preview For US Multi State Operators

Last week Stifel released their Q3 earnings preview for all the MSO’s while stating that...

Sunday, November 1, 2020, 01:43:00 PM