Monday, October 27, 2025

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Cresco Labs Enters US$282.5 Million Purchase Agreement for Tryke Companies

Cresco Labs (CSE: CL) announced this morning that it has entered a purchase agreement to the tune of US$282.5 million to acquire Nevada-based Tryke Companies. The firm has notable assets in the states of Nevada, Arizona, and Utah.

Cresco Labs

Total consideration for certain assets of Tryke Companies will total out at $252.5 million for operating assets, plus an addition $30 million for real estate assets. Total consideration will consists of approximately $227 million in Cresco Labs shares, and $55 million in the form of cash. In conjunction with the purchase, Cresco is entering a C$73.5 million underwriting lead by Canaccord Genuity as a means to pay for the purchase. Units will be sold at a price of $10 each, which consists of one common share and a half warrant with an exercise price at $12.50 for a period of three years.

In total, Cresco Labs is purchasing the following from Tryke Companies:

  • Four (4) Nevada retail locations under the “Reef” retail banner. Two are located in Las Vegas, one in Sparks, and one in Sun Valley.
  • Cultivation on a 12 acre parcel in Nevada, which will expand to 17,000 lbs per year in 2020.
  • Two (2) Arizona retail locations under the “Reef” banner, both of which are in the Phoenix area.
  • 27,000 square feet of cultivation and processing capacity in Phoenix, Arizona.
  • One of eight cultivation licenses in Utah.

Given the price tag, total assets acquired by Cresco Labs appears to be a bit light. However, the assets acquired in Nevada will increase the firms market share significantly, as the dispensaries are located in key regions. The assets reportedly generated US$70.4 million in sales in 2018, posting an EBITDA positive figure of $24.6 million for the period, with one North Las Vegas dispensary already posting $14.5 million in sales alone year to date, with over 2,300 transactions per day in August.

The purchase of Tryke Companies by Cresco Labs is anticipated to close bv mid 2020, after receiving state approval as well as passing antitrust laws. The associated financing is anticipated to close by September 24, 2019.

Cresco Labs closed Friday’s session at $10.50 per share. The full news release for today’s news can be found here.


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.

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