Cresco Labs (CSE: CL) has continued to sell off its properties and enter leaseback arrangements in a bid to generate cash for its capital intensive operation. The firm announced this morning that it has sold the property at which Illinois’ largest cultivation operation currently takes place in Lincoln. The sale and leaseback arrangement is the second that Cresco has entered within the state of Illinois.
Under the terms of the arrangement, Cresco Labs will sell its Lincoln, Illinois cultivation property to that of GreenAcreage Real Estate for a total sum of US$50 million. The firm subsequently entered a triple-net lease at the property to enable the continued operation of the cultivation facility. There is believed to be no additional funds provided for build out of the facility, however it appears that the funds generated from the sale will be put towards the further development of the building to enable larger scale cultivation.
When completed, the Lincoln facility is expected to be approximately 220,000 square feet in size, and is expected to be able to expand Cresco’s current market share of 25% to an even larger figure within the state.
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The sale of the Illinois property follows other financings recently conducted by Cresco, including a leaseback arrangement entered into for $38 million at the end of November for its Ohio properties, and a recently announced at-the-market offering that will be conducted over the next year for additional cash proceeds.
Cresco Labs last traded at $7.86 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.
