Thursday, September 18, 2025

Cresco Labs Terminates Acquisition of VidaCann

Cresco Labs (CSE: CL) announced this morning that it is terminating its previously announced acquisition of VidaCann Ltd. The firms justification, in short, is that they simply don’t have the funds available to close the transaction, or to operate the resulting entity as the firm continues to face capital restrictions.

Concurrent with the announcement of the termination of the acquisition agreement, Cresco also announced that it will be selling additional properties in leaseback arrangements with Innovative Industrial Properties (NYSE: IIPR). The properties, located in Yellow Springs, Ohio, and Marshall, Michigan, will be sold for a combined US$38 million, includes certain undisclosed facility development funds as well. Cresco previously sold two Illinois properties to the same firm which also followed with triple net leaseback arrangements.

The fallout of the VidaCann arrangement is expected to reduce near term cash requirements by approximately $120 million. The acquisition for the Florida operating was pegged at $120 million when announced, and indicated to be comprised of both cash and shares, however within today’s announcement Cresco indicated that it was largely to be comprised of cash.

With these two announcements, we have effectively strengthened our balance sheet to the tune of nearly $158 millioni between new non-dilutive funding and the elimination of a significant near-term cash outlay earmarked for the Transaction. The team and operations at VidaCann are phenomenal, but with a focus on managing our cost of capital, and insuring the most efficient and highest return on invested capital, the ability to deploy resources to other, existing, Cresco markets that are widely considered some of the top markets in the US, like Illinois, Pennsylvania, California and Nevada, has to take priority.

Cresco Labs CEO and Co-founder Charlie Bachtell

The termination of Cresco Labs’ acquisition of VidaCann follows the amendment of the Origin House (CSE: OH) purchase announced two weeks ago.

Cresco Labs last traded at $7.62 on the CSE.


Information for this briefing was found via Sedar, Cresco Labs and Origin House. 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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