Cresco Labs (CSE: CL) reported on Thursday the execution of an agreement to acquire 100% equity of Pennsylvania vertically integrated operator Laurel Harvest Labs. The acquisition is reported for total consideration of US$80 million.
“As the medical market continues to grow and as legislators develop plans for adult-use, we are increasing our depth in the key state of Pennsylvania to strengthen our wholesale leadership while growing profitability and scale through new retail,” said Cresco Labs CEO Charlie Bachtell. “This acquisition will provide Cresco Labs with immediate incremental cultivation capacity, simplify our ability to expand production capacity further, and add six additional retail dispensary permits in the state.”
The move comes less than a month after the firm announced that it has acquired three Pennsylvania dispensaries for US$90 million.
The acquisition includes an approximately 52,000 sq. ft. of indoor processing space, an additional 52,000 sq. ft. of potential indoor cultivation space, an operational dispensary in Montgomeryville, a second dispensary in Scranton currently under construction, and the ability to open an additional four dispensaries throughout the state.
The transaction is expected to close on Q4 2021, subject to customary closing conditions and regulatory approvals.
Earlier this month, the company reduced its revenue guidance for Q4 2021 to be between $235 million and $245 million after it has exited from exclusive distributorship agreements of certain third-party branded products in California.
Cresco Labs last traded at $10.29 on the CSE.
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