Cresco Labs To Enter Florida Market Via Acquisition Of Bluma Wellness For US$1.12 Per Share

Cresco Labs (CSE: CL) is the newest market entrant to the state of Florida. The company this morning announced the entrance with the news that the company will be acquiring that of Bluma Wellness (CSE: BWEL.u) in an all-stock transaction that values Bluma at US$213 million.

The transaction will see Bluma shareholders receive 0.0859 of a subordinate voting share of Cresco Labs for each Bluma share held. The ratio implies a valuation of US$1.12 per Bluma share, a premium of 29% to the closing price of Bluma as of last night. Provisions are also in place to increase that ratio, should the price of Cresco Labs fall prior to closing the transaction.

The transaction will see Cresco enter the third most popularous state in the country, which currently has nearly half a million registered patients in its medical cannabis program. Bluma presently operates under the One Plant Florida banner, with seven dispensaries currently in operation and a further eight locations under control and currently slated to open. The small operator currently boasts the second highest in per-store sales of smokable flower, grown in its 54,000 square foot cultivation facility.

The transaction is currently slated to close in the second quarter of 2021, following approval from Bluma shareholders as well as regulatory and court approvals. Further, the board of directors of Bluma have determined that the transaction is fair from a financial perspective to Bluma shareholders.

Cresco Labs last traded at $16.59 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.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Origin House Secures Additional Short Term Loan

Origin House (CSE: OH) announced this morning that it had secured an additional short term...

Friday, September 20, 2019, 09:51:29 AM

US Cannabis: Illustrating The Performance Of The Top Four Issuers

The upcoming US election has renewed interest in CSE-listed American cannabis operators, many of which...

Monday, October 26, 2020, 12:30:00 PM

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 Terminates Acquisition of VidaCann

Cresco Labs (CSE: CL) announced this morning that it is terminating its previously announced acquisition...

Tuesday, November 26, 2019, 08:34:42 AM

Cresco Labs Acquires Three Pennsylvania Dispensaries For US$90 Million

Cresco Labs (CE: CL) is expanding its footprint in Pennsylvania. The expansion however does not...

Thursday, September 23, 2021, 09:00:20 AM