Cresco Labs (OTCQX: CRLBF) announced that it has successfully entered the Florida cannabis market via acquisition. The company signed a letter of intent with VidaCann Ltd. (VidaCann) for an approximate $120 million in a mix of Cresco Labs common shares and cash. VidaCann’s Medical Marijuana Treatment Center license will allow for Cresco to sell its branded cannabis products in, as of right now, 30 different medical cannabis dispensaries in Florida.
The company will acquire the 7 dispensaries that VidaCann has currently open in Bradenton, Deerfield Beach, Holly Hill, Orlando, Palm Bay, St. Petersburg, and Tampa. An additional 14 dispensaries are expected to be completed and open for business sometime in the last few weeks of June 2019. VidaCann is estimated to have up to 20 dispensaries open by this year and will receive additional support on the construction of new cannabis dispensary locations from Cresco Labs. The strategic placement of all dispensaries is to guarantee that 95% of the state of Florida’s entire population is within 50 miles of a VidaCann dispensary.
Charlie Bachtell, Co-founder and Chief Executive Officer of Cresco Labs, stated: “Entering the Florida market is consistent with Cresco Labs' strategy of entering markets with outsized demand with strong regulatory structures and is an important milestone for the Company that dramatically impacts our growth trajectory and will be accretive to our earnings in 2019. Since launching its cannabis program in 2017, Florida has seen tremendous growth in patient registration and is one of the most important markets in the country. VidaCann is the perfect blend of an established operational footprint and infrastructure of professionals that will allow Cresco to execute its disciplined and strategic Florida plan expeditiously. We look forward to welcoming all of the 100 VidaCann employees to the Cresco Labs family.”
Issued shares of Cresco Labs to VidaCann are subject to a 6 to 12-month lock-up agreement after the agreement closes.
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