Cresco Expands In Ohio Market, Adding Four New Dispensaries
June 2, 2020Chicago, Illinois-based Cresco Labs is purchasing an additional four dispensaries in Ohio. Cresco has entered an agreement with Verdant Creations, which operates five dispensaries in the Buckeye State, the maximum allowed by state regulation. The transaction will add to Cresco’s one existing dispensary, giving it the maximum allowed. The stores in question are located in Cincinnati, Chillicothe, Marion, and Newark, Ohio.
Cresco will pay $375,000 in cash and $500,000 in Cresco subordinate voting shares for each location. Pending regulatory approval, the acquisition is expected to close in the fourth quarter of this year. Cresco recently reported earnings of $66.4 million for the first quarter of this year, a 60% gain quarter over quarter, attributable in large part to the opening of the Illinois market. Its net loss was $13.4 million and it achieved a positive adjusted EBITDA of $3.2 million.—Danny Sullivan
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