Cannabis Briefs for November 24November 24, 2020
•Chicago-based Cresco Labs posted revenues up 63% to $153 million quarter-on-quarter in the three months through September, as adjusted EBITDA jumped 182% to $46 million. Co-founder and CEO Charles Bachtell said Cresco’s focus on the wholesale market has paid off. According to the company, wholesale growth in the third quarter was driven by “an increase in harvests from expanded capacity in Illinois and Pennsylvania with strong growth in California,” while retail growth was driven by strong sequential same-store growth and two new store openings in Illinois. “As we look toward our next phase of growth, it’s rinse and repeat—the playbook will be applied to more states and, again, we will achieve meaningful, material market positions,” Bachtell said.
•Los Angeles-based Vertical Wellness has acquired the Organic Candy Factory, a producer of vegan and non-GMO gummy candies, in an all stock deal with no further financial details disclosed. The move will offer Vertical additional opportunities in the CBD edibles space and give it inroads in the health-conscious candy space, according to the company. In addition, the partnership will give the Organic Candy Factory access to Vertical’s routes-to-market, including in chain channels. Organic Candy Factory founders Piper and Ginger Cochrane will remain in leadership roles at the candy company.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.