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Cresco Labs to Acquire Laurel Harvest to Expand Leadership in Cannabis Market
Friday 15 October 2021

Chicago-based cannabis products wholesaler Cresco Labs (CSE: CL) (OTCQX: CRLBF) has agreed to acquire 100% of the outstanding equity interests in Pennsylvania-based full service marijuana dispensary Laurel Harvest Labs, LLC for USD 80m, the company said.

The Transaction will be completed on a cash-free, debt-free basis with a mutually agreed upon normalised target level of working capital. The Transaction is expected to close in Q4 of 2021.

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 Transaction will include a newly constructed indoor cultivation facility in Lancaster County allowing for new cultivation capacity, the foundation to expand the facility further, and another strategic point of distribution that is complementary to Cresco Labs' cultivation facility in Brookville.

As part of the acquisition, Cresco Labs will also acquire the real estate of Laurel Harvest's cultivation facility and Scranton dispensary.

The Purchase Price would be payable upon closing of the Transaction, subject to the adjustments and lock-up agreements contained in the definitive agreements and will be comprised of a mix of cash and stock.

Cresco Labs Inc. is a vertically integrated multistate cannabis operator with brands that meet the needs of all consumer segments and comprised of some of the most recognised and trusted national brands.
Date Published: 15/10/2021