Cresco Labs Acquires Assets in Massachusetts with First Cannabis Harvest Planned for Spring 2019
CHICAGO--(BUSINESS WIRE)--Dec 6, 2018--Cresco Labs, (CSE:CL) one of the largest vertically integrated multistate cannabis operators in the United States, today announced a definitive agreement to acquire 100% of the shares and membership interests of Hope Heal Health, Inc. (“HHH”) and an affiliated real estate entity. The HHH assets include state registration and licensing that will allow for cultivation, manufacturing, processing, and the establishment and operation of a medical marijuana dispensary, with the ability to obtain up to three medical marijuana dispensary licenses and three adult-use dispensary licenses. HHH has entered into host community agreements with the Massachusetts municipalities of Rockland, North Attleborough and Fall River for medical cannabis dispensaries, subject to site approval, and is in the process of applying for adult-use licenses from the Massachusetts Cannabis Control Commission. This transaction is not a material transaction for the company and closing is expected to occur in the first quarter of 2019, subject to receipt of applicable regulatory approvals and other customary closing conditions.
“Massachusetts adds another attractive, high value market to our national footprint,” said Charles Bachtell, CEO of Cresco Labs. “Up until now, the medical patients of Massachusetts have had limited access to relief. We look forward to utilizing our strong capital resources, proven executional abilities, and our vertically integrated and streamlined growth-manufacturing-retail model to serve these patients and develop meaningful market share as we have in Illinois and Pennsylvania.”
HHH’s 150,000 1 square foot cultivation facility in Fall River planted its first crop this week with an expected harvest in the first quarter of 2019. Cresco Labs has proven its execution efficiency with an unparalleled speed to market in the state of Pennsylvania, where it operates growing and processing facilities and three retail stores. Cresco hopes to achieve similar accomplishments in Massachusetts, subject to site approvals and barring any unforeseen delays.
About Cresco Labs, LLC:
Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis with operations in seven states (Illinois, Ohio, Pennsylvania, Nevada, California, Arizona and Massachusetts), and approval pending in two more states (New York and Maryland), the company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry. Its unparalleled speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a well-defined brand strategy that is tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at crescolabs.com.
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the company’s CSE Listing Statement filed with SEDAR; and other factors, many of which are beyond the control of the Company. In particular, no assurance can be given that the HHH acquisition will be completed on the terms or in the timeframe contemplated by this news release, or at all; nor as to the timing of obtaining necessary site approvals and satisfying other conditions to commercialization; nor as to the timing or yields of HHH’s first crop or future crops; nor as to potential operational or integration challenges in future as a result of increased competition or regulation or other factors. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco’s shares. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty to update or supplement any information provided in this press release or otherwise.
1 150,000 square feet represents the total size of the existing structure. The first phase of construction of 40,000 square feet is currently underway which will include canopy space, processing, office and a retail dispensary. The remaining 110,000 square feet will be gradually built out throughout 2019 based on product demand.
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KEYWORD: UNITED STATES NORTH AMERICA CANADA ILLINOIS
INDUSTRY KEYWORD: HEALTH ALTERNATIVE MEDICINE NATURAL RESOURCES AGRICULTURE RETAIL SPECIALTY
SOURCE: Cresco Labs
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PUB: 12/06/2018 07:14 AM/DISC: 12/06/2018 07:14 AM