Cresco Labs Acquires Cultivate, Winning Market Share in Massachusetts
Cresco Labs (OTC: CRLBF) is enlarging its footprint in an important marijuana state. The company announced Thursday that it has signed an agreement to acquire Cultivate, a vertically integrated cannabis grower and retailer.
The up-front acquisition cost for Cresco is $90 million, and it's on the hook for as much as $68 million more in earnouts. That initial $90 million is comprised of $15 million in cash and $75 million in Cresco stock.
The money assets in the deal are Cultivate's two operating dispensaries, one of which is in the central Massachusetts town of Leicester, and the other in the Boston-vicinity municipality of Framingham. A third store in Worcester, near Leicester, should open for business by the end of June.
Source Fool.com
