Is Expanding Into Florida a Good Move for Cresco Labs?
On Jan. 14, Cresco Labs (OTC: CRLBF) announced that it would be expanding into Florida through the acquisition of Bluma Wellness. The all-share transaction will cost Cresco approximately $213 million worth of its stock, and in return Cresco will instantly gain seven dispensaries with the opportunity to open eight more. It's a strategic move for the company, but it's a risky one too.
Large multistate operators Curaleaf and Trulieve Cannabis (OTC: TCNNF) already have strong positions in Florida, which won't make it easy for Cresco to gain significant market share there. Let's take a closer look at the company's current business and the Florida market to determine whether this is a good move for the Cresco or if it will just lead to headaches for investors down the road.
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Source Fool.com
