Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced today the execution of a definitive agreement to acquire 100% of the outstanding equity interests in Blair Wellness, LLC (“Blair Wellness”), a Baltimore, Maryland medical cannabis dispensary (the “Transaction”). The Transaction is expected to close in Q4 of 2021.
Cresco Labs Announced a Definitive Agreement to Acquire Blair Wellness Center in Maryland (Photo: Business Wire)
“We’re pleased to announce the signing of another immediately accretive acquisition in a key U.S. cannabis market. This acquisition of Blair Wellness will represent a step toward building a meaningful, material position for Cresco Labs in Maryland – a state with tremendous growth potential over the coming years,” said Charles Bachtell, CEO and co-founder of Cresco Labs. “Our retail team consistently demonstrates the efficiency and effectiveness of the Sunnyside operating model, with our stores generating more revenue than respective state averages – Blair Wellness is no different, with revenue consistently higher than double the Maryland state average. As we expand operations across our footprint, we will continue to add high volume dispensaries that drive depth in strategic markets and complement our wholesale operations. We look forward to the incredible Blair Wellness team joining the Cresco Family!”
Operational Highlights
- One of the top performing dispensaries in Maryland
- 6,500 sq. ft. building located minutes from downtown Baltimore and centrally located between the city’s numerous universities
- Strong patient/customer retention from more than three years operating in market
Maryland Market Highlights
- 18th most populous state in the U.S. with approx. 6 million people
- Robust medical market growth with annualized retail sales over $500M
- Constructive commentary from Maryland House and Senate on an adult-use bill in 2022
Transaction Details
The Transaction implies a 1.8x 2021 revenue multiple, satisfied through the payment of cash and a twenty-four (24) month promissory note. The Transaction will be completed on a cash-free, debt-free basis with a mutually agreed upon normalized target level of working capital. The cash consideration would be payable upon closing of the Transaction.
The closing of the Transaction is subject to, among other things, the approval and receipt of all required CSE and regulatory approvals.
