Cresco Labs (CSE:CL) (OTCQX: CRLBF), the vertically integrated multistate operator, announced the execution of a definitive agreement to acquire 100% of the outstanding equity interests in Blair Wellness, LLC a Baltimore, Maryland medical cannabis dispensary. The transaction, made public on Tuesday, is expected to close in Q4 of 2021.
The Deal 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.
What’s In It For Cresco? 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 of operating in the market.
“We’re pleased to announce the signing of another immediately accretive acquisition in a key U.S. cannabis market,” said Charles Bachtell, Cresco’s CEO and co-founder. “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. Our retail team consistently demonstrates