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Cresco Labs Buys its Way into Florida Cannabis Market – Cannabis Hemp Blog

Multistate Operator (MSO) Cresco Labs (CSE:CL,OTCQX:CRLBF) will expand its presence in the United States with a initial agreement for a Florida-based operation.

On Monday, March 18, the emerging MSO confirmed its pursuit of the medical-only market in Florida, which is expected to reach a value of US$1.7 billion in 2022 by Arcview Market Research and BDS Analytics.

The acquisition of VidaCann will cost Cresco Labs approximately $120 million in an undisclosed combination of cash and company stock. The shares will be part of a lockup that can last between six and 12 months.

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However, final numbers will be revealed as part of the final deal.

“Since relaunching its cannabis program in 2017, Florida has seen phenomenal growth in patient registration and is one of the largest markets in the country,” said Charlie Bachtell, CEO and co-founder of Cresco Labs, in a press release.

As part of VidaCann’s portfolio, Cresco Labs will secure seven currently active dispensaries in the state. VidaCann’s plans include three completed dispensaries lacking operational approval and four stores under construction that are expected to open by June.

Among one of the stores currently under construction in VidaCann’s pipeline is a store located in Miami.

If the Florida transaction closes, Cresco Labs will have a presence in Illinois, Pennsylvania, Ohio, Nevada, California and Arizona. The MSO is awaiting market share approval in Maryland and Massachusetts.

The acquisition will also give Cresco Labs the operation of the home of VidaCann-branded products that the MSO says are currently sold at 30 retail dispensaries in Florida.

On Monday, shares of Cresco closed with a price of C$12.36, representing a 6.37% increase for the day.

According to market analyst research aggregator site TipRanks, Cresco has a C$15 price target for its Canaccord Genuity Group (TSX:heart rate), indicating a premium of more than 20%.

Kim Rivers, CEO of Trulieve Cannabis (CSE:TRUEOTC Pink: TCNNF), tell the audience on Canaccord’s “Growth Investor Day,” she expects the issue of legalizing adult use to be addressed until the 2024 election.

During the same event, Cresco’s management team indicated in its outlook that Pennsylvania and Florida were the fastest growing medical markets in the United States.

At the time, the company confirmed its interest in “laser-focusing” Florida.

Despite the lack of a legal recreational market, space analysts agree that Florida is one of Most Attractive US States to Watch for investors.

“The state is in the early stages of adoption and we believe it will continue to support strong growth metrics as the medical program continues to evolve,” Haywood Securities analyst Neal Gilmer wrote in a research note.

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Securities Disclosure: I, Bryan McGovern, have no direct investment interests in any of the companies mentioned in this article.

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The post office Cresco Labs enters the cannabis market in Florida appeared first on Investment News Network.


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