CHICAGO, Oct. 29, 2018 /PRNewswire/ -- Cresco Labs, one of the largest multi-state vertically integrated cannabis operators in the United States, today announced its acquisition of licenses and assets in the state of Arizona. This marks Cresco Labs' second acquisition in Arizona, adding two cultivation facilities, one processing facility and one dispensary to a cultivation, processing and dispensary operation already owned near Phoenix.
"Arizona is a state closely aligned with our strategic focus on entering markets with great patient participation, sound regulatory structures and a need for consumer-focused and consistent, quality cannabis products," said Cresco Labs CEO and Co-founder Charlie Bachtell. "At Cresco Labs, we have already successfully scaled the steepest learnings curves in the most highly regulated markets such as Illinois, Ohio and Pennsylvania. As a result, we are able to replicate our process to expand into other markets expeditiously and are excited to broaden our scale in the great state of Arizona."
Cresco has entered into a definitive agreement to acquire Arizona Facilities Supply, LLC ("AFS") and certain of its subsidiaries for cash and equity consideration. AFS provides management and advisory services to Encanto Green Cross Dispensary, a non-profit entity that holds a vertical license to cultivate, process and dispense medical marijuana in the State of Arizona, operates a medical marijuana dispensary in Phoenix, Arizona, and owns real property used for cultivation in Salome, Arizona. Closing of the transaction is expected to take place in the fourth quarter of 2018 or the first quarter of 2019, subject to receipt of applicable regulatory approvals.
With an established presence in Arizona, Cresco Labs holds an ownership interest in an existing operation consisting of a vertically integrated license with cultivation, processing, and one dispensary location near Phoenix. Arizona is one of the nation's sizable medical cannabis programs with over 170,000 registered patients.
About Cresco Labs, LLC:
Cresco Labs, based in Chicago, is a leader in elevating the US cannabis industry through experienced management, access to capital and a proven growth strategy. As a differentiated grower, processor and retailer of premium cannabis in six states (IL, OH, PA, NV, CA and AZ), the company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry. Its unparalleled speed-to-market—seven months from breaking ground to delivering products to customers—gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco's proven ability to execute is complemented by a well-defined brand strategy that is tailored to different consumer profiles, ranging from medicinal, upscale, lifestyle, and culinary-backed edibles by James Beard award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at crescolabs.com.
SOURCE Cresco Labs