CHICAGO, Oct. 30, 2018 /PRNewswire/ -- Cresco Labs, one of the largest vertically integrated multi-state cannabis operators in the United States, today announced that it has signed a definitive agreement to acquire FloraMedex, a premier Illinois medical cannabis dispensary located in the Chicago suburb of Elmwood Park. This will be Cresco Labs' third acquisition in Illinois with ownership interest in two other dispensaries, adding to the three cultivation and processing facilities owned in the state.
"This transaction will enhance our retail presence in Illinois, which is one of the strongest and most quickly evolving cannabis markets in the United States," said Cresco Labs CEO and Co-founder Charlie Bachtell. "Growth in the state has been driven by an increasing number of registered patients and the recently passed Illinois Alternatives to Opioids Act which vastly expands the population of patients that can access medical cannabis in place of pharmaceutical opioid medications. Looking ahead, we will continue to emphasize compliance, control, efficiency and product performance as we position Cresco for new opportunities presented in this dynamic industry."
FloraMedex features a loft-style environment which affords clientele ample space and comfort in an upscale urban environment and offers the highest quality medical cannabis products available in every delivery method. The dispensary has a solid and evolving patient base and is conveniently located on heavily trafficked Grand Avenue minutes away from popular retail businesses.
"Cresco's proposed acquisition of FloraMedex will give our employees an environment to allow them to grow in a corporate structure which a stand-alone dispensary never could offer," said Jared Boyar, Agent in Charge at FloraMedex. "When coupled with the benefits that our patient population will experience, it was a deal that made sense to all parties involved. The FloraMedex staff has been welcomed by Cresco and will continue to conduct the day-to-day operations to ensure a smooth transition for all."
Under the terms of the transaction, Cresco Labs will pay an undisclosed amount of cash for the deal, which is expected to close during the fourth quarter of 2018 subject to customary closing conditions. Cresco Labs is seeking approval to acquire FloraMedex and the acquisition is subject to approval from the Illinois Department of Financial and Professional Regulation (IDFPR).
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 with operations 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