Cresco Labs Announces Closing Of Acquisition In New York State

Acquisition Adds One of Only 10 Vertically Integrated Cannabis Business Licenses Issued by the State of New York

ILLINOIS: Cresco Labs, one of the largest vertically integrated multi-state cannabis operators in the United States, today announced that it has closed its acquisition of 100% of the membership interests of Gloucester Street Capital, the parent entity of Valley Agriceuticals, via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of this acquisition, Cresco Labs now holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. The New York market is projected to grow to $500 million by 20221.

“New York is one of the most influential consumer markets in the world and we expect the state to act as a cornerstone in Cresco Labs’ plan to continue building the most strategic and valuable geographic footprint in the U.S. cannabis industry,” said Charles Bachtell, CEO and Co-founder of Cresco Labs. “Since recently receiving regulatory approval for this transaction, Valley Ag has opened two new dispensaries in Williamsburg, Brooklyn and Huntington, Long Island. As a result, Cresco Labs enters the New York market with four strategically located dispensaries. These assets position us well to immediately generate meaningful revenue from this market. As we fully implement the world-class branding, marketing and distribution expertise that has helped us to develop leading positions in some of the most attractive cannabis markets in the country, we expect to steadily increase our share of a market that is projected to grow to $500 million by 2022.”

“Cresco Labs has an incredible vision for the future of the cannabis industry, and they were the obvious choice to partner with based on their superior management team, focus on compliance and experience working across hyper-regulated industries,” said Gloucester Street Capital CEO Stephen Ashekian. “I believe their strategic decision making, commitment to social equity and priority for putting the patients first will make them a leader in the New York market.”

In addition to the new dispensaries in Williamsburg, Brooklyn and Huntington, Long Island, Cresco Labs also has operating dispensaries in Bardonia and New Hartford.

Currently a medical-use only market, New York has approximately 107,000 certified patients and 2,500 registered practitioners. The State’s medical cannabis program has 15 qualifying conditions including chronic pain, post-traumatic stress disorder (PTSD), and opioid replacement.

Cresco Labs Continues First To Market Strategy In Ohio By Facilitating First Legal Sale Of Medical Marijuana

OHIO: Cresco Labs, one of the largest vertically integrated multi-state cannabis operators in the United States, today announced the opening and first legal sale of medical marijuana in the state of Ohio at its CY+ dispensary, making this the second state medical marijuana program in which the Company has been first to market.

First Day Ohio MJJ“In Ohio, we are continuing our pattern of ‘firsts’ across the U.S. As a multi-state operator, we have repeatedly proven our ability to gain access to selected markets, get operational, distribute product and claim a first mover advantage in market share,” said Charlie Bachtell, CEO of Cresco Labs. “Following our similar achievement in Pennsylvania where we were the first operator to be approved and come to market as a cultivator, Ohio is the second state in a row where our expeditious path to market positioned us to serve the patients of the state by making the first legal sale of marijuana, officially launching Ohio’s statewide medical marijuana program.”

IMG_1077-1Cresco Labs’ new dispensary, named CY+ (pronounced “see why plus”), opened its doors on January 16 and offers a wide selection of pharmaceutical-grade marijuana for physician-certified patients across Ohio. In December 2018, Cresco Labs was granted the first certificate of operation for a medical marijuana dispensary in the state, over a month before other cannabis operators received the same approvals.

“Cresco has repeatedly scaled the steepest learning curves in the most highly regulated markets to get operational and to establish a dominant market position,” Bachtell added. “Our achievement in Ohio again shows Cresco Labs’ ability to efficiently put capital to use for the benefit of state programs, patients and our shareholders.”

In addition to the Wintersville dispensary, the Company has built an environmentally advanced 50,000-square-foot growing and cultivation facility located in Yellow Springs, Ohio that will supply statewide dispensaries.

CY+ will launch with flower only products but, in addition to other brands, will eventually carry Cresco’s full brand suite—Cresco, Remedi, Reserve, and Mindy’s Edibles, an infused edible line created by James Beard Award-winning chef Mindy Segal — providing a full suite of consistently dosed products catering to all consumers.

CY+ is located at 180 Main Street in Wintersville, Ohio and can be reached at 740/617-8649.