Chicago-based Cresco Labs Inc., one of the largest seed-to-sale cannabis companies in the United States, is all set to enter the Florida market with the acquisition of VidaCann Ltd., a Jacksonville-based cannabis provider, for a whopping $120 million.
The purchase though will comprise of a mix of cash and Cresco Lab Shares, subject to a 6-12 month lock-up agreement after closing. The transaction is expected to close during the second quarter of 2019.
With this acquisition, Cresco Labs gets Medical Marijuana Treatment Center license to grow, process, manufacture, distribute and dispense its products in as many as 30 retail medical dispensaries in the sunshine state, distributed across cities like Deerfield Beach, Bradenton Orlando, Palm Bay, and Tampa.
The company now has access to an analytics lab and a fully-operational greenhouse that is scheduled to double in size by the end of this year. Cresco is looking forward to opening 20 more dispensaries in the same time frame.
As per the agreement, all hundred employees of VidaCann will be retained. Reportedly, the deal also expands Cresco Labs’ access to 65% of the addressable U.S. cannabis market.
The Chicago-based company is known not only for its smokable products but also for its line of edibles made by James Beard Award-winning chef Mindy Segal.
“Matching our proven ability to execute operationally with unparalleled speed to the foundation already established by VidaCann, we expect to efficiently scale our Florida operations, immediately impact the market, and get the same high rate of market share that we have achieved in other states in which we operate,” said Joe Caltabiano, Cresco Labs President & Co-Founder.
According to the Florida Department of Health, the state presently has 250,186 medical marijuana patients enrolled in its medical program. As the number of patients is increasing with each passing day, the Florida state government is issuing dispensary licenses without any delays. Consider this, for instance, In April 2018, Florida had only 32 licensed retail locations; however, by the end of the year, 82 retailers were catering to the needs of the patients.