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Cresco Labs To Enter Michigan Market Following State Pre-Qualification

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Cresco Labs To Enter Michigan Market Following State Pre-Qualification

Cresco Labs (OTC: CRLBF) said Monday it was pre-qualified for a cultivation and processing license by Michigan's Department of Licensing and Regulatory Affairs Medical Marijuana Licensing Board.

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What Happened

Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the country, said it completed the most comprehensive portion of Michigan's application process. The pre-qualification for a license allows the company to enter the Michigan market and to move forward with the licensing process for its facilities. 

The company applied for a cultivation and processing facility to be located in a former factory in Marshall, Michigan with a capacity of over 100,000 square feet. Cresco has already received local approval to build and operate the facility pending final approval of its state license.

Why It's Important

Michigan legalized recreational marijuana on Dec. 6. As the 10th-largest state in the country with population of nearly 10 million people, Michigan could become one of the largest cannabis markets in the U.S.

BDS Analytics and Arcview Market Research project that the cannabis spending in Michigan could grow from $869 million last year to $1.4 billion by 2022.

In recent months, a number of companies announced their entry into the Michigan market.

In February, Tidal announced the acquisition of MichiCann Medical. Last week, Green Peak Innovations said it closed a mezzanine debt round that would fuel its expansion in the state.

What's Next

Once it's licensed to operate in Michigan and completes its acquisition in Florida, Cresco Labs will have 15 production facilities, 21 dispensaries and licenses to operate 51 dispensaries across 11 states. 

Cresco Labs CEO and co-founder Charlie Bachtell said the company expects to replicate the process that allowed Cresco to quickly become operational in other states and to offer their full suite of brands available to patients. 

Related Links:

Canopy Growth Receives License For New Brunswick Facility From Health Canada

MedMen Receives $250M Investment From Gotham Green Partners

Photo courtesy of Cresco Labs. 

Posted-In: Department of Licensing and Regulatory Affairs Medical Marijuana Licensing Board marijuana pot weedCannabis Government Regulations Markets Best of Benzinga

 

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