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Cresco Labs To Sell Two Illinois Properties To Innovative Industrial Properties For $46.3 Million

September 27, 2019 2:27 pm
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Cresco Labs To Sell Two Illinois Properties To Innovative Industrial Properties For $46.3 Million

Cresco Labs Inc. (CSE:CL) (OTC: CRLBF) said Monday it has entered an agreement to sell its Kankakee, Illinois properties to Innovative Industrial Properties, Inc. (NYSE:IIPR) for $46.3 million.

The amount includes funding for additional tenant upgrades at the Kankakee property.  

What It Means

The properties account for around 100,000 square feet of industrial space in total, the company said.

At the same time, the company also signed a triple-net lease agreement with Innovative Industrial Properties and said it will carry on with the operation each property as cannabis processing and cultivation facility.

Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.

“This sale-and-leaseback agreement with IIP represents a non-dilutive capital solution for Cresco Labs that will support the expansion of our Illinois operations in preparation for the legalization of adult-use cannabis on January 1, 2020,” Charlie Bachtell, Cresco's CEO and co-founder, said in a statement. 

“A portion of the proceeds from the sale of the two properties will be utilized to create the scale in our cultivation capacity and retail dispensary network necessary to meet the significant increase in demand projected from the legalization of adult-use cannabis and the expansion of the medical-use program in Illinois.

Cresco Labs ahres were down 1.86% at $6.13 at the time of publication. 

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