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Cresco Labs Terminates Proposed VidaCann Acquisition, Enters Sale-Leaseback Agreement With IIPR

Cresco Labs Terminates Proposed VidaCann Acquisition, Enters Sale-Leaseback Agreement With IIPR

The vertically integrated cannabis company Cresco Labs (CSE: CL) (OTC: CRLBF) reported Tuesday that it has entered a binding agreement for the sale-and-leaseback of two properties for total non-dilutive funding of around $38 million.

One property, Yellow Springs, is located in Ohio, and the other is in Marshall, Michigan. The company will sell these properties to Innovative Industrial Properties, Inc. (NYSE: IIPR).

In addition, Cresco Labs also disclosed the termination of the equity purchase agreement under which its subsidiary would have obtained the ownership interests of the assets of the medical cannabis dispensary operator VidaCann Ltd. and/or affiliated entities.

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“We recognize that responsibly allocating our shareholders’ capital is fundamental to long-term success. While it sometimes means making tough decisions, we are committed to executing on a superior capital agenda, responsibly accelerating the top and bottom-line, executing thoughtful and accretive M&A transactions and generating efficiencies as we scale,” Charlie Bachtell, Cresco's CEO and co-founder, said in a statement.

“With the flexibility to continue to leverage non-dilutive funding options like sale-lease-back agreements, we are well-positioned to continue executing on our strategy to build the most important, enduring company in U.S. cannabis.”

Cresco shares were down 0.7% at $5.71 at the time of publication Tuesday. 

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