Cresco Labs Receives Ohio Processing License Following Verdant Dispensary Deal
Cresco Labs (CSE:CL) (OTCQX: CRLBF) confirmed Monday it has obtained a provisional processing license for cannabis oil extraction and manufacture of cannabis products within Ohio. The permit allows the Chicago-based company to sell its brands within the state.
“We continue to believe that to win in this industry, you need to create meaningful, material positions in the most strategic states possible,” said Cresco CEO and co-founder Charlie Bachtell.
The licensing comes on the heels of a purchase the company made in Ohio two weeks ago.
Cresco bought four Verdant Creations dispensaries, located across the state, for $375,000 in cash and $500,000 of its subordinate voting shares.
Once the deal closes and Cresco receives approval from the Ohio Board of Pharmacy, it will run five dispensaries in the state.
“Our company currently only sells flower into 60% of Ohio’s dispensaries, and we’re excited to introduce our House of Brands and a full suite of products, including vape pens, concentrates, and edibles, to patients in the state,” Bachtell added.
The company has been expanding its presence within the country, including Illinois and Pennsylvania.
In April, a cannabis REIT Innovative Industrial Properties Inc. (NYSE: IIPR) inked a triple-net lease agreement with Cresco’s subsidiary for the property Cresco intends to run as a cannabis cultivation and processing facility.
IIP agreed to purchase the 25,000 square feet cultivation for $5 million and to fund the undergoing upgrades to the property managed by Cresco, with an additional $11 million.
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