Crucial Transaction Highlights and Added benefits:
Vertically Integrated Florida License – Offers Cresco Labs a Health-related Marijuana Therapy Center license to develop, method, manufacture, distribute and dispense the Company’s home of branded merchandise in up to, presently, 30 retail healthcare dispensaries in the state of Florida.
Retail Dispensary Footprint & Rollout – VidaCann presently operates seven (7) dispensaries in the cities of Bradenton, Deerfield Beach, Holly Hill, Orlando, Palm Bay, St. Petersburg, and Tampa and expects to have 14 dispensaries open by the finish of June 2019.
Further dispensary places in Tallahassee, Bonita Springs and Port Charlotte are completed and pending operational approval, and places in Jacksonville, West Palm Beach, Miami and Pensacola are presently below building and scheduled to open by the finish of June 2019.
VidaCann is projected to have up to 20 dispensaries by the finish of 2019, though Cresco intends to additional accelerate the VidaCann retail dispensary rollout. Dispensary places are strategically positioned all through the state to assure 95% of the population of Florida is inside 50 miles of a VidaCann dispensary. Delivery is readily available statewide to all licensed individuals.
Operational Cultivation and Processing – A totally-operational, greenhouse cultivation facility with a state-of-the-art cGMP-certified processing and analytical lab, meeting all FDA needs.
Totally operational 70,000 ft2 cultivation and processing facility is scheduled to double in size by the finish of 2019 and will permit Cresco Labs to develop and manufacture its complete suite of branded merchandise for distribution across the state.
The greenhouse maintains additional than 30 premium strains and VidaCann is the only Florida cannabis business working with custom-produced Italian extractors that can method more than 400 pounds a day.
“Entering the Florida market place is constant with Cresco Labs technique of getting into markets with outsized demand with sturdy regulatory structures and is an critical milestone for the Organization that substantially impacts our development trajectory and will be accretive to our earnings in 2019,” mentioned Cresco Labs CEO and Co-founder Charlie Bachtell. “Since relaunching its cannabis plan in 2017, Florida has noticed tremendous development in patient registration and is 1 of the most critical markets in the nation. VidaCann is the excellent blend of an established operational footprint and infrastructure of experts that will permit Cresco to execute its disciplined and strategic Florida program expeditiously.” Bachtell added, “We appear forward to welcoming all of the 100 VidaCann workers to the Cresco Labs family members.”
“Matching our established capability to execute operationally with unparalleled speed to the foundation currently established by VidaCann, we anticipate to effectively scale our Florida operations, right away effect the market place, and get the very same higher price of market place share that we have accomplished in other states in which we operate. We are excited to bring the Cresco Labs’ brand of qualified cannabis to the individuals of Florida and to all stakeholders involved with this plan,” mentioned Cresco Labs President and Co-founder Joe Caltabiano.
Florida Market place:
According to Arcview Market place Study/BDS Analytics, the healthcare cannabis market place in Florida is projected to boost to $1.7 billion by 2022 mostly primarily based on growing patient count – there are now presently additional than two,000 certified ordering physicians and practically 200,000 registered individuals (upon 200,000 individuals, VidaCann will have the capability to boost its dispensaries to 35) with total healthcare individuals estimated to attain 550,000 by 2022. With a population of roughly 21 million, the Florida market place will boost Cresco Labs’ total addressable customer base to additional than 140 million men and women.
Cresco Labs Footprint:
Upon the closing of the Transaction, Cresco Labs will have 14 production facilities and 21 retail dispensaries operating with licenses to operate a total of 51 retail dispensaries across 10 states – Illinois, Pennsylvania, Ohio, Nevada, California, Arizona, Florida with New York, Maryland and Massachusetts pending approval. The Company’s merchandise are presently on the shelves of more than 250 dispensaries. Cresco Labs is operational in six of the seven most populated states in the nation and has additional than 140 million prospective customers which is 65% of the estimated total addressable US cannabis market place.
The obtain consideration is roughly $120 million and will be comprised of a mix of Cresco Labs shares, which will be topic to a six to 12-month lock-up agreement following closing, and money. The final obtain cost and proportion of money and stock to be determined and reflected in the definitive agreement.
Completion of due diligence and execution of a definitive transaction agreement is anticipated inside two weeks. The Transaction is anticipated to close for the duration of the second quarter and will be topic to customary closing circumstances, like approval from the CSE, the Florida Division of Overall health and all applicable U.S. regulatory agencies.
VidaCann has been operational considering that 2018 and their year-finish financials have not however been finalized.
Canaccord Genuity Corp. is acting as monetary advisor to Cresco Labs and Bennett Jones is acting as Canadian legal advisor.
About Cresco Labs: