Cresco Labs Taps GreenAcreage REIT for $50 Million with Illinois Sale/Leaseback Transaction

Cresco Labs Announces Receipt of US$50 Million in Additional Non-Dilutive Funding from GreenAcreage for Sale-and-Leaseback of Lincoln IL Cultivation Facility

Agreement further solidifies the Company’s balance sheet – enables the continued expansion of Cresco’s national footprint and its leading position in Illinois ahead of adult-use market launch

CHICAGO–December 12, 2019–(BUSINESS WIRE)–Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, today announced the closing of an agreement (the “Agreement”) to sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (“GreenAcreage”), for USD$50 million. Concurrent with the closing of the sale, Cresco has agreed to enter into a long-term, triple-net lease agreement with GreenAcreage and will continue to operate the property as a licensed medical & recreational cannabis cultivation and processing facility. Cresco’s Lincoln property is expected to be 220,000 square feet when completed, making it the largest such facility in Illinois¹. With more production capacity than any other cannabis company in the state, Cresco is positioned to grow its already leading 25% market share².

This Agreement is representative of the comprehensive approach to capital planning that we anticipate will ensure our future success, while enabling us to grow our footprint both rapidly and responsibly. We have several opportunities right in front of us, including in our home market of Illinois, which will be moving forward with adult-use legalization on January 1st and is projected to reach $2 billion to $4 billion in annual sales at maturity³.

Charlie Bachtell, Cresco Labs CEO and Co-founder

Illinois represents one of the largest opportunities in U.S. cannabis and we feel Cresco is uniquely situated to maintain and expand its leading market position in the state², with a cultivation footprint and growth plan unmatched by any other player in the market, a portfolio of well-known and accepted branded products and a strategically located retail footprint.

Enhancing Capital Position

The Company has continued to strengthen its balance sheet and enhance its financial flexibility since the end of Q3-2019. Cresco’s capital is primarily earmarked for projects expected to drive strong, sustainable returns on capital for shareholders.

  • Cresco’s balance sheet ending Q3-2019 included a cash and cash equivalents balance of $73.7 million, a working capital position of $144.6 million and zero debt.
  • On November 26, 2019, Cresco announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities for $38 million.
  • On December 3, 2019, the Company established an at-the-market program (“ATM”) with a two-year term. While the Company has no intention to utilize the ATM immediately, it rounds out Cresco’s comprehensive approach to capital strategy by providing the Company with the security of readily accessible future capital, if needed, at what is expected to be a more attractive cost of capital and lower dilution than other alternatives in the current environment.

Access to capital is critical for cannabis industry operators to build scale and grow. We are excited to acquire this facility from Cresco, an industry and market leader, to fuel their continued success in Illinois.

Katie Barthmaier, Chief Executive Officer of GreenAcreage

“We are confident that today’s announcement, together with the measured steps we continue to take to strengthen our capital position and continue investing in strategic U.S. cannabis markets, will generate significant returns for our shareholders, our employees and the communities in which we operate,” concluded Cresco CEO Charlie Bachtell.

About Cresco Labs

Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at

¹State of Illinois, Department of Agriculture cannabis cultivation licenses.
²According to monthly State of Illinois wholesale sales figures, Cresco has the leading market share in the state with approximately 25% market share.
³Illinois is projected to be a $2-4 billion dollar market at maturity according to Marijuana Business Daily making it one of largest cannabis markets in US.

Original press release

Published by NCV Newswire
NCV Newswire
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