Cresco Labs Closes Sale-and-Leaseback With Innovative Industrial Properties for Michigan Facility
CHICAGO, April 23, 2020–(BUSINESS WIRE)–Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that it has completed the agreement to sell its Marshall, MI property to Innovative Industrial Properties, Inc. (“IIP”). The previously announced sale was for a consideration of approximately $16 million, which includes $11 million in funding for tenant improvements. The property represents approximately 115,000 square feet of industrial space in aggregate. This sale marks Cresco’s fifth completed sale-and-leaseback transaction, the fourth with IIP, which has unlocked a total of nearly $123 million in the last seven months.
We are pleased to announce the successful completion of yet another sale-and-leaseback transaction. This is directly aligned with our stated strategy of unlocking valuable capital and building a stronger foundation to support revenue growth, expand our retail presence across Michigan and enhance shareholder value.
Charlie Bachtell, Cresco Labs CEO and Co-founder
IIP has been our long-term capital partner across multiple states, and we are pleased to team up with them once again.
Concurrent with the closing of the sale, Cresco Labs will enter into a long-term, triple-net lease agreement with IIP and will continue to operate the property as a licensed cannabis cultivation and processing facility upon completion of redevelopment.
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 www.crescolabs.com.