Cresco receives regulatory approval for New York marijuana license deal

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

Chicago-based Cresco Labs, one of the country’s largest multistate cannabis operators, received regulatory approval to acquire one of only 10 vertically integrated licenses in New York.

The license, which will allow for one cultivation and four dispensary facilities in the state, is linked to Cresco’s purchase of Valley Agriceuticals.

The acquisition is expected to close at the end of August.

It was first announced October 24 2018 with Cresco agreeing to pay $32.5 million in cash and over 13.47 million in shares, 5.3 million of which are contingent on certain targets being reached. As of today, that would imply a value of up to approximately $106 million.

Cresco trades under the ticker symbol CL on the Canadian Securities Exchange.

Valley Agriceuticals is developing a 75,000-square-foot cultivation and processing facility in Wallkill, New York.

The company operates two existing dispensaries in the state and plans to open two others within the next two weeks, Cresco said.

More details can be found in this news release.