Cresco blames cash component for abandoning VidaCann deal, eyes leasebacks for cash

Amid volatile stock prices, acquisitions based on share-swap agreements are more likely to close than those with a lot of cash consideration or with a fixed-dollar amount to be paid in equity.

We saw this again today as Cresco walked away from its pending acquisition of VidaCann to focus its cash on existing operations and announced a $38 million sale-leaseback to help fund its growth plans and the pending Tryke acquisition.

Share swaps share the rise or fall in stock prices more evenly between buyer and seller, while cash or fixed equity favor the seller if the buyer’s stock falls.

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