Cresco Labs Closes $50M Sale-And-Leaseback Agreement With GreenAcreage

Cresco Labs CL CRLBF said Thursday it has closed an agreement to sell its Lincoln-based cannabis cultivation facility to GreenAcreage Real Estate Corp. for $50 million.

At the same time, Cresco will sign a triple-net lease agreement with GreenAcreage and will persist to run the property as licensed medical and recreational cannabis cultivation and processing facility.

Once completed, the property should cover 220,000 sq. feet, which would make it the biggest facility of its kind in Illinois, the company said in a press release.

See Also: Cresco Labs Completes First Harvest From Lincoln-Based Cultivation Facility

“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,” Cresco Labs CEO and Co-founder Charlie Bachtell said in a statement. “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 1^st and is projected to reach $2 billion to $4 billion in annual sales at maturityⁱⁱⁱ.

"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 stateⁱⁱ, 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.”

Cresco’s stock traded 6.6% higher to $6.40 at time of publication.