Cresco Labs acquires marijuana corporation Tryke for $282.five million

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Chicago-primarily based Cresco Labs, a single of the biggest multistate cannabis operators in the U.S., mentioned it is getting Tryke, a vertically integrated private cannabis corporation active in Nevada and Arizona.

Right here are the fundamentals about the announcement:

  • The acquire price tag for the transaction is $282.five million, created up of $55 million in money and the balance in stock.
  • Tryke posted income of $70.four million in fiscal 2018.
  • Tryke owns the Reef Dispensary brand, which contains six shops in Las Vegas and Phoenix.
  • There also are cultivation facilities in the deal in each Nevada and Arizona.

Cresco also will obtain access to a different operating state – Utah – exactly where Tryke at the moment has a single of just eight cultivation licenses.

Cresco mentioned it expects the deal to close in the 1st half of 2020, noting that it will most likely be topic to U.S. Division of Justice scrutiny beneath Hart-Scott-Rodino antitrust measures.

It at the moment has a different acquisition, Canadian-primarily based distributor Origin Property, also beneath such scrutiny.

Cresco mentioned it expects to close that deal by October 31.

Much more facts on the Tryke acquisition can be identified right here.

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

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