Cresco Labs Cancels Acquisition Of ‘Top-Performing’ Marijuana Dispensary In Maryland
Vertically integrated cannabis company Cresco Labs (CSE:CL) (OTCQX:CRLBF) will not acquire Blair Wellness, LLC. a Baltimore Maryland medical cannabis dispensary. Cresco, based in Chicago, Illinois confirmed on Wednesday that it had terminated the previously announced agreement to acquire 100% of the outstanding equity interest in Blair Wellness.
“We have terminated the purchase agreement with Blair Wellness due to the failure of certain closing conditions to be met prior to our specified termination date,” said Charlie Bachtell, Cresco’s CEO & co-founder stated. “We will continue to look for other avenues to expand our footprint in Maryland, and execute our strategy of going deep in meaningful, material states.”
Previously, details noted the transaction would imply a 1.8x 2021 revenue multiple, satisfied through the payment of cash and a twenty-four (24) month promissory note. It was meant to be completed on a cash-free, debt-free basis with a mutually agreed-upon normalized target level of working capital.
The Blair Wellness acquisition was originally expected to close during Q4 2021. There are no termination fees associated with the transaction.
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Cresco Labs shares closed Tuesday market session 1.34% lower at $6.82 per share.
Photo: Courtesy of Cresco Labs