Chicago-based Cresco Labs, one of the largest multistate cannabis operators in the U.S., said it is buying Tryke, a vertically integrated private cannabis company active in Nevada and Arizona.
Here are the basics around the announcement:
- The purchase price for the transaction is $282.5 million, made up of $55 million in cash and the balance in stock.
- Tryke posted revenue of $70.4 million in fiscal 2018.
- Tryke owns the Reef Dispensary brand, which includes six stores in Las Vegas and Phoenix.
- There also are cultivation facilities in the deal in both Nevada and Arizona.
Cresco also will gain access to another operating state – Utah – where Tryke currently has one of just eight cultivation licenses.
Cresco said it expects the deal to close in the first half of 2020, noting that it will likely be subject to U.S. Department of Justice scrutiny under Hart-Scott-Rodino antitrust measures.
It currently has another acquisition, Canadian-based distributor Origin House, also under such scrutiny.
Cresco said it expects to close that deal by October 31.
More details on the Tryke acquisition can be found here.
Cresco trades on the Canadian Securities Exchange under the ticker symbol CL.
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Written by Nick Thomas
Marijuana Business Daily