Chicago-based Cresco Labs will sell two cultivation and processing facilities in Illinois to Innovative Industrial Properties, a real estate investment trust company (REIT), for $46.3 million as the multistate operator prepares for a “significant increase in demand” when recreational marijuana sales become legal in the state Jan. 1.
The facilities, which will continue to be operated by Cresco under a lease arrangement, are in Joliet and Kankakee and total about 100,000 square feet.
Some of the proceeds from the sale will be used to expand cultivation and retail facilities in preparation for adult-use marijuana when it becomes legal, Cresco said.
The company also will use some of the proceeds to prepare for increased demand in medical marijuana as the state’s program expands.
More details on this transaction can be found here.
Cresco trades on the Canadian Securities Exchange under the ticker symbol CL.
San Diego-based Innovative Industrial Properties, which focuses on the acquisition of warehouses for the cannabis industry, trades on the New York Stock Exchange under the ticker symbol IIPR.
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Written by Nick Thomas
Marijuana Business Daily