Cresco Labs: Boosting Its Presence On The West Coast

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About: Cresco Labs Inc. (CRLBF)
by: Cornerstone Investments
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Cornerstone Investments
Long/short equity, long-term horizon, cannabis industry
Summary

Cresco Labs announced a $283 million purchase of private cannabis operator Tryke, which operates in Arizona and Nevada.

Tryke's crown jewel is its Reef Dispensary located near the Las Vegas Strip - one of the only two cannabis retailers in that vicinity.

We think the deal is a great for Cresco given 1) attractive purchase price, 2) strong profitability, and 3) good fit and minimal overlap.

Cresco Labs (OTCQX:CRLBF) just announced a big acquisition when it bought Tryke Companies for $283 million. The deal expanded Cresco Labs into two of the most valuable cannabis markets in the U.S. and