CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs Inc., one of the largest vertically integrated multistate cannabis operators in the United States, has announced that it has closed its acquisition of 100 percent of the membership interests of Gloucester Street Capital, LLC, the parent entity of Valley Agriceuticals, LLC (Valley Ag) via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of this acquisition, Cresco Labs now holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. The New York market is projected to grow to $500 million by 2021.
“New York is one of the most influential consumer markets in the world and we expect the state to act as a cornerstone in Cresco Labs’ plan to continue building the most strategic and valuable geographic footprint in the U.S. cannabis industry,” said Charles Bachtell, CEO and co-founder of Cresco Labs. “Since recently receiving regulatory approval for this transaction, Valley Ag has opened two new dispensaries in Williamsburg, Brooklyn and Huntington, Long Island. As a result, Cresco Labs enters the New York market with four strategically located dispensaries. These assets position us well to immediately generate meaningful revenue from this market. As we fully implement the world-class branding, marketing and distribution expertise that has helped us to develop leading positions in some of the most attractive cannabis markets in the country, we expect to steadily increase our share of a market that is projected to grow to $500 million by 2022.”
“Cresco Labs has an incredible vision for the future of the cannabis industry, and they were the obvious choice to partner with based on their superior management team, focus on compliance and experience working across hyper-regulated industries,” said Gloucester Street Capital CEO Stephen Ashekian. “I believe their strategic decision making, commitment to social equity and priority for putting the patients first will make them a leader in the New York market.”
In addition to the new dispensaries in Williamsburg, Brooklyn and Huntington, Long Island, Cresco Labs also has operating dispensaries in Bardonia and New Hartford.
Currently a medical-use only market, New York has approximately 107,000 certified patients and 2,500 registered practitioners. The state’s medical cannabis program has 15 qualifying conditions including chronic pain, post-traumatic stress disorder (PTSD) and opioid replacement.