Business

Cresco Labs Closes $50 Million Purchase of Nine Pennsylvania Dispensaries

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Cresco Labs Inc. announced on September 2, 2026, that it has closed its acquisition of 100% of the outstanding equity interests in PharmaCann Penn, LLC for aggregate consideration of US$50 million, adding nine operational retail medical marijuana dispensaries in Pennsylvania to its footprint.

The company’s announcement describes Pennsylvania as the second-largest medical marijuana market in the United States, citing Hoodie Analytics data showing the state generated more than US$1.1 billion in annual sales last year.

The US$50 million purchase price was satisfied through a combination of cash and a seller note. The transaction was completed on a cash-free, debt-free basis with a mutually agreed upon normalized target level of working capital, according to the company.

Transaction Terms and Stated Market Position

Cresco stated that following the closing, it will be the top retailer providing medical marijuana to patients across Pennsylvania. The company also described itself as the state’s leading wholesaler and said the combined retail and wholesale positions allow it to leverage scale and brand strength across the market. These characterizations are the company’s own and are attributed to its release.

The company said the transaction is expected to be immediately accretive to revenue, margins, and cash flow. That projection is a forward-looking statement by the company and has not been independently verified.

“We are focused on deploying capital into opportunities that strengthen our competitive position and generate attractive long-term returns,” said Charlie Bachtell, CEO of Cresco Labs. “This transaction expands our retail footprint in a core market through a highly strategic acquisition while creating additional opportunities to leverage our existing infrastructure.”

Bachtell identified Pennsylvania as one of the company’s core markets, stating that scale and vertical integration create durable competitive advantages there. He said pairing additional retail locations with the company’s scaled cultivation operations and leading wholesale business reinforces its position as what he called the consolidator of choice in the markets that matter most.

Prior Pennsylvania Integration and Financing

The acquisition follows an earlier Pennsylvania retail expansion. In its second-quarter 2026 financial results, released on August 6, 2026, Cresco stated that it had completed its first quarter operating nine acquired dispensaries in Pennsylvania and had improved their gross profit dollars by 11% before rebranding a single store. That operating claim is the company’s own.

Cresco reported second-quarter 2026 revenue of $173 million, gross profit of $87 million, net income of $15 million, and Adjusted EBITDA of $40 million. The company said revenue rose 15% sequentially and Adjusted EBITDA rose 20% sequentially; Adjusted EBITDA is a non-GAAP measure as defined in that release. As of June 30, 2026, the company reported $67 million of cash, cash equivalents, and restricted cash, a senior secured term loan net of discount and issuance costs of $311 million, and a mortgage loan net of discount and issuance costs of $19 million.

On June 8, 2026, Cresco announced the closing of a credit agreement with Needham Bank, a Massachusetts-based commercial bank, providing a US$50 million revolving credit facility. That release states that borrowings under the facility are available to fund growth initiatives, acquisitions and general corporate purposes, and that the facility bears interest at a fixed annual rate of 7.99% and matures in August 2030.

Securities and Corporate Disclosures

The acquisition news release constitutes a designated news release for the purposes of the company’s prospectus supplement dated January 29, 2026, to its short form base shelf prospectus dated October 3, 2025, according to the announcement.

Cresco Labs shares trade on the Canadian Securities Exchange under the symbol CL, on the OTCQX under CRLBF, and on the Frankfurt Stock Exchange under 6CQ.

The company operates dispensaries nationally under the Sunnyside brand. Its branded product portfolio includes Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, which it distributes through cultivation, production, and wholesale operations.

The acquired dispensaries are operational retail medical marijuana locations. The announcement did not disclose the specific cities or addresses of the nine Pennsylvania stores, nor did it break down the individual cash and seller note components of the purchase price. No terms regarding employee transitions or licensing transfer details were included in the release.

Cresco’s forward-looking statements reference risks discussed under “Risk Factors” in the company’s Annual Information Form for the year ended December 31, 2025, filed on SEDAR+ and EDGAR. Mark Stortz is listed as the company’s interim chief financial officer in the acquisition release.

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Marcus Lin is an AI-generated analyst at MyCannabis.com, covering cannabis companies, industry strategy, and market structure across regulated jurisdictions. His work focuses on how licensed producers, processors, and ancillary businesses operate within evolving regulatory environments—and how business decisions shape long-term market viability.

With a business-focused and analytical perspective, Marcus examines company strategy, consolidation trends, supply chain dynamics, and capital deployment across the cannabis sector. He places particular emphasis on execution, regulatory alignment, and the structural factors that determine whether companies can scale sustainably in legal markets.

Articles authored by Marcus Lin are AI-generated and reviewed by MyCannabis.com’s editorial team to ensure accuracy, context, and responsible coverage of cannabis industry developments in regulated markets.