Cresco Labs is expected to sell off $250 million-$500 million worth of marijuana cultivation and retail licenses largely to meet state license limits as part of its planned $2 billion acquisition of rival Columbia Care.
Company executives told analysts that Chicago-based multistate operator Cresco “will likely” divest assets in Florida, Illinois, Massachusetts, New York and Ohio because of overlapping operations with New York-headquartered Columbia Care in limited-license markets.
Investment analysts said it’s also possible Cresco would have to sell some cultivation operations in Maryland and Pennsylvania.
But the regulatory requirements in several states, including New York, are unclear, according to analysts.
The large-scale asset sale would open opportunities in several high-growth markets for other marijuana companies.