Cannabis MSO Cresco prices Canadian share offering to raise $125 million

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Chicago-based multistate cannabis operator Cresco Labs priced an overnight marketed share offering, designed to raise roughly $125 million, at 16 Canadian dollars ($12.56) per share.

The offering of Cresco’s Canadian subordinate voting shares was announced Thursday.

The entire offering will “be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors,” Cresco said in a Friday morning news release.

The offering, expected to close around Jan. 21, includes a 30-day option to purchase up to 15% more shares.

Cresco shares trade as CL on the Canadian Securities Exchange.

Proceeds from the offering will be used “for organic and inorganic growth opportunities and general corporate purposes.”

“In alignment with our stated strategy, this financing will allow us to make targeted investments within our strategic footprint to go deeper in each state and accelerate our growth,” Cresco CEO Charlie Bachtell said in the release.

“In 2020, we built leading market positions in both Illinois and Pennsylvania, and now it’s time to use the same playbook to achieve market leadership across the remainder of our platform.”

Earlier this week, Cresco announced a deal to acquire Florida medical marijuana cultivator and dispensary operator Bluma Wellness.

In December, Cresco boosted the size of a senior secured loan to the maximum of $200 million.