CHICAGO – January 14, 2021 — PRESS RELEASE — Cresco Labs, one of the largest vertically integrated, multistate cannabis operators in the United States, and Bluma Wellness Inc., a vertically integrated operator in Florida, announced today they have entered into a definitive agreement pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Bluma in an all-share transaction that values Bluma at an equity value of US$213 million.
“Our strategy at Cresco Labs is to build the most strategic geographic footprint possible and achieve material market positions in each of our states. With Florida, we will have a meaningful presence in all seven of the 10 most populated states in the country with cannabis programs – an incredibly strategic and valuable footprint by any definition. We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth. Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets,” said Charles Bachtell, CEO of Cresco Labs. “In 2020, we demonstrated the growth and leverage that can be created by focusing only on the most strategic markets, executing high-quality cultivation at scale, and marrying it with a targeted, consumer-focused model of high-volume retail. In 2021, it’s rinse and repeat. We’re using the same playbook to go deeper in strategic states, including Florida – we look forward to bringing our Cresco Labs brands and our Sunnyside stores to the Sunshine State!”
“Bluma’s high-quality cultivation operations, scaled delivery platform and strategic retail investments combined with Cresco Labs’ track record of execution and capital allocation creates the best path forward to accelerate growth for our business in Florida,” said Brady Cobb, CEO of Bluma. “Our vision for Bluma and One Plant Florida has always been to cultivate remarkable experiences through exceptional cannabis. Our management team took the responsibility to seriously assess potential partners and we’re thrilled to be joining an organization that aligns operationally and shares our passion for creating quality cannabis products.”
Bluma Highlights:Bluma Wellness, under its operating subsidiary “One Plant Florida,” has seven strategically located dispensaries with eight more locations under legal control and planned to open.One Plant stores rank second highest in per-store sales of smokable flower in Florida.One Plant stores derive 15% of revenue from home delivery (among the highest in Florida).54,000 square feet of cultivation space (with planned expansion of cultivation capacity, processing lab and edibles kitchen).One Plant dispensaries act as delivery hubs supporting the fleet of 15 delivery vehicles offering 24-48 hour statewide service.
Florida Market Highlights:Third most populous state in the U.S. with 21.7 million people.Second largest growth of state residents in the U.S. in 20201.Over 450,000 registered patients in