Cresco Labs Inc (CNSX: CL) (OTCMKTS: CRLBF) (FRA: 6CQ) says it will soon benefit from one of only two large-scale medical cannabis cultivation licenses issued by Kentucky regulators. The state officially legalized medicinal usage of the plant on Jan. 1 following approval of Senate Bill 47 in 2023.
Cresco will be responsible for managing a 25,000-square-foot growing operation. The multi-state operator has not specified who owns the cultivation complex and who or what actually holds the license.
“I look forward to showing Kentucky residents why Cresco Labs’ portfolio is the most popular choice in both medical markets like Pennsylvania and adult use markets like Illinois,” chief executive, Charlie Bachtell, said in a press release on the subject.
Cresco Labs now has one of only two Tier 3 authorizations for mass production. Tier IV licenses, which will permit up to 50,000 square feet of cultivation, are not being issued in the initial licensing rounds.
“Kentucky’s a very exciting market,” Cresco Labs representative, Jason Erkes, said in a recent interview. “It’s got a great regulatory structure, and we’re very excited to be able to service the patients once things launch.”
Kentucky Governor Andy Beshear recently held a press conference to celebrate issuing his state’s first medical marijuana distribution licenses.
He said in January that he hoped medical cannabis would line shelves in the state by the end of the quarter, but this goal has not become a reality yet and is still weeks or months away from coming to fruition.
Read more: LEEF Brands secures California cultivation licenses; boosts extraction capacity
Read more: Kentucky governor celebrates handing out first medical marijuana licenses
Cresco Labs reports significant financial improvements
For the first three quarters of 2024, the cannabis company reported a 66 per cent year-over-year increase in operating cash flow at US$103 million.
The cultivator’s cash, cash equivalents and restricted cash balance also rose by US$41 million from the previous quarter at the end of Q3. This can be attributed to the robust operating cash flow, limited expenditures and strategic money management overall.
Cresco’s Q4 results will be posted on Mar. 12.
In addition to cultivation endeavours like the newly announced management agreement in Kentucky, Cresco Labs has a major retail footprint, with over 72 stores in throughout Illinois, Pennsylvania and Massachusetts.
It opened up its first in Butler, Pennsylvania in 2018.
rowan@mugglehead.com
