Replies to post #2928 on Cresco Labs Inc (CRLBF)

[$5.95akadawson-m]

What do you think it should have been?

[FUNMAN]

See red--->>>Ranger mis-read the acquisition:

Completely agree on this one. 52,000 sf of grow and six dispensaries for $80-million in cash and stock. Would appear to make the case for excessive valuations quite obvious. - Ranger

Key --->>> "add six additional retail dispensary permits in the state"

They are buying a tiny fraction of Trulieve's cultivation sq footage --->>>
"Approximately 52,000 sq. ft. of indoor grow/processing space"

They bought concrete--->>>Foundation for an additional 52,000 sq. ft. of indoor cultivation space

Only one dispensary is open--->>>One operational dispensary in Montgomeryville

They also bought all of the debt--->>>A second dispensary in Scranton currently under construction

...the Ability to open an additional four dispensaries throughout the state --->>> In a state where licenses mean something (unlike Florida), this is important.

But GTI is a good example that permits/licenses are great assets to have, but having the financial ability to open and supply the locations from their company owned cultivation facilities takes another big chuck of change. Cresco's $80M investment is only the tip of the iceberg.

That's why I stand by my statement that all MSO's are paying an insane cannabis acquisition premium.