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July 1, 2020, 7:40 a.m. EDT

Cannabis company Cresco Labs closes $29 million sale-and-leaseback transaction on Massachusetts facility

Cannabis company Cresco Labs (OTC:CRLBF) (CNQ:CA:CL) said Wednesday it has closed a sale-and-leaseback transaction for its Massachusetts facility with Innovative Industrial Properties Inc. (IIP). Cresco will receive $29 million for the sale of the facility, with $21 million earmarked for tenant improvements. The facility is about 118,000 square feet of industrial space, including cultivation space, a processing plant and dispensary serving medical and adult-use cannabis. The company entered amendments to its leases with IIP last month for real estate in Michigan and Ohio for $17 million. Shares were not active premarket, but have fallen 40% in the year to date, while the Cannabis ETF (PSE:THCX) has fallen 24% and the S&P 500 (S&P:SPX) has fallen 4%.

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