Cresco Labs Inc (OTCMKTS: CRLBF) Bulls In Control

Cresco Labs Inc (OTCMKTS: CRLBF) is edging higher ahead of the much-awaited acquisition of Origin House in a deal valued at about $825 million. Investor sentiments in the stock have also inched higher in response to the company strengthening its presence in key cannabis markets in the U.S.

Cresco Labs Price Analysis

The aggressive expansion drive has seen the company set toes in Illinois in pursuit of opportunities for growth. The company has also set sights on Michigan after securing a license that allows it to engage in cannabis cultivation and processing.The multi-state cannabis operator has also secured licenses for adult use cannabis cultivation and processing in Massachusetts. The stock has continued to edge higher as a flurry of positive developments continues to strengthen the stock’s sentiments in the market. CRLBF Daily ChartCresco Labs is already up but more than 60% for the year and showing signs of climbing the cannabis ladder further. The immediate resistance standing in the way of the steep uptrend is the $13 mark. After a minor correction lower, the stock is likely to power through the resistance level, as the upward momentum continues to gather pace.

What Does Cresco Labs Do?

Cresco Labs is engaged in the cultivation, production, and sale of cannabis products in the U.S. The company boasts of a diverse product line made up of cannabis oil in a capsule, oral and sublingual solutions as well as dry flower and vaporizer forms of cannabis.

Origin House Acquisition

Cresco Labs started the second quarter on a roll, announcing plans to acquire Origin House, a trading name for CannaRoyalty Corp. The acquisition is a big coup for Cresco Labs as it stands to gain access to a company with a large distribution network in California.In addition, the company stands to strengthen its product line with a large portfolio of brands as Origin House is engaged in the distribution of more than 150 branded products. Origin house should expand Cresco Lab's footprint on the international scene following the acquisition of Canadian retailer 180 smoke.The combined company will have operations in 11 states ideal for diversifying revenue streams. The combined company will operate 23 facilities and boast of more than 1.5 million square feet of cannabis cultivation.

"Following the closing of this acquisition, Cresco brands will be in over 725 dispensaries across the country, giving us the largest and most strategic distribution footprint of any cannabis company in the United States," explained CEO Chief Executive Charlie Bachtell.

Expansion Drive

The acquisition comes at a time when Cresco Labs is increasingly expanding its footprint into other states, in pursuit of opportunities for growth. The vertically integrated multistate cannabis operator is pre-qualified for a cannabis cultivation and processing license in Michigan.The prequalification license paves the way for the company to enter the Michigan cannabis market as well as license its production facilities. The company intends to set up a cultivation and processing facility in a former factory in Marshall with a capacity of over 100,000 square feet.Florida is another state that the company has set sights on, as it seeks to take its production facilities to 15, supported by 21 dispensaries.In Illinois, the company has secured approval for licensed cannabis dispensaries MedMar Rockford and MedMar Lakeview and PDI Medical. The approvals bring to five the company’s dispensary footprint in the state.

“We have already achieved the highest market share of any operator in Illinois, and our prospects for accelerated growth are promising with the recent implementation of the Alternatives to Opioids program that began on February 1st,” added Mr. Bachtell.

In Massachusetts, the company’s strategic partner Hope Heal Health cultivation facility and dispensary have received provisional approvals for adult use cannabis cultivation, manufacturing, and retail. With only 15 approved adult use cannabis dispensaries in the state, the company remains well positioned to benefit from strong demand for adult use cannabis.

Bottom Line

Cresco Labs is in a phase of robust growth, which explains why it is flying higher. The acquisition of Origin House underscores the company’s push for growth. Expansion into new states as well as the inking of strategic partnerships affirms the company’s push in the burgeoning sector.With the stock currently trading in a steep uptrend, pullbacks should provide exciting entry positions as Cresco Labs remains well positioned to continue surging.We will be updating our subscribers as soon as we know more. For the latest updates on CRLBF, sign up below!Disclosure: We have no position in CRLBF and have not been compensated for this article.Photo by Jahoo Clouseau from Pexels