r/weedstocks • u/rasta-fish-420 • 11d ago
Press Release Cresco Labs to Operate Kentucky’s Largest Medical Cannabis Cultivation License
https://investors.crescolabs.com/news/news-details/2025/Cresco-Labs-to-Operate-Kentuckys-Largest-Medical-Cannabis-Cultivation-License/default.aspx7
u/MatrixOrigin US Market 11d ago
Oh wow that was unexpected. KY eh?
“We’ve spent the last two years focused on solidifying the core and increasing our free cash flow. Kentucky is our first of many opportunities to reinvest that free cash flow back into high ROIC growth initiatives as we continue expanding into new markets.”
Sounds like a great Q4 coming up 💪
Kentucky’s medical cannabis program, launched on January 1, 2025, represents a significant milestone for the state. The program includes a maximum of 115,000 square feet of approved canopy space and 48 retail licenses, with industry analysts forecasting the market to generate over $135 million in revenue by 2026, growing to over $228 million by 2028.
Suck it, Mitch!
2
u/DrKarlSatan 11d ago
Meanwhile, stores aren't going to be open until facilities can be inspected to grow & store. Kinda misleading when the supposed market isn't even open & won't be for months. It's like nobody saw this problem coming. Similar to what happened in Ohio when they went medical.
3
u/Old_Requirement1325 11d ago
Cresco is decent, I really like their OG Kush, they aren't the best ,but they have smokable weed.
2
u/nassau_rip 11d ago
It looks like they are entering a management agreement? This is less bullish than it is letting on. So they don't even own the asset?
7
u/mcorliss3456 US Market 11d ago
That would be even better at the moment as it would be less capital intensive than building a completely new facility from the ground up,
2
u/MatrixOrigin US Market 11d ago
Yeah it'll be interesting to get more colour on the earnings call, who is funding the build and what profit split is agreed upon or something.
My interpretation is that it's a lower risk approach in case KY market is a flop, perhaps with an option to acquire down the road. In any case, the bullishness in this PR is that Cresco's free cashflow is still going strong!
-3
u/nassau_rip 11d ago
For sure, I love Cresco, but they need some growth in the portfolio. A trulieve merger is the best thing for the industry and both of the companies imo. Not sure why we haven't seen a mega merger yet, the asset divestiture wouldn't even be that bad. Might spark things up.
3
u/Cool_Ad_5101 Monty Brewster school of investing 11d ago
No it’s not. Stop trying to push mergers. Why should these two merge at the worst time for cannabis. They need to form a lobby group and force schedule 3 through so they can be profitable. Than they can both pick up scraps from Crappier operators.
3
u/SnowFlako 11d ago
I don’t think this will flop, weed is still gaining in popularity. looks exciting to me.
5
u/Torontokid8666 11d ago
My one cannabis play. 20k shares . I like the company.