Chicago company set to become nation’s largest weed firm

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River North-based Cresco Labs is primed to become the nation’s largest cannabis firm after announcing plans Thursday to acquire Columbia Care in a $2 billion deal.

Cresco currently has operations in 10 states, including the maximum 10 dispensaries and three cultivation centers in. The blockbuster deal will expand Cresco’s footprint in those states and extend its reach into seven more states and Washington, D.C. Columbia is headquartered in Manhattan.

The grand opening of Cresco Labs' flagship Sunnyside recreational marijuana store, a block south of Wrigley Field, Monday, Nov. 15, 2021. Cresco’s bid to take over Columbia Care marks the latest high-profile acquisition affecting Illinois’ cannabis market, which has seen a wave of consolidation since the drug was fully legalized at the start of 2020. That trend has continued as state regulators have faced legal hurdles in issuing new licenses to vastly expand the statewide industry.

Columbia Care holds two of those permits, as well as a cultivation license. Given that Cresco already has the maximum number of permits to grow and sell weed, spokesman Jason Erkes said the company will have to sell some off to comply with the law and finalize the deal.

 

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