Expanding medical marijuana firm Cresco Labs buys dispensaries in Wrigleyville, Rockford

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Medical marijuana company Cresco Labs signed a deal to acquire two dispensaries, one in the Lakeview neighborhood and another in Rockford, weeks after the Chicago-based company went public in Canada.

The dispensaries, MedMar Lakeview and MedMar Rockford, will be Cresco's fourth and fifth in the state, maxing out the number a company can own in Illinois. Terms of the deal were not disclosed.

"Not only do they become a part of Cresco Labs in Illinois, but they're also part of the fabric of the Cresco Labs company," said Charlie Bachtell, CEO and co-founder of Cresco. "We'll learn a lot from them, and they'll have a big influence on how we move forward, even with operations in other states."

The acquisitions come just weeks after Cresco debuted on the Canadian Securities Exchange. The company raised $87 million through its listing, bringing its total capital raised this year to $205 million, Bachtell said. Third-quarter revenue was $12.2 million, more than four times what it was in the same period last year.

Illinois medical marijuana companies are making big moves on the state and national levels as the stigma around weed begins to fall away. Besides going public in Canada, Illinois weed companies have raised hundreds of millions of dollars to fund expansions and consolidated through a number of deals, one topping $680 million. Interest in the drug is growing, especially as Gov.-elect J.B. Pritzker has called for legalizing recreational marijuana.

Last week, Bachtell was named to the cannabis legalization subcommittee of Pritzker's transition team. That work includes developing recommendations for safely legalizing and decriminalizing the drug, reviewing sentences of people incarcerated for marijuana offenses and making sure it's not just white men running the industry.

There are 55 licensed medical licensed dispensaries in Illinois, which has more than 49,000 qualified patients.

Cresco co-owns two dispensaries in Buffalo Grove and Champaign and in October announced that it would acquire its first wholly owned dispensary, FloraMedex in Elmwood Park. The Chicago-based firm also operates three cultivation centers in Illinois, including one in Joliet that recently doubled its growing capacity.

Cresco employs about 500 people, roughly 200 of whom are in Illinois. The company also has licenses to operate in Pennsylvania and Ohio and has acquired dispensary and cultivation operations in Arizona, Nevada and California.

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