Chicago-based Cresco Labs Inc. today (March 11) announced it received a management services agreement with a Tier 3 Cultivation License in Kentucky, allowing it to operate a cannabis cultivation facility with up to 25,000 square feet of canopy. It is only the second such license issued in the state.
Cresco offers cannabis in all forms nationally under brands such as High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, and sells under its Sunnyside brand dispensaries.
“The Cultivation License allows for the construction of a state-of-the-art cultivation facility with up to 25,000 square feet of canopy, enabling us to deliver the quality and scale we are known for,” said Charlie Bachtell, CEO of Cresco Labs. “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.”
Launched on Jan. 1, 2025, Kentucky’s medical cannabis program allows for a maximum of 115,000 square feet of approved canopy space and 48 retail licenses. Industry analysts predict the state’s market will generate $135 million in revenue by 2026 and grow to $228 million by 2028.
