US (CA): Cresco Labs exit California

Cresco Labs Inc. has announced that it is selling its California operations as part of what it calls a "strategic restructuring"

The company is in active discussions with prospective buyers interested in acquiring its California assets, including cultivation, manufacturing and select distribution operations. It expects to finalize the transaction within the next several quarters, subject to customary closing conditions and regulatory approvals. Cresco Labs will retain full ownership of its premium FloraCal brand and continue to produce and market the brand across key U.S. markets.

"Capital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return," Cresco Labs CEO and co-founder Charlie Bachtell said. "While California is the largest cannabis market in the world, the structural challenges—ranging from fragmented retail to price compression and the illicit market—combined with our lack of scaled footprint in the state, make it extremely difficult to generate sustainable profitability. Exiting California allows us to reallocate capital and resources to our core markets and build out new markets where we see clear pathways for growth and shareholder value."