Is Expanding Into Florida a Good Move for Cresco Labs?

On Jan. 14, Cresco Labs (OTC: CRLBF) announced that it would be expanding into Florida through the acquisition of Bluma Wellness. The all-share transaction will cost Cresco approximately $213 million worth of its stock, and in return Cresco will instantly gain seven dispensaries with the opportunity to open eight more. Large multistate operators Curaleaf and Trulieve Cannabis (OTC: TCNNF) already have strong positions in Florida, which won't make it easy for Cresco to gain significant market share there.