Cresco Labs today announced a management services agreement with a Tier 3 Cultivation License in Kentucky. The agreement entitles Cresco Labs to manage and operate a cultivation facility with up to 25,000 square feet of canopy, establishing the company as one of only two operators of Kentucky's coveted Tier 3 cultivation licenses.
Launched on January 1, 2025, Kentucky’s medical cannabis program represents a significant milestone for the state. The program includes a maximum of 115,000 square feet of approved canopy space and 48 retail licenses.
Industry analysts forecast the market to generate more than $135 million in revenue by 2026, growing to more than $228 million by 2028, according to MJBiz Factbook 2024.
"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."
