Cresco Labs (OTC:CRLB.F) has put the finishing touches on its latest construction project. The company announced Thursday that it has completed the expansion of its complex in Brookville, Pennsylvania. The facility, in which the company can both grow marijuana and manufacture related products, now has 88,000 square feet of cultivation space -- up from its original 22,000 square feet.
On the manufacturing side, Cresco has installed a set of new extraction booths and integrated safety systems. The marijuana company said this allows it to expand its butane extraction capacity by 300%, and its ethanol extraction by 90%. With this, it can process enough raw material to produce not only its full range of brands, but also brands it plans to launch soon.
The cultivation and manufacturing capabilities in the Brookville complex are meant to supply the entirety of the Pennsylvania market.
Cresco Labs currently operates three of its CY+ dispensaries in the state -- one in Pittsburgh, one in Butler, and one in New Kensington. All sell medical cannabis to licensed patients; typically for a Mid-Atlantic state, Pennsylvania has legalized cannabis for medical use, but not for recreational use.
"Pennsylvania continues to be one of the most attractive and highly coveted markets in the country," the company said in the press release trumpeting the expansion. "Today's announcement marks a strategic milestone toward building our leadership in this high-growth market. This expansion enables us to more efficiently cater to patients across the Keystone State and increase our operating leverage.
Investors generally agreed, judging by the market's reaction on Thursday. Cresco's shares rose 0.8%, more or less in line with the major equity indexes.