08:02 AM EDT, 07/21/2025 (MT Newswires) -- Cresco Labs ( CRLBF ) on Monday said it plans to sell its California operations as a part of a strategic restructuring to strengthen its balance sheet and increase cash flow.

The company said it is in "active discussions" with prospective buyers interested in acquiring its California assets, including cultivation, manufacturing, and select distribution operations, and expects to finalize the deal within the next several quarters, subject to regulatory approvals.

Cresco Labs ( CRLBF ) will retain full ownership of its premium FloraCal brand and continue producing and marketing the brand across key U.S. markets.

Shares of the company closed up 4% to $0.78 on Friday on the Canadian Securities Exchange.