Cresco Labs Inc. has closed its acquisition of 100% of the membership interests of Gloucester Street Capital LLC, the parent entity of Valley Agriceuticals LLC via a merger between Gloucester and a subsidiary of Cresco Labs.

As a result of this acquisition, Chicago-based Cresco Labs now holds one of the 10 vertically integrated cannabis business licenses granted in the state of New York by the New York State Department of Health. Each license gives the operator the right to operate one cultivation facility and four dispensaries in New York. The New York market is projected to grow to $500 million by 2022, according to Arcview/BDS Analytics.

“New York is one of the most influential consumer markets in the world and we expect the state to act as a cornerstone in Cresco Labs’ plan to continue building the most strategic and valuable geographic footprint in the U.S. cannabis industry,” Cresco Labs CEO and Co-Founder Charles Bachtell said in a statement. “Since recently receiving regulatory approval for this transaction, Valley Ag has opened two new dispensaries in Williamsburg, Brooklyn and Huntington, Long Island.

“As a result, Cresco Labs enters the New York market with four strategically located dispensaries. These assets position us well to immediately generate meaningful revenue from this market. As we fully implement the world-class branding, marketing and distribution expertise that has helped us to develop leading positions in some of the most attractive cannabis markets in the country, we expect to steadily increase our share of a market that is projected to grow to $500 million by 2022.”