Cresco Labs CRLBF, +2.98% CL, +3.41% said Tuesday it has terminated the acquisition of VidaCann Ltd. announced in March in a deal that would have cost it $120 million. Chicago-based Cresco Labs said the decision was made to conserve cash as it works to accelerate top and bottom-line growth. The company has also signed an agreement for a sale-and-leaseback of two properties in Ohio and Michigan that will allow it to raise $38 million in non-dilutive financing. "The team and operations at VidaCann are phenomenal, but with a focus on managing our cost of capital, and insuring the most efficient and highest return on invested capital, the ability to deploy resources to other, existing, Cresco markets that are widely considered some of the top markets in the US, like Illinois, Pennsylvania, California and Nevada, has to take priority," Chief Executive and co-Founder Charlie Bachtell said in a statement. The company is the latest to drop a planned acquisition as the cannabis sector has been hurt by the slower-than-expected development of the legal market in Canada and the U.S. U.S.-listed shares were not active premarket, but have fallen 15% in 2019, while the ETFMG Alternative Harvest ETF MJ, +0.48% has fallen 31% and the S&P 500 SPX, +1.59% has gained 25%.