Cresco Labs Announces Proposed Offering of Subordinate Voting Shares

Rhea-AI Summary

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has announced an overnight marketed offering of subordinate voting shares across Canada (excluding Québec) and privately to qualified institutional buyers in the U.S. The final pricing and terms are yet to be determined, with an additional 15% available for agents to cover over-allotments. Proceeds from the offering will support organic and inorganic growth opportunities and general corporate purposes. The securities are not registered under U.S. laws, thus may not be sold in the U.S. without proper registration or exemption.

Positive

• Offering aims to raise capital for growth opportunities.
• Company's established reputation as a leading cannabis operator.

Negative

• No assurance of completion or terms of the offering.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it is commencing a best efforts overnight marketed offering (the "Offering") of subordinate voting shares (the "Offered Securities") of the Company.

The Offered Securities will be offered in each of the Provinces of Canada, other than Québec, pursuant to a prospectus supplement to the Company's base shelf prospectus dated July 25, 2019 (collectively, the "Prospectus") and in the United States on a private placement basis to "qualified institutional buyers" pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act").

The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The closing of the Offering will be subject to market and other customary conditions, including requirements of the Canadian Securities Exchange.

In addition, the Company intends to grant the agents a 30-day option to purchase up to an additional 15% of the Offered Securities pursuant to the proposed Offering on the same terms and conditions to cover over-allotments.

The Company intends to use the net proceeds of the Offering for organic and inorganic growth opportunities and general corporate purposes.

Copies of the Prospectus, following filing of the prospectus supplement, may be obtained on SEDAR at www.sedar.com and from ATB Capital Markets Inc., 410-585 8^th Ave SW, Calgary, Alberta, T2P 1G1. The Prospectus contains important detailed information about the Company and the proposed Offering. Prospective investors should read the Prospectus and the other documents the Company has filed on SEDAR at www.sedar.com before making an investment decision.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The subordinate voting shares have not been and will not be registered under the U.S. Securities Act or any state securities laws. Accordingly, the Offered Securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cresco Labs

Cresco Labs is one of the largest vertically integrated, multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprised of some of the most recognized and trusted brands including Cresco, Remedi, High Supply, Cresco Reserve, Good News, Wonder Wellness, FloraCal Farms and Mindy’s Chef Led Artisanal Edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry.

Forward Looking Statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outsid

FAQ

What is Cresco Labs' recent market offering for CL and CRLBF?

Cresco Labs has launched an overnight marketed offering of subordinate voting shares to raise capital for growth opportunities.

Will the subordinate voting shares be available in the U.S. market?

The shares are offered privately to qualified institutional buyers in the U.S. but are not registered under U.S. securities laws.

What are the goals for the proceeds from the Cresco Labs offering?

The proceeds will be used for organic and inorganic growth opportunities and general corporate purposes.

Is there a provision for over-allotments in the offering of CL and CRLBF shares?

Yes, Cresco Labs intends to grant agents a 30-day option to purchase up to 15% additional shares to cover over-allotments.

What are the risks associated with the Cresco Labs offering?

There is no guarantee that the offering will be completed or that terms will be favorable.