Cresco Labs Announces Expiration of HSR Act Waiting Period for the Proposed Acquisition of Cultivate

Rhea-AI Summary

Cresco Labs (OTCQX:CRLBF) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for its acquisition of Cultivate Licensing LLC and BL Real Estate LLC. The absence of a "second request" from the DOJ indicates regulatory clearance, moving the company closer to finalizing the deal, pending state approval expected in Q4 2021. Upon completion, Cresco Labs anticipates entering the top three in Massachusetts' cannabis market, enhancing its strategic position in states with significant revenue potential.

Positive

• Acquisition approval progresses as DOJ does not issue a second request.
• Cresco Labs will gain a top 3 market position in the $1B+ Massachusetts cannabis market.
• Strengthening footprint in strategic states enhances potential revenue growth.

Negative

• None.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, today announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”), as amended, in respect to Cresco Labs’ pending acquisition of Cultivate Licensing LLC and BL Real Estate LLC (collectively “Cultivate”)(the “Transaction”). The waiting period expired without the issuance of a so-called “second request” by the United States Department of Justice Antitrust Division (the “DOJ”). The Transaction remains subject to certain closing conditions, including approval from the Commonwealth of Massachusetts which is anticipated to be received in the fourth quarter of 2021.

“We look forward to completing the remaining steps required to close the Transaction and are excited to begin our work with the Cultivate team later this year,” said Charles Bachtell, CEO of Cresco Labs. “Upon closing, Cresco Labs will immediately vault to a top 3 share position in Massachusetts, the third $1B+ market where we’ve achieved this status. Once again, we will execute our playbook and demonstrate the growth and leverage that can be achieved by going deeper in strategic states.”

For additional highlights and details on the Transaction, please see the announcement press release and presentation provided on our Investor Relations website.

About Cresco Labs Inc.

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 (“CPG”) 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 national brands including Cresco, High Supply, Mindy's Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. 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. Learn more about Cresco Labs at www.crescolabs.com.

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 outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2020 filed on March 26, 2021, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs’ shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210503005337/en/

FAQ

What is the status of Cresco Labs' acquisition of Cultivate?

The waiting period for Cresco Labs' acquisition of Cultivate expired without a second request from the DOJ, indicating regulatory approval is on track.

When is the expected closing date for the acquisition?

The acquisition is anticipated to close in the fourth quarter of 2021, pending approval from the Commonwealth of Massachusetts.

How will the acquisition impact Cresco Labs' market position?

The acquisition will elevate Cresco Labs to a top three share position in Massachusetts, a significant market for cannabis.

What is the importance of this acquisition for Cresco Labs?

This acquisition is strategically important as it allows Cresco Labs to deepen its presence in a high-revenue market and capitalize on growth opportunities.