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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S. Cresco Labs Announces Closing of C$73.5 Million Underwritten Public Unit Offering
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NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S. Cresco Labs Announces Closing of C$73.5 Million Underwritten Public Unit Offering

CHICAGO–(BUSINESS WIRE)–Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CSE: CL) (OTCQX: CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, is pleased to announce the closing today of its previously announced public offering (the “Offering”). Pursuant to the Offering, the Company issued 7,350,000 units (the “Units”) at a price per Unit of C$10.00 (the “Offering Price”), for gross proceeds of C$73,500,000. The Offering was conducted by a syndicate of underwriters, led by Canaccord Genuity Corp., and including Beacon Securities Limited, Cormark Securities Inc., Eight Capital and GMP Securities L.P..

The Company also granted the underwriters an over-allotment option to purchase up to an additional 1,102,500 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional C$11,025,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be C$84,525,000.

Each Unit consists of one subordinate voting share of the Company and one half of one subordinate voting share ‎purchase warrant of the Company (each full warrant, a “Warrant”). Each Warrant ‎‎entitles the holder to acquire one subordinate voting ‎share of the Company at a price of C$12.50 per share, ‎subject to adjustment in ‎certain circumstances, for a period of 3 years following the closing of the Offering.

The Company has received approval from the Canadian Securities Exchange to list the Warrants issued pursuant to the Offering. The Warrants are expected to commence trading under the ticker symbol “CL.WT” on the date hereof.

The Company intends to use the proceeds from the Offering to fund business development and for working capital requirements and other general corporate purposes.

The Units were offered in all of the provinces except Quebec by way of a base shelf prospectus dated July 25, 2019 and a shelf prospectus supplement dated September 16, 2019 (together, the “Prospectus”).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

About Cresco Labs:

Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco’s national dispensary brand, is a wellness-focused retailer designed 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 has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.

Forward Looking Statements

Certain statements in this press release constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”. We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include, but are not limited to, the exercise of the over-allotment option and the receipt of the proceeds thereof, the use of proceeds from the Offering and construction of facilities. Cresco Labs does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, variations in market conditions; the underwriter’s discretion as to whether to exercise the over-allotment option and other risk factors described in the Prospectus and the Company’s other filings with the applicable Canadian securities regulators, which may be viewed at www.sedar.com. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Contacts

Media:
Jason Erkes, Cresco Labs Chief Communications Officer

press@crescolabs.com

Investors:
investors@crescolabs.com

For general Cresco Labs inquiries:
312-929-0993

info@crescolabs.com

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