Cresco Labs (CSE: CL) (OTCQX: CRLBF) - Investor Dashboard

Summary

Financials (09/30/19)

Capital Structure (11/27/19)

Company Brief

Cresco Labs (CSE: CL) (OTCQX: CRLBF), based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis with operations in 11 states, the company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry.

Its unparalleled speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a well-defined brand strategy that is tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef-inspired edibles by James Beard Award-winning pastry chef Mindy Segal.

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Highlights

• Brands to address variant consumer groups: Remedi, Cresco, Reserve, Mindy’s, Mindy’s Kitchen, Wonder Wellness Co. High Supply, Good News, and dispensary brand Sunnyside
• Strong medical advisory board and R&D partnerships with leading institutions and universities
• More than 30 retail licenses and 18 production facilities; approximately 1.2 million square feet of cultivation
• More than 5,000 SKUs in production
• Operations in California, Nevada, Arizona, Utah, Illinois, Ohio, Pennsylvania, Michigan, New York, Massachusetts, and Maryland
• Branded products sold through company-owned dispensaries and through wholesale; products sold in more than 700 dispensaries across the country

Growth Strategy

• Targeting expansion in states like Florida, New Jersey, Virginia, and Connecticut
• Expanding into Michigan with planned cultivation and production facility; two dispensary applications pending
• Hope Heal Health acquisition to help the company serve growing adult-use market in Massachusetts
• Create licensing and/or distribution partnerships to expand Mindy Segal edible products into growing markets such as Colorado, Oregon, Washington, Oklahoma, New Mexico, and California
• CPG approach to building brands
• Marketing strategy driven by awareness and education, in-store experience, and outreach
• Formation of hemp and CBD subsidiary WellBeings
• Actively pursuing the acquisition of licenses and existing cannabis operations

Differentiators

• Cresco is one of a very small group of operators to successfully obtain cultivation licenses in more than one of the modern, limited license, merit-based application state programs
• Cresco’s laboratory gives it the ability to formulate and develop a variety of products based on traditional pharmaceutical delivery systems – pills, tinctures, topical salves, transdermal patches and edible forms with a variety of cannabinoid profiles
• One of the largest, vertically integrated multi-state operators
• One of 10 vertically integrated license holders in New York
• Holds two of seven licenses available in Chicago’s Central District and one of six available licenses in the Southeast District
• 630,000 square feet of potential canopy space in Illinois
• One of the largest wholesale distributors in California following the Origin House acquisition
• Social Equity and Education Development (SEED) initiative aims to make the cannabis space more inclusive

Michael S. Lavery
PiperJaffray

Vivien Azer
Cowen, Inc.