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

Summary

Financials (06/30/19)

Capital Structure (08/29/19)

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 nine 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.

Cresco is set to grow significantly through major acquisitons. It has a definitive agreement to acquire Origin House. Once the transaction is complete, the company will have a leading position in California. Cresco has also signed an agreement to purchase vertically integrated seed-to-sale company Tryke Companies, which will expand its market presence in Arizona and Nevada.

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Highlights

• Brands to address variant consumer groups: Remedi, Cresco, Reserve, Mindy’s, Mindy’s Kitchen, and dispensary brand Sunnyside
• Strong medical advisory board and R&D partnerships with leading institutions and universities
• More than 20 retail licenses and 23 production facilities; approximately 1.2 million square feet of cultivation
• More than 5,000 SKUs in production
• Current operations in Illinois, Nevada, Ohio, Arizona, Pennsylvania and California; processing operations in Maryland; pending regulatory approval in New York, Massachusetts, Michigan, and New Jersey
• Branded products sold through company-owned dispensaries and through wholesale

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
• Create licensing and/or distribution partnerships to expand Mindy Segal edible products into growing markets such as Colorado, Oregon, Washington, Oklahoma, and New Mexico
• 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

Michael S. Lavery
PiperJaffray

Vivien Azer
Cowen, Inc.