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


➔ Cresco Labs
CSE Ticker: CL
OTCQX Ticker: CRLBF
Market Focus: United States
Classification: Vertically Integrated
Country: United States
Employees: >2300 as of December 2020
Established: 2013
CEO: Charles Bachtell

Summary

Fiscal Year-End: December
Auditor: Marcum LLP
Exchanges: CSE, OTCQX
Sector:  Healthcare
States: 10
Headquarters: Chicago, IL

Financials (03/31/21)

Cash on hand: $255.5million
Fixed Investment: $250.0 million
Shareholders’ Equity: $710.4 million
Revenues – Last Quarter: $178.4 million
Gross Margin : 48.8%
EPS : -$0.12

Capital Structure (05/28/21)

Last Financing: 9.9 million shares at C$16.00
Shares: 378.3 million
Warrants:  5.7 million
Options:  24.5 million
Diluted Shares: 409.7 million

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. The company’s growth strategy is focused on brands and distribution.

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Cresco is set to grow significantly after having completed several acquisitions. Following the close of the Origin House acquisition, Cresco is now one of the largest wholesale distributors in California. Origin House’s indoor cultivation and production facilities will help rapidly grow access to Cresco branded products in the state.

Cresco has expanded into the Florida market with the acquisition of Bluma Wellness. With the deal closed, Cresco has a strong presence in seven of the 10 most populous states with cannabis programs. Cresco will also create a leading position in Massachusetts with the pending acquisition of vertically integrated operator Cultivate.


Highlights

  • One of the largest, vertically integrated multi-state operators
  • Brands to address variant consumer groups: Remedi, Cresco, Reserve, Mindy’s, Wonder Wellness Co., High Supply, Good News, and dispensary brand Sunnyside
  • Strong medical advisory board and R&D partnerships with leading institutions and universities
  • 44 retail licenses, 32 operating dispensaries and 18 production facilities
  • More than 5,000 SKUs in production
  • Operations in Illinois, Pennsylvania, Ohio, Arizona, Maryland, California, Massachusetts, New York, Michigan and Florida
  • Branded products sold through company-owned dispensaries and through wholesale; products sold in more than 1.100 dispensaries across the country

Growth Strategy

  • Leveraging success in the Illinois, Pennsylvania and California markets to expand into states like Florida, Michigan, New York and Massachusetts
  • Hope Heal Health acquisition to help the company serve the growing adult-use market in Massachusetts
  • Create licensing and/or distribution partnerships to expand Mindy Segal edible products
  • Growth fueled by brands and distribution
  • Developing 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
  • 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

  • Obtained cultivation licenses in more than one of the modern, limited license, merit-based application state programs
  • 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 and 10 stores in Illinois; 88,000 square feet of cultivation in Pennsylvania
  • Holds the maximum number of retail licenses (five) in Ohio following the acquisition of four Verdant Creations’ dispensaries
  • 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

Building Distinct Brands That Scale


Institutional Analyst Coverage

Kenric Tyghe
ATB Capital Markets

Jesse Pytlak
Cormark Securities Inc.

Glenn Mattson
Ladenburg Thalmann

Russell Stanley
Beacon Securities

Vivien Azer
Cowen, Inc.

Matthew McGinley
Needham

Scott Fortune
ROTH Capital Partners

Derek Dley
Canaccord Genuity

Matthew Pallotta
Echelon Partners

Jason Zandberg
PI Financial

Andrew Partheniou
Stifel

Pablo Zuanic
Cantor Fitzgerald

Graeme Kreindler
Eight Capital

Michael S. Lavery
Piper Jaffray


Curated Stories & News


Visit Cresco Labs, Inc.
at www.crescolabs.com.

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