Illinois Passes Transformative Adult-Use Cannabis Legalization with Sales Starting in January, 2020
CHICAGO, May 31, 2019–(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, today provided comments on the legalization of adult-use cannabis in its home state of Illinois. Cresco Labs CEO & Co-Founder Charlie Bachtell served on the Cannabis Legalization Subcommittee of Illinois Governor JB Pritzker’s transition team as the sole representative for cannabis operators in the state.
“The legislation passed today legalizing adult-use cannabis in the state of Illinois beginning in 2020 represents a thoughtful expansion of access to cannabis in Illinois and we expect it will have a positive impact on both social justice issues and from a tax revenue perspective by expanding the employment and ownership opportunities for cannabis businesses in the state,” said Mr. Bachtell. “As the current market leader in the rapidly expanding medical-use cannabis program in the state, we look forward to also serving what will no doubt represent one of the largest adult-use cannabis customer bases in the U.S. The legalization of adult-use cannabis continues to be strongly supported by voters across the country and the legislation passed in Illinois represents a good model for other states to legalize cannabis by statute rather than developing a program only after a ballot initiative is passed.”
Cresco Labs fundamentally supports legalized and responsible access to cannabis, as we have seen proof of the resulting societal benefits of lowering crime rates and helping curb opioid addiction and fatalities. We’re very excited about the new opportunities adult-use cannabis will bring to Illinois and we’re also anticipating some very beneficial improvements to the existing medical program as well.
Cresco Labs CEO & Co-Founder Charlie Bachtell
Mr. Bachtell continued, “This legislation also includes important social equity provisions that are close to our collective heart at Cresco Labs. These provisions will enable a broader segment of our population to pursue employment opportunities in the growing cannabis industry. As the first company in the cannabis industry to introduce a comprehensive national social equity & education initiative (SEED), we are fully committed to supporting the social equity provisions within the current legislation. Our team has already taken the initiative to partner with community organizations to hold expungement events, created educational programs for college students on the fundamentals of the cannabis industry and launched a community impact incubator to assist with funding and support for people wanting to own businesses in this emerging industry.”
Illinois Adult-Use Legislation
The legislation passed by the state of Illinois legalizes cannabis for adults 21 years and older, beginning on January 1, 2020. It is forecasted that the Illinois adult-use market will be 10-20 times the size of the state’s medical program.
Illinois is currently the fifth most populous state in the U.S., with a population of nearly 13 million. Cresco Labs currently has a presence in 11 states including four of the five most populous states¹.
Impact on Cresco Labs in Illinois
Under Cresco Labs’ current medical-use license in Illinois, it will have the ability to open five additional retail dispensaries for the sale of adult-use cannabis, bringing its total number of dispensaries in the state to 10 and the total cultivation footprint to three facilities, the maximum any one company is permitted to have.
The market share leader in Illinois, Cresco currently distributes its suite of wholesale brands to every dispensary in Illinois:
- Cresco – an everyday cannabis brand with above-average quality
- remedi – products designed for the medically-minded patient, with forms similar to traditional pharmaceuticals
- Reserve – a premium cannabis line
- Mindy’s Artisanal Edibles – a line of culinary-backed, cannabis-infused edibles created by James Beard Award-winning chef Mindy Segal
- Mindy’s Kitchen – a line of fun, fruity confections
About Cresco Labs
Cresco Labs, 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 operating across the United States, the company focuses on entering highly regulated markets with outsized demand potential and strong regulatory structures. Its impressive 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 cutting-edge brand strategy spearheaded by several of the brightest minds in consumer marketing in the nation. Cresco’s products are 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. Learn more about Cresco Labs at www.crescolabs.com.
¹With pending acquisitions and regulatory approval