Cresco Labs Archives - Green Market Report

Debra BorchardtDebra BorchardtMay 17, 2019
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3min950

Origin House, formerly known as CannaRoyalty (CSE: OH) (OTCQX: ORHOF)  announced preliminary unaudited revenue of approximately C$11 million for the first quarter ending March 31, 2019. No profit or loss numbers were revealed.

The company also noted that April was off to a good start with approximately C$6.5 million in unaudited revenue. The wholly-owned distribution division, Continuum contributed approximately $4.8 million of that amount in April.

“As we outlined on our Q4 call less than a month ago, momentum is building in the California market for all legal players and for Origin House specifically. Q1 and the month of April were record revenue periods for the Company, and also record periods for the number of top California cannabis brands that our team successfully onboarded,” said Marc Lustig, Chairman and CEO of Origin House. “If 2018 was a year of building for Origin House, 2019 is rapidly progressing toward an inflection point where the platform we have built begins to demonstrate its true financial power, with brands signed early in the year, rolling-out through our network and a robust pipeline of brand opportunities ahead of us.”

The approximate gross margin for the first quarter was 15% and the company said it expects gross margin to continue to trend upwards from the first quarter to the second.

The company announced on May 3, that it had obtained an interim order from the Ontario Superior Court of Justice in which Cresco Labs Inc. will acquire all of the issued and outstanding shares of Origin House. Receipt of the interim order authorizes Origin House to hold its special meeting of shareholders on June 11, 2019.

Lustig added, “I very much look forward to working alongside the team at Cresco Labs Inc. to leverage our complementary footprints and management skillsets to build a dominant North American cannabis consumer brands company.”

Both Cresco Labs and Origin House will release their earnings on May 29.


Debra BorchardtDebra BorchardtApril 29, 2019

4min2060

Canada-based Origin House (once known as CannaRoyalty Corp.) (CSE: OH) (OTCQX: ORHOF) reported its fourth quarter and year-end results ending in December 2018 in Canadian dollars. The fourth quarter saw revenues of $7.9 million an increase of 638% over last year’s $1.1 million for the same time period. The net loss for the quarter was $6.1 million.

The adjusted EBITDA loss was $1.9 million versus the adjusted EBIDTA profit of $7.9 million for last year’s fourth quarter. Gross margin, excluding fair value items, was $0.2 million as compared $0.1 million, an increase of 87%; Operating expenses were $15.4 million as compared to $4.6 million, an increase of 233%.

Full Year Results

For 2018, the company delivered revenues of $18.7 million an increase of 507% over 2017’s $3.1 million. The net loss for the year was $9 million. The pro-forma revenues were $37.4 million and were $48.7 million with the acquisition of 180 Smoke on February 19, 2019.  The adjusted EBITDA profit of $3.4 million versus the 2017 adjusted EBIDTA profit of $4.1 million. Gross margin, excluding fair value items, was $1.5 million as compared $0.9 million, an increase of 67%.

Cresco Labs Acquisition

On April 1, 2019, Origin House agreed to be acquired by Cresco Labs for $1.1 billion, creating a North American cannabis powerhouse. Last year, Origin House acquired Kaya Manufacturing, Alta Supply, RVR Distribution, FloraCal Farms, and 180 Smoke in 2018 to create a footprint today comprised of 6 licenses, 8 facilities, and over 350 employees in California and Canada, with pro-forma revenue of $37.4 million. Pro-forma revenue reached $48.7 million with the acquisition of 180 Smoke in Q1 2019.

“During 2018, Origin House delivered demonstrable value creation for shareholders through organic execution, judicious acquisitions and the crystallization of value embedded in non-core assets,” said Marc Lustig, CEO of Origin House. “Throughout the year, we continued to aggressively build our platform of brands and distribution capability focused in California, and this culminated in reaching a definitive agreement to be acquired by Cresco Labs for $1.1 billion on April 1, 2019. This partnership is just the beginning of our journey together. The combined entity will be a U.S. distribution powerhouse, with a growing portfolio of over 50 brands on the shelves of over 725 dispensaries across 11 states.”

The company listed the following summary of key balance sheet totals as of December 31, 2018:

  • Cash was $69.2 million as compared to $4.5 million an increase of 1430%;
  • Total assets of $230.7 million as compared to $46.1 million, an increase of 400%;
  • Current assets of $86.0 million as compared to $7.9 million, an increase of 982%;
  • Current liabilities of $26.2 million as compared to $2.1 million, an increase of 1126%; and
  • Long-term debt financing of $16.0 million as compared to $2.3 million, an increase of 610%.

“We spent the past 12 months successfully implementing our strategy to build a platform of premium brands by creating the top distribution and brand support platform in California,” said Afzal Hasan, President and General Counsel of Origin House. “Our team executed and successfully integrated five acquisitions during the year while adding several key experiential brands to our Brand Accelerator and distribution platform. In March 2019, with the integration of our two distribution companies under the Continuum banner, Origin House now controls one of the top state-wide distribution networks in California. With 2018’s regulatory growing pains behind us and a recent commitment on the part of the government to redouble its efforts to quash the still-thriving illegal cannabis market in the state, Origin House is off to a running start in early 2019.”

 

 


William SumnerWilliam SumnerApril 24, 2019
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5min1950

It’s time for your Daily Hit of cannabis financial news for April 24, 2019.

On The Site

Cresco Labs

Chicago-based Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) released its unaudited financial results for the fourth quarter and full year ending December 31, 2018. The fourth quarter revenue was $17.0 million, an increase of 411% over last year for the same time period and up 33% sequentially. The company trimmed its net losses to $2.6 million versus the net loss of $3.0 million for 2017 fourth quarter. The quarter’s pro forma revenue was $22.5 million.

Federal Legalization – Then What?

It is fascinating to step back and observe how the mindset of many in the cannabis industry seems to work. Let’s think through a couple of scenarios and have a peek at the landscape in a post-legalization world. Let’s begin with the following

After the Drama, Where Is Aphria Headed Now?

Even in a space with as much excitement as marijuana stocks, Aphria (NYSE:APHA) stood out for having as much drama as a cable TV show. After all the excitement, what’s next for APHA stock? And have the company’s recent moves made it investable again, or is Aphria only appropriate for the most steel-nerved traders?

In Other News

Grown Rogue

Grown Rogue International Inc. (CSE:GRIN) (OTC: NVSIF), a vertically integrated multi-state cannabis operator, announced that it has entered into a binding letter of agreement to acquire Decibel Farms, Inc., an organic cannabis producer and processor. Under the terms of the transaction, the acquisition will be structured as a tax-free merger and shareholders of Decibel will receive $2 million. Decibel owners Shawn Bishop and Buddy Wilson will join Grown Rouge as Vice President of Manufacturing and President of Sales, respectively.

Aphria

Aphria Inc. (TSX:APHA)(NYSE:APHA) announced that it has closed a $300 million private placement offering to institutional investors. The initial investors exercised their option to purchase an additional $50 million in notes, making the deal worth $350 million. The notes are senior unsecured obligations of Aphria with an interest rate 5.25% per year, payable semiannually on June 1 and December 1 of each year, beginning on December 1, 2019. The notes will mature on June 1, 2024.

TerrAscend

TerrAscend Corp. (CSE:TER)(OTCQX: TRSSF) today released its financial results for the fourth quarter ending on December 31, 2019. Revenue for the quarter was $5 million, up from $1.8 million in the previous quarter. Net loss was $11.7 million or $0.13 per share. The company has $21.7 million in cash and cash equivalents. “We are pleased with our performance in the fourth quarter and have laid the groundwork for success in 2019,” said Michael Nashat, CEO of TerrAscend, in a statement. “We are experiencing strong sales momentum in Canada and are making substantial progress towards becoming a leading US multi-state operator.”


Debra BorchardtDebra BorchardtApril 24, 2019
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6min3611

Chicago-based Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) released its unaudited financial results for the fourth quarter and full year ending December 31, 2018. The fourth quarter revenue was $17.0 million, an increase of 411% over last year for the same time period and up 33% sequentially.

The company trimmed its net losses to $2.6 million versus the net loss of $3.0 million for 2017 fourth quarter. The quarter’s pro forma revenue was $22.5 million.

Full Year Results

Cresco Labs delivered full-year revenue of $43.3 million, which increased 294% from 2017 and the full year pro forma revenue was $75.6 million. The company was profitable for the full year as it delivered a net income of $3.9 million, compared to a net loss of $4.0 million in the prior year. Cresco Labs is now operational in seven U.S. states, with binding transactions pending in New York, Massachusetts, and Florida. On March 25, 2019, it received approval to enter into the State of Michigan

“We completed 2018 with another quarter of positive pre-tax income that reflected continued strong execution across all areas of our operations,” said Charles Bachtell, Co-founder, and CEO of Cresco Labs. “Building on our momentum from 2018, we have already made incredible progress this year in building Cresco Labs’ leadership position in the cannabis industry. The definitive agreement signed with Origin House earlier this month is a transformational deal for Cresco that creates a cannabis industry powerhouse with the premier distribution platform in the United States serving the greatest number of dispensaries in the country. Combined with our recent entrance into the Florida market, Cresco has built the largest and most strategic footprint of any cannabis company in the United States.”

Success In The Capital Markets

Cresco Labs is a relatively young company that has accomplished a great deal very quickly. It only began trading its common shares on the Canadian Securities Exchange on December 3, 2018 under the symbol “CL” following the successful completion of the Company’s reverse takeover of Randsburg International Gold Corp. On March 6, 2019, the company was approved to list on the OTCQX market and its common shares are currently trading under the symbol “CRLBF.” Cresco successfully raised $205 million in growth capital through three capital raises in 2018.

As of December 31, 2018, Cresco had total assets of $318.4 million, including cash and cash equivalents of $131.3 million. In addition to that, it had a working capital position of $172.7 million with zero debt on the balance sheet.

Company Updates

The company gave the following operational updates in its statement:

  • Illinois
    • Construction is underway to expand the Company’s cultivation facility in Lincoln, IL to 170,000 square feet with expected completion during the second quarter of 2019.
    • Launched an Illinois Opioid Alternative Pilot Program in the Company’s FloraMedex dispensary, which opens up access to medical cannabis across the state and removes certain registration barriers previously imposed on medical marijuana patients.
  • Pennsylvania
    • The Company opened its third dispensary (New Kensington) under its first license in the state.
    • The Company became the first dispensary in the Pittsburgh market to offer online ordering.
    • The Company is currently in the process of expanding its Brookville cultivation facility by approximately 85,000 square feet.
  • Ohio
    • On January 16, 2019, the Company made the first legal sale of medical marijuana in Ohio, the second consecutive state in which Cresco Labs was first to market (following similar success in Pennsylvania).
  • Massachusetts
    • Hope Heal Health, one of the companies with which Cresco entered into a definitive merger agreement, opened a medical cannabis dispensary in Fall River, Bristol County, Massachusetts. This acquisition is pending regulatory approval.
  • Arizona
    • The Company will be launching a wholesale distribution of more than 50 products under the Cresco brand during the second quarter of 2019.
  • California
    • The Company’s new processing facility in Mendota, CA is scheduled to open during the second quarter of 2019. This will enable the Company to distribute its full suite of brands across the state.
  • Nevada
    • Mindy’s Edibles are now carried in 62 out of 67 dispensaries in Nevada and have three of the top 10 selling edibles in the state, including the top-selling edible, according to Headset Inc., a cannabis data intelligence company.

William SumnerWilliam SumnerApril 11, 2019
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4min1720

It’s time for your Daily Hit of cannabis financial news for April 11, 2019

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) received approval from the Illinois Department of Financial and Professional Regulation (IDFPR) for Cresco’s previously announced acquisitions of licensed medical cannabis dispensaries MedMar Rockford and MedMar Lakeview, located in the popular Wrigleyville neighborhood of Chicago.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.

In Other News

KushCo Holdings

KushCo Holdings (OTCQB: KSHB) announced the release of their financial results for the second fiscal quarter of 2019, which ended on February 28, 2019. Quarter-over-quarter, the company’s revenue rose by 39% to $35.2 million. The net loss for the quarter was $8.9 million. Adjusted EBITDA was $5.2 million. As of February 28, the company had $17.9 million in cash. “Our focus remains the build out of a scalable, sustainable business, as we cement our presence as the primary supply chain partner to the cannabis, CBD and related industries,” said KushCo CEO Nick Kovacevich. “As a result of a strong first half of the year, including the signing of a number of long-term supply arrangements-in-principle with several new large, well-known customers, we are raising our revenue guidance from between $­110 million and $120 million for fiscal year 2019 to between $140 million and $150 million.”

White Label Liquid

White Label Liquid, Inc. (OTC: WLAB) today released their financial results for the 2018 fiscal year. Revenue for the year was $7,006,110. The company experienced a net loss of $149, 285. “We had a great year, but it’s only just the beginning,” said White Label Liquid CEO Yaron Elkayam in a statement. “These numbers reflect not just the hard work of our partners all along our supply chain; they are also a reflection of the growing strength of the CBD industry.”

Eve & Co Incorporated

Eve & Co Incorporated (TSX-V: EVE) has entered into an engagement letter with Haywood Securities Inc. Haywood Securities has agreed to purchase 20 million special warrants of the company, at a price of $0.50 per warrant, for a total of $10 million. The offering is expected to close on or around May 10, 2019.


Debra BorchardtDebra BorchardtApril 11, 2019
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3min9020

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) received approval from the Illinois Department of Financial and Professional Regulation (IDFPR) for Cresco’s previously announced acquisitions of licensed medical cannabis dispensaries MedMar Rockford and MedMar Lakeview, located in the popular Wrigleyville neighborhood of Chicago.

According to Arcview Research, Illinois’ medical market is projected to have 126,566 legal consumers in 2022 and they are expected to spend approximately $400.5 million in 2022.

The company said that the IDFPR also approved Cresco’s acquisition of PDI Medical, a medical cannabis dispensary located in Buffalo Grove, Illinois, which was purchased by the Company in November 2018. The MedMar dispensaries are Cresco Labs’ fourth and fifth dispensary acquisitions in Illinois bringing the Company’s footprint to five dispensaries in its home state.

“Illinois is at the forefront of our nation’s evolution of the cannabis industry, and with these three dispensary approvals, Cresco has reached the maximum level of dispensaries any single company can own and operate in our home state,” said CEO & Co-Founder Charlie Bachtell. “We have already achieved the highest market share of any operator in Illinois and our prospects for accelerated growth are promising with the recent implementation of the Alternatives to Opioids program that began on February 1st. Illinois has opened access for patients by eliminating the three-month waiting period as well as requirements for fingerprinting and background checks for all patients with any qualifying condition. With a doctor’s approval, a patient can now receive a medical-use cannabis card in just one day.”

In addition to its five dispensaries in Illinois, Cresco operates three cultivation and processing facilities across the state.

Origin House Acquisition

Cresco announced recently that it was going to acquire Origin House in a deal valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looks to be the largest public company acquisition in the history of the U.S. cannabis industry.

The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.


Debra BorchardtDebra BorchardtApril 1, 2019
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7min3950

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  is acquiring CannaRoyalty Corp. also known as Origin House (CSE: OH) (OTCQX: ORHOF) in a deal valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looks to be the largest public company acquisition in the history of the U.S. cannabis industry.

The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.

“The acquisition of Origin House is another example of our focused and disciplined approach to creating a meaningful presence in key cannabis markets through excellence in brand development and distribution,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “It establishes Cresco Labs as the leading multi-state operator with one of the largest distribution platforms in California. Having a similar priority on consumers and consumer brands with the expertise of executives from the largest wine and liquor distribution company in the United States, the team at Origin House has established the premier cannabis distribution company in the largest cannabis market in the world. It’s an incredible platform for Cresco in California and the distribution infrastructure will provide a valuable framework to leverage as we scale our platforms in other states.”

Origin House

Origin House is a growing cannabis brands and distribution company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The company’s foundation is in California where it delivers over 130 branded cannabis products from 50+ brands to the majority of licensed dispensaries. Origin House’s brand development platform is operated out of five licensed facilities located across California and provides distribution, manufacturing, cultivation and marketing services for its brand partners. Origin House is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.

“From an Origin House perspective, this transaction is directly aligned with our strategy to build a leading portfolio of cannabis brands in California and to rapidly and accretively take those brands to the rest of the U.S. market, as well as the Canadian market,” said Marc Lustig, Chairman, and CEO of Origin House. “By partnering with one of the largest and most innovative U.S. multi-state operators in existence today, Origin House will supercharge its growth and be in a position to offer its brand partners access to 10 additional states, with licenses and supporting infrastructure already in place.  This Transaction is not the first opportunity we have reviewed, but it has received the unanimous support of our board and large shareholders because we are confident that together we will be in a position to truly change the face of the global cannabis industry while continuing to create significant value for the shareholders of both companies.”

Terms Of The Deal

Cresco Labs will acquire all of the issued and outstanding Origin House Shares, with each holder of Origin House common shares receiving 0.8428 Cresco Labs Shares for each Origin House Share (and each holder of an Origin House proportionate voting share receiving 84.28 Cresco Labs Shares for each proportionate voting share held), which implies a price per Origin House Share of C$12.68 (on an as-converted basis), representing a total consideration of approximately C$1.1 billion (on a fully-diluted).

Origin House shareholders will hold approximately 20% of the issued and outstanding Cresco Labs shares on a pro forma, fully-diluted and as converted basis, enabling Origin House shareholders the opportunity to participate in the expected value created through the deal. The company said there would be an immediate premium to Origin House shareholders of approximately 26% over the 30-day volume weighted average price.

Upon completion of the acquisition, as well as the receipt of licensure in Michigan and the closing of the company’s pending acquisition in Florida, Cresco Labs will have operations in 11 states, 23 facilities, more than 1.5 million square feet of cultivation, and licenses to operate up to 51 retail dispensaries. Cresco Labs brands will be sold in over 725 dispensaries across the United States.

“We are excited to welcome the Origin House team to the Cresco family,” said Cresco Labs President and Co-founder Joe Caltabiano. “With the addition of Origin House and its vast distribution network in California, we will have access to incredibly valuable real-time market data and insight into consumer buying patterns that will inform our product development strategies and reinforce our brand strength. In addition to their brand building and distribution expertise, Origin House has a very experienced M&A, corporate development and capital markets team that will be extremely valuable as we continue to expand and add scale through additional transactions. With respect to the capital markets impact, with the equity issued through this transaction, we expect to have substantially more shares in our float, which we believe will provide ample liquidity for larger institutional investors looking to deploy capital into the cannabis space. We expect that our larger scale and improved liquidity following this acquisition will positively impact our ability to attract a larger universe of potential investors and reduce our cost of capital in the future.”

 

 


William SumnerWilliam SumnerDecember 10, 2018
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2min5800

Cresco Labs, Inc. (CSE: CL), a multi-state cannabis operator, today announced its financial results and operational highlights for the third quarter, which ended on September 30, 2018.

Revenue for the quarter increased to $12.2 million, representing a quarter-over-quarter increase of 51% and a year-over-year increase of 335%. Cresco’s net income nearly doubled from $2.0 million in the previous quarter to $3.9 million.

Gross profits, before gains from biological assets, increased to $5.4 million, compared to $3.5 million in the previous quarter. Adjusted EBITDA for the quarter rose from $2.1 million in the previous quarter to $5.9 million.

At the end of the quarter, the company had approximately $149.5 million in assets, which included $93.9 million in cash and cash equivalents. Cresco has a working capital position of roughly $105.3 million and long-term liabilities of about $2 million.

On December 17, 2018, at 5 PM Eastern Time, Cresco will hold a conference call to discuss its financial results for the quarter. A replay of the call will be made available on the company’s website following the call.

“As one of the early cannabis companies to establish a national geographic footprint with substantial population reach and production capacity, Cresco is leading the way in normalizing and professionalizing our industry,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “As a multi-state operator, we have repeatedly proven our ability to get access to markets, get operational, get product to markets, and get disproportionate market share.”

Following the closing of the quarter, Cresco entered the Massachusetts cannabis market with the acquisition of Hope Heal Health, Inc. Most recently the company went public on the Canadian Securities Exchange and began trading under the stock ticker “CSL” on December 3, 2018. Cresco is also in the process of receiving FINRA approval to trade on the OTC Market. The company also increased its liquidity by closing a $100 million Series F funding raise and another $85 million funded through institutional investors.


William SumnerWilliam SumnerDecember 3, 2018
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6min5620

It’s time for your Daily Hit of cannabis financial news for December 3, 2018

On the Site

Cresco Labs

Chicago-based Cresco Labs is set to begin trading on the Canadian Securities Exchange on Monday using the symbol CL. Cresco is headed by Chief Executive Officer Charles Bachtell who was also a founding member of the Illinois Cannabis Bar Association and the Medical Cannabis Alliance of Illinois. Cresco hits the market with operations in six states (Illinois, Ohio, Pennsylvania, Nevada, California, and Arizona). The company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry.

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (OTCMKTS: HTHHF) today announced its financial results for the third quarter ending on September 30, 2018. The financial results pertain the operations of the Harvest Enterprises Group of Companies, which acquired Harvest Health & Recreation (then known as RockBridge Resources Inc.) in a reverse takeover last month.

Meet The Owner Of A Humboldt County Organic Farm

Green Market Report recently visited Humboldt County and during our time out there, we met Dave Sandomeno. He’s the owner/farmer of Sunrise Mountain Farm. Along with his wife Lorelle, they run an organic cannabis farm that supplies product to leading companies like Papa & Barkley. Check out the 8-foot tall cannabis plants!

In Other News

Cronos Group

The cannabis industry was abuzz with news this morning as news broke that the maker of Marlboro Cigarettes, Altria Group, (NYSE: MO) was in talks to acquire the Canadian Licensed Producer Cronos Group (NASDAQ: CRON). News of the talks caused Cronos’ stock price to jump roughly 10% from $9.25 at the start of trading to $10.17 at the close of the market. At present, details of the deal at not forthcoming and there is no certainty that Cronos will even agree to a deal. The talks are expected to last for several weeks.

Aphria

Aphria Inc. (NYSE: APHA) took a major hit today as stock prices for the company plummeted in the wake of a report where shorth seller Gabriel Grego called the company worthless. Grego, who is the founder of Quintessential Capital Management, worked with Hindenburg Research, a forensic analysis firm. In the report, Grego wrote that the company had redirect company funds towards investments held by company insiders. Both Grego and Hindenburg Research are shorting Aphria. In response, Aphria issued a statement calling the report “malicious and self-serving,” and told investors to “exercise caution in relying on the misrepresentations and distortions contained in the report and recognize that, by their own admission, Hindenburg Research “…stands to realize significant gains in the event that the price of any stock covered herein declines.””

OG DNA Genetics

The cannabis brand OG DNA Genetics announced today that it has successfully closed its first two equity financings, raising $35 million from a group of institutional and strategic investors. Serving as the placement agent for the financings was KES 7 Capital Inc. The company intends to use the proceeds to manufacture, distribute, and sell a variety of cannabis products under the DNA brand label. “I’m excited with our ability to now bridge the gap between real financial markets and real cannabis companies,” said Don Morris, co-founder of DNA. “We have a strong network of great operators and brands across many verticals and applications in the cannabis space, which combined with this capital raise enables us to further develop and refine them, while always staying true to our core strengths, which have positioned us extremely well for our next phase of growth.”


Debra BorchardtDebra BorchardtDecember 3, 2018
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4min6040

Chicago-based Cresco Labs is set to begin trading on the Canadian Securities Exchange on Monday using the symbol CL. Cresco is headed by Chief Executive Officer Charles Bachtell who was also a founding member of the Illinois Cannabis Bar Association and the Medical Cannabis Alliance of Illinois.

Cresco hits the market with operations in six states (Illinois, Ohio, Pennsylvania, Nevada, California, and Arizona). The company focuses on entering markets with outsized demand potential, significant supply constraints and high barriers to entry. The company prides itself on its speed-to-market. It boasts that it can go from license to market in seven months.

In October, Cresco Labs closed on its oversubscribed Series D funding round securing $100 million (US), making it the second largest private funding round in U.S. cannabis history.

In November Cresco celebrated its pilot harvest from its seven-acre production site located in the Central Coast of California. The company said that it was partnered with a well-established horticultural producer in the region and had implemented the highest standard in medical cannabis production to cultivate high-quality, third-party certified cannabis products for the California adult-use market. Including the Central Coast cultivation production site, Cresco Labs will operate two cultivation/processing, one extraction and one distribution facility in California.

Its portfolio of brands includes Cresco, Remedi, Reserve and Mindy’s Edibles, an infused edible line with James Beard Award-winning Chef Mindy Segal. The products have been developed in order to address various consumer demands within the cannabis industry.

The flagship brand Cresco is available in Illinois and Pennsylvania, with Ohio, California, and Nevada on deck. Each product falls into one of three proprietary categories: Rise, Refresh, Rest, named and is color-coded to help the consumer identify the desired effects of the relevant strain’s cannabinoid profile. Mindy’s is currently available in Illinois and Nevada with Ohio and California to follow.

Reserve is a premium cannabis product that is sold in Illinois and Pennsylvania. Ohio, California, and Nevada are the next planned markets. Remedi is the medical cannabis product with an emphasis on CBD products. It is currently sold in Illinois and Pennsylvania with Ohio and Nevada to follow.

Cresco was founded after winning three merit-based cultivation licenses in the Illinois market. It has 110,000 square feet of cultivation in three facilities in the state and can yield enough product to service over 50 dispensaries. The company has since garnered more vertically-integrated licenses in Pennsylvania and Ohio. It has a facility located an hour from Pittsburgh and the first sale of medical cannabis occurred in their dispensary. In June, Cresco received a license to operate vertically-integrated dispensaries in the “Buckeye” state.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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