Cresco Labs Archives - Green Market Report

William SumnerDecember 10, 2018

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 SumnerDecember 3, 2018

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 BorchardtDecember 3, 2018

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.

Anne-Marie FischerOctober 12, 2018

Earlier this week Cresco Labs LLC announced plans for a reverse takeover of Vancouver-based Randsburg International Gold Corp [NEX: RGZ.H], a move that will allow Cresco to go public and seek approval to list its common shares on the Canadian Securities Exchange (“CSE”).

The proposed takeover will be structured as an amalgamation, arrangement, takeover bid, share purchase, or similar form of transaction. The transaction will require Randsburg to change its name to Cresco Labs Inc, consolidate its outstanding common shares, replace all directors and officers of the company with those nominated by Cresco, and create a new class of non-participating super voting shares that will be issued to certain principals of Cresco.

“The Canadian market has been very supportive of the U.S.-based cannabis companies and we look forward to having expanded access to capital that will help us accelerate our strategic growth plan,” said Cresco’s CEO Charles Bachtell.

Cresco is currently operating in six states as a cultivator, processor and distributor. They are responsible for bringing some of the most recognized cannabis brands to market, including Cresco (elevated everyday cannabis), Mindy’s Edibles, RESERVE, and remedy.

Earlier this month, Cresco announced that they recently closed a funding round that resulted in $100 million in capital, that will be used to expand to the 31 states that offer some form of legalized cannabis program. “This capital raise demonstrates our commitment to growing our national footprint and establishing dominant brand presence in key markets across the country,” Bachtell said of the recent fundraising success.

Cresco is one of the largest cannabis companies in the United States, with operations in Illinois, Ohio, Pennsylvania, Nevada, California, and Arizona. Cresco prides itself not only on its operations and brands, but also the education programs that aim to provide customers and physicians with information on cannabis in a straightforward and intuitive way.

Further details on the reverse takeover of Randsburg by Cresco will be included in a subsequent listing statement to be prepared and filed with the Canadian Securities Exchange and in subsequent news releases.

Debra BorchardtOctober 5, 2018

Multi-state U.S. cannabis company Cresco Labs announced closed its oversubscribed Series D funding round for $100 million making it the second largest private funding round in U.S. cannabis history. Cresco will be able to use these funds to continue expansion into other states and distribute their existing suite of medical cannabis and adult-use cannabis products

“This capital raise demonstrates our commitment to growing our national footprint and establishing dominant brand presence in key markets across the country,” CEO Charlie Bachtell said.

Chicago-based Cresco is located in six states. 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.

Cresco Labs purchased an ownership interest in an existing Nevada operation which holds one cultivation, one processing, and one dispensary license located in Las Vegas. It has an ownership interest in an existing Arizona operation which holds a vertically integrated license with cultivation, processing, and one dispensary location near Phoenix. Cresco has partnered with one of the largest indoor commercial farming networks in Central Coast California.

“The financial commitments we secured for this round represent both how appealing the cannabis industry has become to investors and how impressed they are with the direction Cresco is headed,” Bachtell added.