Mr. Jason Erkes reports
CRESCO LABS INC. ESTABLISHES AT-THE-MARKET OFFERING
Cresco Labs Inc. has entered into an equity distribution agreement with Canaccord Genuity Corp., pursuant to which the company may, from time to time, sell up to $55-million of subordinate voting shares in the capital of the company. The company intends to use the net proceeds of the at-the-market (ATM) program, if any, principally for general corporate purposes (including financing continuing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions.
Since the subordinate voting shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the company's management and in accordance with the terms of the equity distribution agreement. To date, no subordinate voting shares have been distributed by the company pursuant to the equity distribution agreement.
Sales of subordinate voting shares, if any, under the ATM program are anticipated to be made in transactions that are deemed to be at-the-market distributions as defined in National Instrument 44-102 (Shelf Distributions), as sales made directly on the Canadian Securities Exchange or any other recognized Canadian marketplace within the meaning of NI 21-101 (Marketplace Operation). The ATM program is being made pursuant to a prospectus supplement dated Dec. 3, 2019, to the company's short form base shelf prospectus dated July 25, 2019, filed with the securities regulatory authorities in each of the provinces and territories of Canada.
The prospectus supplement, together with the related base shelf prospectus, is available at the company's profile on SEDAR.
About Cresco Labs Inc.
Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States. Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods approach to cannabis, Cresco's house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands.
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