Cresco Labs Announces Closing of Offering of Subordinate Voting Shares

Cresco Labs (CSE:CL) (OTCQX:CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the closing of its previously announced overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for total gross proceeds of approximately US$125 million.

The Offered Securities were offered in each of the Provinces of Canada, other than Qu├ębec, pursuant to a prospectus supplement dated January 19, 2021 to the Company’s base shelf prospectus dated July 25, 2019 (collectively, the “Prospectus”) and in the United States on a private placement basis to “qualified institutional buyers” pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act“).

The Company intends to use the net proceeds of the Offering for organic and inorganic growth opportunities and general corporate purposes.

ATB Capital Markets Inc. acted as sole bookrunner for the Offering and A.G.P./Alliance Global Partners acted as the sole U.S. sub-agent and financial advisor to the Company in connection with the Offering in the United States.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The subordinate voting shares have not been and will not be registered under the U.S. Securities Act or any state securities laws. Accordingly, the Offered Securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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