|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||4.0897 - 4.4600|
|52 Week Range||4.0897 - 14.3900|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||11.35|
Illinoians are still celebrating the legalization of recreational marijuana sales across the state, which kicked off on New Year’s Day. Cresco Labs CEO & Founder Charlie Bachtell joins Yahoo Finance's Zack Guzman and Julia La Roche, along with "The Morning Brew" Business Editor Kinsey Grant, to discuss.
Cresco Labs Announces the Opening of Four Sunnyside* Dispensaries in New York and Launches Delivery Program in the New Hartford Area
LGBTQ advocate Candace Gingrich is among a group of advocates and industry officials who will discuss the role the cannabis community should play in social equity at the Benzinga Cannabis Capital Conference starting Monday in Miami Beach. Gingrich, the vice president of business development in Florida at Revolution Global and author of the 1996 book “The Accidental Activist,” also leads LGBTQ outreach for the company. Gingrich worked for more than two decades for The Human Rights Campaign.
Cresco Labs Continues to Redefine Cannabis Industry, Names Former Molson Coors Marketing Executive Greg Butler Chief Commercial Officer
CRESCO LABS CLOSES ACQUISITION OF HOPE HEAL HEALTH, INC. AND LAUNCHES FIRST DAY OF ADULT-USE CANNABIS SALES
Formerly known as “Seed to Sale,” the National Cannabis Industry Association’s NorthEast Cannabis Business Conference is coming to Boston, Massachusetts February 19-20. Benzinga readers can register here ...
Cresco Labs Inc. said Thursday it has entered a senior secured term loan agreement for an initial sum of $100 million with an option to borrow up to $200 million. The Chicago-based cannabis company expects to complete an initial drawdown by Jan. 30 and will use the funds to expand operations in Illinois, where cannabis became legal for adult use this year. Cannabis companies have been struggling to access capital in recent months after a steep selloff in the sector last year and many have been forced into dilutive financings or have resorted to sale-and-leaseback arrangements using their own real estate. "Through this deal, we have diversified the Company's funding sources, improved our cost of capital in a non-dilutive manner and given ourselves flexibility in a dynamic capital environment," Chief Executive Charlie Bachtell said in a statement. Loans made on the initial closing date will bear interest at a rate of about 12.7% per year for 18-month loans and about 13.2% for 24-month loans, payable quarterly in arrears, said the statement. Cresco's U.S.-listed shares were not yet active premarket, but have fallen 2.9% in the last 12 months, while the ETFMG Alternative Harvest ETF has fallen 40% and the S&P 500 has gained 26%.
Toronto, Ontario--(Newsfile Corp. - January 20, 2020) - Capital 10X interviews Cresco Labs (CSE: CL) CEO Charlie Bachtell after an exciting series of developments for the MSO.Cannot view this video? Visit:https://capital10x.com/cresco-labs-cl-ceo-illinois-origin-house-florida/They discuss the newly legalized Illinois market, including the supply challenges facing the different players in the space. As Mr. Bachtell details, Cresco Labs is well situated with a large cultivation footprint and distribution network.He also elaborates on the Origin House acquisition ...
The biggest news in the cannabis sector for January is the starting of recreational cannabis sales in Illinois. Sales started on New Year’s Day and several companies are already reporting closing stores due to a lack of enough inventory.Outside of eventual U.S. federal approval, the cannabis companies can benefit greatly from the legalization of cannabis sales at the state levels whether for medical or recreational purposes. Illinois and Michigan recently added recreational use to existing medical cannabis approvals while Florida remains the biggest state with the potential to add recreational sales to a thriving medical cannabis business.Over the initial days of January, Illinois sold over $11 million worth of legal weed from 55 dispensaries. Illinois has the potential of reaching $4 billion in annual sales and building on an existing minimal $250 million medical cannabis market.Analysts have forecasted U.S. cannabis sales topping $16 billion in 2020 while the total global sales may not even reach $20 billion following the weak recreational sales in Canada and the slow rollout of Cannabis 2.0 products. The Illinois market has the potential of matching the current international market of only a few billion dollars highlighting the massive opportunity for U.S. multi-state operators (MSOs).MSOs already in the Illinois market have first mover advantage in this market of 13 million residents and 117 million tourists annually. In addition, the companies with the most cultivation capacity have the potential to thrive while others lack inventory.We’ve delved into these three U.S. cannabis MSOs with a strong market position in Illinois that will benefit from the opening up of the adult-use market. According to TipRanks' Stock Comparison tool, all three currently have a Strong Buy consensus rating and over 70% upside potential.Cresco Labs (CRLBF)Cresco Labs is the proclaimed leader in the Illinois market with 25% market shares. The company has another key opportunity to further grow market share due to three cultivation licenses in comparison to the two licenses listed by other players.The company has the ability to expand to 630,000 square feet of product capacity to become the largest cultivator in the crucial state home to Chicago. Cresco Labs has the ability to supply the other retail dispensaries unlike most competitors.Cresco Labs served 3,145 people on New Year’s Day at five retail dispensaries for an average customer count 629 per store. In total, the company sold 9,258 products with an average ticket price of an incredible $135.The company is in the process of opening five more stores. In total, Cresco Labs obtains over 65% of current revenues from wholesale sales so the company isn’t as focused on pure store openings as most other companies in the industry.Despite the huge benefit of the large Illinois market opening up to recreational cannabis, the stock trades near the yearly lows at about $6.The cannabis producer looks like a very compelling investing opportunity, as TipRanks analytics showcasing the stock as a Strong Buy. With an average price target of $12.23, analysts are predicting massive upside potential of over 100%. In total, Cresco stock has received 6 "buy" ratings with no "holds" or "sells" in the last three months. (See Cresco's price targets and analyst ratings on TipRanks)Curaleaf (CURLF)Curaleaf sits as the burgeoning giant in the cannabis sector and Illinois plays a huge role in their growth path. The planned acquisition of Grassroots offers the company prime operations in Illinois to add to an already large revenue base.The company reported Q3 pro-forma revenues of $129 million. Analysts have revenues surging to $199 million in Q2, $236 million in Q3 and $290 million next Q4. The growth is based highly on the acquisitions of Select and Grassroots combined with the addition of substantial revenues from recreational cannabis in Illinois.The Grassroots deal is expected to close during Q1 shortly after the state opened up for recreational cannabis use. A prime driver of 2020 revenue estimates in a range of $1.0 billion and $1.2 billion and analyst goals for $1.5 billion in revenues by 2021 is the growth opportunity in Illinois.With the closing of the Acres Cannabis deal in Nevada, Curaleaf has 52 existing dispensaries and access to over 130 locations. Grassroots has four stores open in the state that were serving the medical cannabis market and the company is allowed to open four more stores including two in the key city of Chicago. A total of 8 stores in the big Illinois market is a huge positive for the stock.The U.S. MSO stock continues to bounce around $6 as the benefits of the Illinois market are too reliant on the closing of the Grassroots deal providing the stores in Illinois. The Acres deal closing helps provide some confidence in closing the Select and Grassroots deals, but the market is very hesitant on sector stocks until these mergers are closed and integration begins.Curaleaf has a fully diluted market value of $2.8 billion based on 464 million shares outstanding. The deals push the diluted share count to 668 million shares including the 41 million contingent shares for Select. The stock has the potential for a total market value approaching $4.0 billion or only 2.5x 2021 sales estimates.Wall Street is on the same page. This ‘Strong Buy’ received 7 "buy" ratings vs only one "hold" over the last three months. Not to mention its $10.43 average price target suggests 71% upside potential from current levels. (Discover how the overall stock-price forecast for Curaleaf breaks down here)Green Thumb Industries (GTBIF)Similar to Cresco Labs, Green Thumb Industries promoted a successful start to the recreational business in Illinois. The company opened the sixth store in the state just in time for adult-use cannabis sales.The MSO located in Illinois has a listed market value of $1.9 billion and expects to open another store in Quincy within days. In total, GTI will have 10 stores in the state selling cannabis and served thousands of customers on the New Year’s Day without addressing specifics.With the opening of the adult-use store in Joliet, the company now has 40 stores open. GTI has licenses to reach 96 dispensaries in the next couple of years.As mentioned, the stock has a market value of $1.9 billion with revenues estimates set to double to over $475 million in 2020 and reaching $728 million in 2021. The stock trades at a similar multiple of ~2.6x 2021 sales estimates without the same risk of closing pending deals in order to access this key Illinois market.Looking at the consensus breakdown, Wall Street takes a bullish stance on GTI. 6 "buys" issued over the previous three months make the stock a ‘Strong Buy.' It should also be noted that its $19 average price target suggests 108% upside from the current share price. (See GTI price targets and analyst ratings on TipRanks)
Cresco Closes Acquisition of Origin House, Adding Leading California Wholesale Distribution and Cultivation Operations to its National Footprint
Several Illinois recreational marijuana dispensaries were closed Monday, with some owners saying strong demand has caused a shortage in supplies and staff exhaustion.
The cannabis sector has run into major liquidity issues with the lack of access to the banking system in the U.S. and market issues in Canada. In the process, the market has seen a substantial decline in mergers with a shift in deals towards stock-for-stock ones. Several companies set to close big U.S. deals could stand out in a sector where competitors can’t merge to compete on scale.According to Viridian Capital Advisors, the cannabis sector ended 2019 at a crawl. Capital raises were near non-existent with only 2 for the week ending December 13 and no M&A activity during the week. In the prior year period, 7 capital raises occurred.For the year, 2019 cannabis M&A activity saw 293 deals down from 311 in 2018. As the below chart shows, M&A activity came to a near stop in the last few months. Earlier in the year, 10 deals were happening on a weekly basis.In a lot of cases, deals formed in 2019 were either modified to eliminate cash requirements or completely canceled. Some high-profile deals are still set to close to create leaders in the U.S. multi-state (MSO) operator space. With the opening of recreational cannabis in Illinois on January 1 and potentially additional states in 2020, several companies are set to stand apart from the market.We’ve delved into three companies set to benefit from closing large-scale mergers right as the market freezes up. According to TipRanks’ stock screener, the trio have earned a Strong Buy consensus rating from the analyst community over the past three months. Let's take a closer look:Curaleaf Holdings (CURLF)Curaleaf is still poised to become the biggest cannabis company in the world. The company remains set to close both the Select and Grassroots deals in early 2020 to set Curaleaf up for over $1 billion in pro-forma sales.The Select deal is set to close in early January setting up some positive sentiment on the stock as Curaleaf finally gets to move forward with integration. In addition, closing the deal will provide more confidence on the Grassroots deal, a deal that provides access to the potentially lucrative Illinois market.Select provides the company with access to the California wholesale market with a leading cannabis brand. The deal was modified due to market conditions placing a part of deal based on the obtainment of revenue goals.The Grassroots deal is expected to close in Q1. The deal requires a cash payment of $75 million, 109.2 million shares based on the current stock price of $6.25.In total, Curaleaf expects a business with access to 19 states with 71 retail locations open, 26 processing facilities and 21 cultivation facilities operational. The company is heading towards 131 stores along with a large wholesale distribution network with the Select brand.The stock has 464 million shares outstanding now and nearly 670 million when the two major deals are complete. The updated share count assumes 40.5 million shares will be payable to Select shareholders under the amended agreement. At the current stock price of $6.25, Curaleaf will have a fully diluted market valuation of only $4.2 billion. The stock trades at only 2.8x 2021 sales estimates of $1.5 billion.Curaleaf has earned one of the best analyst consensus ratings on the Street. Out of 8 analysts polled by TipRanks in the last 3 months, seven are bullish on Curaleaf’s prospects, with just one on the sidelines, highlighting a strong bullish backing here. With a healthy return potential of 72%, the stock’s consensus target price stands at $10.43. (See Curaleaf's price targets and analyst ratings on TipRanks)Cresco Labs (CRLBF)Cresco Labs has had some of the most dramatic shift in their acquisition plans during 2019. The company originally planned mergers with Origin House and VidaCann, but the later was canceled due to the cash component of the deal. In the process, Cresco Labs has already closed a deal to acquire the Valley Agriceutials, LLC in New York.Even the Origin House deal was modified to allow Origin House to sell 9.7 million shares at C$4.08 in order to raise gross proceeds of C$39.6 million before the deal closes. The new deal is expected to close in mid-January at an updated ratio of 0.8428 shares of Cresco Labs for each share of Origin House.In October, the company closed a deal for Valley Agriceuticals providing one of the 10 vertically integrated cannabis business licenses in the State of New York. Cresco Labs can operate one cultivation facility and four dispensaries in the state set to grow to $500 million by 2022.In addition, the Tryke Companies deal announced in September has already passed HSR Act waiting period. The company is set to close this deal in early 2020 providing access to the Arizona and Nevada markets with a combined $1.7 billion in annual sales. The deal cost $282.5 million ($55.0 million in cash) and Tryke generated $70.4 million in revenues back in 2018.Analysts estimates 2020 sales of $554 million with 2021 reaching $866 million.Overall, this cannabis player stands as a 'Strong Buy' name among Wall Street analysts. In the last three months, Cresco Labs has won six bullish recommendations. With a return potential of close to 90%, the stock's consensus price target lands at $12.23. (See Cresco Labs' stock-price forecast and analyst ratings)Harvest Health & Recreation (HRVSF)Harvest Health & Recreation is in a similar position as the other U.S MSOs. The company has several pending deals and recently renegotiated one of the deals to reduce cash payments.The biggest deal is for Verano Holdings that passed the HSR Act waiting period on December 4. In addition, the company has pending deals with Falcon, Franklin Labs and Devine Holdings after closing acquisitions with Leaf Life and Urban Greenhouse. The end result was Harvest Health only reporting Q3 revenues of $33.2 million with pro forma revenues of an incredible $95.0 million once including the numbers from all of these deals.After closing the deals, Harvest Health expects to have over 210 facilities including 130 retail locations with more than 1,700 employees across 18 states and territories. Harvest Health has a fully diluted market valuation of under $1.5 billion once the pending M&A deals are done. The large cannabis company will have ~487 million shares outstanding.The full picture of the company is probably not represented in the market mindset now. Harvest Health is still forecasting 2020 revenues between $700 million and $1,000 million with at least 20% EBITDA margins.Judging from the consensus breakdown, it has been relatively quiet when it comes to the analyst activity. Over the last three months, only 3 analysts have reviewed the cannabis stock. Three of which, however, were bullish, making the consensus a Strong Buy. On top of this, the $10.08 average price target puts the upside potential at 216%. (See Harvest Health's price targets and analyst ratings on TipRanks)
Cresco Labs Makes History on January 1st with First Sale of Adult-Use Cannabis in Illinois at its Sunnyside* Lakeview Dispensary
After a rough stretch for the sector, marijuana stock bargains abound; here are 8 that stand out, asserts Timothy Lutts, a leading specialist in the cannabis sector and editor of the Cabot Marijuana Investor.
The Viridian Cannabis Deal Tracker is an information service that monitors capital raise and M&A activity in the legal cannabis industry. Analyzing within 12 key industry sectors, the Viridian Cannabis Deal Tracker provides cannabis companies, investors, and acquirers with the data, trends, and intelligence they need to make informed decisions regarding deal valuations, terms, and structures. Since its inception, the Viridian Cannabis Deal Tracker has tracked and analyzed more than 2,400 capital raises totaling over $29 billion as well as more than 900 M&A transactions.
Only a week after Brazil came out with medical cannabis regulations , another Latin American nation has taken a step forward in the marijuana space. Peru finally rolled out the sale of medical cannabis ...