|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.98 - 6.30|
|52 Week Range||0.81 - 40.63|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||13.71|
Cresco Labs Inc. (“Cresco Labs” or the “Company” – CSE: CL, OTCQX: CRLBF) and CannaRoyalty Corp. d/b/a Origin House (“Origin House” – CSE: OH, OTCQX: ORHOF) are pleased to announce today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), has expired with respect to the proposed acquisition of Origin House by Cresco Labs (the “Transaction”). The expiration of the waiting period under the HSR Act satisfies one of the remaining conditions to completing the Transaction.
As the cannabis industry pushes to enter more states, it may be more than traditional business and regulatory issues that determine who is successful. A key factor may be helping communities address social equity, said the head of a company that's trying to be at the forefront of that mission.
Cresco Labs (CL.CN) (CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that it has received Early Approval Adult-Use Dispensing Organization Licenses for all five of its existing Illinois medical cannabis dispensaries. Cresco received approval for adult-use cultivation on September 30th making it the only company approved for both adult-use cultivation and adult-use dispensary operations in the state. “Illinois is Cresco’s home state and with the transition to a legal adult-use market in January of 2020, the state is expected to produce between $2 – 4 billion in sales at maturity (BDS Analytics)i, making this one of the single largest opportunities in the U.S. cannabis space today,” said Charlie Bachtell, Cresco Labs CEO and Co-founder.
Investors, Entrepreneurs and Publicly-Traded Cannabis Companies Convene to Discuss the Current State of the Cannabis Industry New York, New York--(Newsfile Corp. - October 15, 2019) - OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, and the Canadian Securities Exchange (CSE), a Canadian listing exchange, announced that they will host a Cannabis Investor Day at OTC Markets Group's New York City headquarters on Wednesday, October 30, 2019. The ...
Investors, Entrepreneurs and Publicly-Traded Cannabis Companies Convene to Discuss the Current State of the Cannabis Industry NEW YORK , Oct. 15, 2019 /PRNewswire/ -- OTC Markets Group Inc. (OTCQX: OTCM), ...
BOCA RATON, Fla. , Oct. 10, 2019 /PRNewswire/ -- Jushi Holdings Inc. ("Jushi" or the "Company") (NEO:JUSH.B) (OTCQX:JUSHF), a globally-focused, multi-state cannabis and hemp operator, today announced the closing of the sale of its 16.5% ownership interest in Gloucester Street Capital (" Gloucester "), the parent company of Valley Agriceuticals and owner of one of ten New York licensed medical cannabis operators. Jushi previously purchased its 16.5% interest in Gloucester in February 2018 for US$5 million in cash. The sale is part of the Cresco Labs Inc.'s (CL.CN) (CRLBF) acquisition of Gloucester .
Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CL.CN) (CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that it has closed its acquisition of 100% of the membership interests of Gloucester Street Capital, LLC (“Gloucester”), the parent entity of Valley Agriceuticals, LLC ("Valley Ag") via a merger between Gloucester and a subsidiary of Cresco Labs. As a result of this acquisition, Cresco Labs now holds one of the 10 vertically integrated cannabis business licenses granted in the State of New York by the New York State Department of Health.
Vertically integrated cannabis company Cresco Labs Inc. (CSE: CL) (OTC: CRLBF) said Monday that its three Illinois-based cultivation facilities have obtained approval from the state's Department of Agriculture for adult-use cannabis cultivation. “We are very pleased to receive the first adult-use cultivation approvals granted in Illinois, which speaks to our continued success in efficiently executing on our strategic priorities,” Charlie Bachtell, Cresco's co-founder and CEO, said in a statement.
Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CL.CN) (CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that its three cultivation facilities in the state of Illinois have been approved for growing adult-use cannabis by the Illinois Department of Agriculture. The three facilities, located in Joliet, Kankakee and Lincoln, can represent a total combined cultivation space at completion of 630,000 square feet per Illinois state regulations. “We are very pleased to receive the first adult-use cultivation approvals granted in Illinois, which speaks to our continued success in efficiently executing on our strategic priorities,” said Cresco Labs CEO and Co-founder Charlie Bachtell.
Cresco Labs (CRLBF – Get Report) announced it has raised $46.3 million in non-dilutive capital in a sale-and-leaseback agreement with Innovative Industrial Properties.The binding agreement includes the sale of Cresco's Joliet and Kankakee properties located in Illinois. Combined, the two properties have about 100,000 square feet in total.While this partially solves one of the concerns shareholders have concerning, the company's diluting of its stock to make acquisitions, the more weighty matter is the company waiting for approval of three major acquisitions that remain on hold, which continues to suppress the share price of Cresco.Terms and purpose of the dealCresco has signed "a binding agreement to sell its Joliet and Kankakee, Illinois properties to Innovative Industrial Properties, Inc. for approximately $46.3 million."Included in the sales price is funding for "additional tenant improvements at the Kankakee property."At the time of the closing of the sale, which is expected to be in some time within the next 30 days, Cresco Labs will enter into a triple-net lease agreement with IIP that will last for an unspecified but significant period of time.The two facilities will continue to operate as a licensed cannabis cultivation and processing facility.Cresco Labs CEO Charlie Bachtell believes the purpose of the sale and agreement is to capitalize expanding its Illinois operations as the state prepares to legalize recreational marijuana on January 1, 2020.Bachtell added that the Illinois cannabis market is estimated to climb to a range of $2 billion to $4 billion in annual sales when it reaches its full potential. He sees this as a means to grab market share and boost revenue in the years ahead.Some of the capital will be allocated to increase its production capacity in Illinois, and scale its retail dispensary network in order to meet expected high demand from medical and recreational cannabis consumers.One of the better things I see with this move is that it has substance to it, in the sense that it is visible and should result in an improvement in revenue and market share for Cresco Labs over time, assuming it executes its strategy successfully.It's also becoming more important for the market to see capital raised that isn't dilutive to existing shareholders. That has becoming more important as the industry matures.With three major deals uncertain, this gives shareholders something tangible that can be counted on.Pending merger dealsProbably the major negative catalyst for Cresco Labs is the ongoing waiting period to get approval for three potential acquisitions in its pipeline.The major announced acquisition was Origin House on April 1, which was covered widely in the media. Cresco offered about $850 million for Origin. After a predictable initial boost from the offer, Origin House has not dropped to a market value of only $347 million as I write.Part of that is from regulatory uncertainty, and the other is the decline in positive market sentiment for the cannabis. The deal was expected to be closed by the end of June.In March the company said it was buying Florida-based VidaCann for $120 million in stock and cash. VidaCAnn has a medical cannabis license in Florida to operate 30 retail dispensaries, with 20 of them expected to be operational by the end of 2019. The medical cannabis market in Florida is projected to be at close to $1.7 billion by 2022.This still also remains on hold as the company waits for approval.Last, Cresco recently announced it has acquired Tryke for $282.5 million. It has six retail stores located in Arizona and Nevada. It represents the Reef Dispensary brand.In 2018 Tryke generated revenue of $70.4 million and a healthy EBITDA of $24.6 million.What's interesting in all of this is Cresco Labs, for now, appears to be ignoring regulatory concerns and continuing on with making offers for companies that will provide it with long-term scale.The obvious problem is whether or not regulators decide the MSOs are gaining too much market share and limit their upside potential.ConclusionThe capital raise for Cresco in association with the Illinois cannabis market was a good move. It appears to the potential to compete strongly in the state when recreational cannabis is legalized on January 1, 2020. The problem is the company isn't going to get much of a boost from this in the near term because the pending acquisitions account for approximately 50 percent of its future revenue estimates. The longer it takes for them to be approved, the more the market is going to increase in its concern that there may be a negative outcome for Cresco.On the other hand, this is building a pent-up situation, that if resolved in the positive for Cresco, its share price is going to soar; that will be especially true if approvals for the three acquisitions come close together.Another possible scenario would be a split decision, where one or two are approved, and the other deals rejected. Even that would be a positive when compared to where it's at now, but the market value of the company wouldn't be near what it would be if all the acquisitions are approved.There remains a lot of risk for Cresco, but the reward is also very high. At the price it's trading at now, it would be worth it in my opinion to take at least a small position in Cresco.Even under the worst-case scenario where none of the deals were approved, the company as it stands today still has a lot of growth left in it.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.
Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CL.CN) (CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that it has signed a binding agreement to sell its Joliet and Kankakee, Illinois properties to Innovative Industrial Properties, Inc. (“IIP”) for approximately $46.3 million, which amount includes funding for additional tenant improvements at the Kankakee property. Concurrent with the closing of the sale, Cresco Labs will enter into a long-term, triple-net lease agreement with IIP and will continue to operate each property as a licensed cannabis cultivation and processing facility. “This sale-and-leaseback agreement with IIP represents a non-dilutive capital solution for Cresco Labs that will support the expansion of our Illinois operations in preparation for the legalization of adult-use cannabis on January 1, 2020,” said Cresco Labs CEO and Co-founder Charlie Bachtell.
A vote in Congress to ease banking restrictions on cannabis companies is being praised for the possibility the legislation could make operating in the nascent industry much easier and more fair, and for the signal it sends that marijuana is moving toward establishment acceptability. The House on Wednesday overwhelmingly passed the SAFE Act, which would remove restrictions that prevent cannabis companies from using the banking system because the product, while legal in many states, remains federally illegal. The measure still would need approval from the Senate before continuing to President Donald Trump's desk.
“The passage of the SAFE Banking Act by the U.S. House of Representatives represents a significant first step in the effort to provide stability and security to the multibillion-dollar cannabis industry,” said Cresco Labs CEO and Co-founder Charlie Bachtell. The passage of the SAFE Banking Act will also provide access to banking and capital to fuel diversity and make the cannabis industry more inclusive for everyone.
On Monday, Curaleaf (CURA) (CURLF) became the first company to launch medical cannabis flower products in New York. The state offers growth opportunities.
Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CL.CN) (CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, is pleased to announce the closing today of its previously announced public offering (the "Offering"). Pursuant to the Offering, the Company issued 7,350,000 units (the "Units") at a price per Unit of C$10.00 (the "Offering Price"), for gross proceeds of C$73,500,000. The Offering was conducted by a syndicate of underwriters, led by Canaccord Genuity Corp., and including Beacon Securities Limited, Cormark Securities Inc., Eight Capital and GMP Securities L.P..
ETFMG Alternative Harvest ETF (NYSE: MJ), one of the largest cannabis ETFs on the market, on Wednesday will pay a quarterly dividend of 28 cents per share to shareholders of record as of the close of business on Sept. 23. In an effort to push for the legalization of adult-use cannabis in New Jersey, the state's National Organization for the Reform of Marijuana Laws chapter, Garden State NORML, will conduct a lobby day and rally to support SB2703: the New Jersey Cannabis Regulatory and Expungement Aid Modernization Act. Last week, Cresco Labs Inc (OTC: CRLBF) announced entering into an agreement with a group of investment dealers led by Canaccord Genuity to offer them an aggregate of 7.35 million units at a price of CA$10 ($7.53) apiece and approximately 1.10 million units as an over-allotment option.
The U.S. multi-state operator (MSO) cannabis sector has taken severe stock hits in the last few months. Companies like Cresco Labs (CRLBF) have generally all hit financial goals, but the market has shaken off the positive developments due to a lack of progress of closing key mergers and federal approval of cannabis. The stock is down sharply as the company stacks another merger on top of other large pending deals.Another MergerThe stock slumped to nearly $7 following a rally above $13 just back in April. The nearly 45% loss is in line with most domestic MSOs as the excitement over large-scale acquisitions has faded with none of the deals closing in a timely manner.Cresco Labs announced the acquisition of Tryke of $282.5 million. Tryke operates six retail stores in Arizona and Nevada under the Reef Dispensary brand.On the surface, the deal appears solid with the company generating 2018 revenues of $70.4 million and an impressive EBITDA of $24.6 million. A deal costing 12x trailing EBITDA in a fast-growing sector is typically encouraged.The problem here is that Cresco Labs has several pending major acquisitions and the market is naturally concerned the regulators will balk at these MSOs gaining too much scale.The company announced the acquisition of Origin House on April 1 in a deal promoted as the largest ever public company deal in the U.S. cannabis sector. The deal had a listed value of C$1.1 billion or roughly $850 million at the time. Origin House has a listed market value of only $440 million now as investors lose interest in the sector and the deal closing.The market clearly has concerns about the deal closing with Origin House trading at only $5.50 now. The company originally forecast the deal closing by the end of June and the date was recently pushed out as closing after the waiting period for HSR expires on October 17. The market isn’t comforted by the ongoing delay.In addition, VidaCann hasn’t closed adding more regulatory uncertainty. The pending acquisition target expects to have 20 stores open in Florida by the end of 2019 to greatly expand on the market opportunity for Cresco Labs. The Tryke merger makes for three relatively large-scale deals pending.Focus On The FutureThe Origin House deal along with VidaCann are crucial to the future of Cresco Labs. The company only reported Q2 revenues of $29.9 million while pro-forma revenues were up at $52.7 million. The pending acquisitions already accounted for nearly 45% of the revenue stream counted on by the company and this Tryke deal adds another $17.5 million in quarterly revenues based on FY18 numbers.The company already has the Illinois market projected to reach annual sales in the $2 to $4 billion range with adult-use cannabis starting on January 1. In addition, Cresco Labs got regulatory approval for an acquisition of Valley Agriceuticals, LLC providing for access into New York. Along with a license in Michigan, Cresco Labs is poised for substantial growth with or without all of these pending acquisitions closing.Consensus VerdictWith 7 'Buy' ratings in the last three months, the word on the Street is that Cresco Labs is a ‘Strong Buy'. Its $17.41 average price target suggests about 150% upside potential. (See Cresco Labs's price targets and analyst ratings on TipRanks)TakeawayThe key investor takeaway is that regulatory uncertainty is a big factor in the weakness of Cresco Labs. For investors that believe in the sector, Cresco Labs now offers the potential for a $1+ billion business trading with a fully diluted market valuation of only $2 billion. Unfortunately, the stock is likely to trade weak until progress is made on all of these pending deals.Disclosure: No position.
CHICAGO and OTTAWA , Sept. 17, 2019 /CNW/ - Cresco Labs Inc. ("Cresco Labs") (CL.CN) (CRLBF) and CannaRoyalty Corp. d/b/a Origin House ("Origin House" and together with Cresco Labs, the "Companies" – CSE: OH, OTCQX: ORHOF), both announced today that, effective September 16, 2019 , they have each submitted certifications of substantial compliance with the request for additional information ("Second Request") from the United States Department of Justice Antitrust Division (the "DOJ") in connection with Origin House's and Cresco Labs' notification to U.S. antitrust authorities pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act"), as amended, in respect of Cresco Labs' pending acquisition of Origin House (the "Transaction"). The HSR Act waiting period was extended by the issuance of the Second Requests to Cresco Labs and Origin House.
With this agreement Cresco Labs will expand its presence acquiring six prime Reef Dispensary locations in Nevada and Arizona, licensed cultivation and process capacity in Phoenix and Las Vegas, and it will enter the Utah market, the company said. Entering the Utah market will mark the company’s access to a 12th state, and the transaction will also make the company one of the top 3 cannabis operators in Nevada, and it will increase its market share in Arizona by 300%, as per the press release. Cresco Labs said the purchase price is set to around $282.4 million, which will consist of the company’s shares (around $227.5 million) and cash (around $55 million).
Tryke generated US$70.4 million in Revenue and US$24.6 million in EBITDA in fiscal 20181, making it one of the highest grossing and most profitable private cannabis companies in the U.S. market. Arizona is one of the largest and fastest growing medical-only markets with estimated 2019 sales of up to US$760 million 2 . Tryke has established six of the best-positioned retail locations in Nevada and Arizona, including the iconic Reef Dispensary located adjacent to the Las Vegas Strip and five additional operating locations in North Las Vegas, Sparks and Phoenix, AZ.
Tryke generated US$70.4 million in Revenue and US$24.6 million in EBITDA in fiscal 20181, making it one of the highest grossing and most profitable private cannabis companies in the U.S. market. Arizona is one of the largest and fastest growing medical-only markets with estimated 2019 sales of up to US$760 million 2. Tryke has established six of the best-positioned retail locations in Nevada and Arizona , including the iconic Reef Dispensary located adjacent to the Las Vegas Strip – which has produced over US$65 million in revenue since 2015 – and five additional operating locations in North Las Vegas , Sparks and Phoenix, AZ.
Cowen analyst Vivien Azer initiated coverage Friday of five multi-state cannabis operators, saying she's bullish on those that rely on the consumer packaged goods model given the higher margins, especially relative to those relying on the retail model. Azer started Green Thumb Industries Inc. at outperform with a stock price target of $18.50, Curaleaf Holdings Inc. at outperform with a $10.50 target, and Cresco Labs Inc. at outperform with a $14 target. "We believe that the greatest shareholder value will be created through businesses that emulate a traditional CPG finished goods model, given its superior margin structure," Azer wrote in a note to clients. Meanwhile, Azer started MedMen Enterprises Inc. at underperform with a $1.50 price target. "[MedMen] is the clear leader in the [California] market, with a distinguished brand, reflecting an attractive retail concept," Azer wrote. "However, to us, retail is less attractive than wholesale. And, an over-reliance on retail revenues today, coupled with excessive spending and notable management turnover, make this a'show-me' story." Azer also started Acreage Holdings Inc. at market perform with a $9 target, saying consolidation a of a "disparate network of dispensaries" and launching a "nascent brand strategy" could prove challenging. The ETFMG Alternative Harvest ETF was up 0.4% in afternoon trading, but has lost 28.7% over the past three months, while the S&P 500 has gained 3.5% in three months.