Cresco Labs Announces Strategic Restructuring and Plans to Divest California Operations
Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the “Company”), today announced a strategic restructuring that includes plans to sell its California operations. This restructuring is part of the Company’s broader strategy to strengthen its balance sheet, increase cash flow, and prioritize markets with the highest margins and long-term growth potential.
The Company is in active discussions with prospective buyers interested in acquiring its California assets, including cultivation, manufacturing, and select distribution operations. It expects to finalize the transaction within the next several quarters, subject to customary closing conditions and regulatory approvals. Cresco Labs will retain full ownership of its premium FloraCal® brand and continue producing and marketing the brand across key U.S. markets.
“Capital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return,” said Charlie Bachtell, CEO and Co-founder of Cresco Labs. “While California is the largest cannabis market in the world, the structural challenges—ranging from fragmented retail to price compression and the illicit market—combined with our lack of scaled footprint in the state, make it extremely difficult to generate sustainable profitability. Exiting California allows us to reallocate capital and resources to our core markets and build out new markets where we see clear pathways for growth and shareholder value.”
About Cresco Labs Inc.
Cresco Labs’ mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs’ journey by visiting www.crescolabs.com or following the Company on Facebook, X or LinkedIn.
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