Cresco Labs completes financing with lenders to extend term of senior secured term loan and increase facility to $ 200 million

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CHICAGO–(COMMERCIAL THREAD) – Cresco Labs (CSE: CL) (OTCQX: CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multi-state cannabis operators in the United States, today announced closing the agreement with the lenders to extend the maturity of its senior secured term loan (the “Principal Loan”) and exercise the mutual option to increase the size of the loan to US $ 200 million. All lenders have agreed to extend the term of the senior loan until January 23e, 2023 at a reduced interest rate of 12% per annum. In addition, under the terms of the new agreement, Cresco Labs benefits from a greater prepayment option.

The increase in senior loan proceeds will be used to fund the expansion of Cresco Labs’ operations in its strategic footprint in 9 states and to capitalize on other targeted growth initiatives in key markets. Of the US $ 100 million senior loan increase, US $ 85 million was provided by existing lenders, as well as several new large institutional investors to the company. In addition, US $ 15 million of the current liabilities with the Cree Nation of Opaskwayak has been consolidated into the senior loan under the new agreement.

“As a company, we continue to display our responsible capital agenda, ”said Charlie Bachtell, CEO and co-founder of Cresco Labs. “Today, we have secured financing to take advantage of the growth opportunities available to us, improved our cost of capital in a non-dilutive manner, and have increased flexibility in a dynamic capital environment. This agreement to extend and increase the Senior Loan reflects the strong growth and profitability that Cresco Labs has demonstrated and the confidence of our investors in our differentiated strategy. We also believe in the tremendous value of our organization and our ability to raise the level of execution for this industry. ”

About Cresco Labs

Cresco Labs is one of the largest vertically integrated multi-state cannabis operators in the United States. Cresco is designed to become the largest 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 products (“CPG”) approach to cannabis, Cresco’s brand house is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands, including Cresco, Remedi, High Supply, Reserve, Good News and Mindy’s Chef has led artisanal edibles created by James Beard Award winning Chef Mindy Segal. Sunnyside, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build confidence, education and convenience for existing and new cannabis users. Recognizing that the cannabis industry is on its way to becoming one of the country’s leading job creators, Cresco offers the industry’s first comprehensive national social equity and educational development (SEED) program designed to ensure that all members of society have the skills, knowledge and opportunities to work and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.

Forward-looking statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements which may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking information and forward-looking statements are not representative of historical facts or information or the current state of affairs, but represent only the Company’s beliefs regarding future events, plans or objectives, many of which by their nature , are inherently uncertain. and outside the control of the Company. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terms such as “may”, “will”, “should”, “could”, “would”, “expect”, ” plans, “” anticipates “,” believes “,” estimates “,” projects “,” predicts “,” potential “or” continue “or the negative of these or other comparable terms. The forward-looking statements of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or underperformed. as understood by forward-looking statements, including but not limited to the risks described under “Risk Factors” in the Company’s Annual Information Form dated April 28, 2020, and other documents filed by the Company with Canadian authorities in securities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the above list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurance is given as to the future price or trading volumes of Cresco shares, or as to the financial performance of the Company in future financial periods. The Company does not intend to update any of these factors or publicly announce the outcome of any revision of any of the Company’s forward-looking statements contained in this document, whether at the following new information, any future event or otherwise. Unless otherwise indicated, this press release is valid as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof nor does it create an obligation or commitment to update or supplement any information provided. in this press release or otherwise.

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