Cresco Labs Receives Approval to Enter the Michigan Market
Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CSE: CL) (OTCQX: CRLBF), one of the largest vertically integrated multistate
cannabis operators in the United States, today announced that it has completed the most comprehensive portion of Michigan’s
application process, being pre-qualified for a cultivation and processing license by the Department of Licensing and Regulatory
Affairs Medical Marihuana Licensing Board. The pre-qualification represents the authorization of the entity to move forward with
the licensing process for its intended facilities.
“We continue to execute well on our expansion strategy and leverage our professional, proven approach to win access to new
markets,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “Entering Michigan will add another large market opportunity to our
growing footprint and increase our total addressable consumer base to more than 150 million people. Michigan is one of the largest
medical cannabis markets in the country with an estimated patient population of nearly 300,000 patients and is steadily moving
towards implementation of an adult-use program. Pre-qualification is the most significant regulatory hurdle in the Michigan
licensing process. We expect to replicate the process that has enabled us to quickly and efficiently get operational in other
markets and begin making our full suite of brands available to patients wanting to experience the positive medicinal benefits of
cannabis.”
Cresco Labs has applied for a cultivation and processing facility to be located in a former 100,000+ square foot factory in
Marshall, Michigan. The Company has been granted conditional local approval to build and operate the facility pending final
approval of its state facility license application.
Michigan Market:
Michigan is the 10th largest state in the country with a population of nearly 10 million people and more nearly
300,000 registered patients in the state’s medical cannabis program. According to Arcview Market Research/BDS Analytics, the total
cannabis market in Michigan – including both medical spending and future legalized adult-use spending – is projected to increase to
nearly $1.4 billion by 2022 from $869 million in 2018.
Cresco Labs Footprint:
Upon the receipt of licensure in Michigan and the closing of the Company’s pending acquisition in Florida, Cresco Labs will have
15 production facilities, 21 operational retail dispensaries and licenses to operate a total of 51 retail dispensaries across 11
states – Illinois, Pennsylvania, Ohio, Nevada, California, Arizona, Florida, and Michigan with New York, Maryland and Massachusetts
pending regulatory approval. The Company’s products are currently on the shelves of over 250 dispensaries. Cresco Labs will have
operations in seven of the ten most populated states in the country with legalized cannabis programs totaling more than 150 million
residents, which is nearly 70% of the estimated total addressable US cannabis market.
About Cresco Labs:
Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a
demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis operating in ten states, the
company focuses on entering highly regulated markets with outsized demand potential and high barriers to entry. Its impressive
speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s
proven ability to execute is complemented by a cutting-edge brand strategy spearheaded by several of the brightest minds in
consumer marketing in the nation. Cresco’s products are tailored to all major consumer segments: everyday cannabis, medicinally
focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco
Labs at
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 that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of
the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements
are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs
regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's
control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking
terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’
‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s
forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual
results, performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking statements, including but not limited to those risks discussed under "Risk Factors" in the company’s
CSE Listing Statement filed with SEDAR; and other factors, many of which are beyond the control of the Company. Readers are
cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance
on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco’s
shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of
these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained
herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release
speaks 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 or create any duty or commitment to update or supplement any information provided in this press
release or otherwise.
Media:
Jason Erkes, Cresco Labs
Chief Communications Officer
press@crescolabs.com
Investors:
Aaron Miles, Cresco Labs
Vice President, Investor Relations
investors@crescolabs.com
For general Cresco Labs inquiries:
312-929-0993
info@crescolabs.com
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