Cresco Labs Inc. (OTCMKTS:CRLBF) Reports 197% Revenue Growth in FY2019 and 144% In Q4

Cresco Labs Inc. (OTCMKTS:CRLBF) has released its Q4 and FY 2019 financial result in which the company reported YoY revenue growth of around 144%.

Cresco reports 144% revenue growth in Q4

The company reported revenue of $41.4 million in Q4, which is a 14% growth from the third quarter when it reported $36.2 million. The growth in revenue was mainly due to the company’s expansion to new markets and growth in the states where Cresco currently has a presence. Most of the revenue came from operations in Illinois, Arizona, and Pennsylvania, as well as from the HHH and Valley Ag acquisitions.

On pro forma basis, the company reported revenue of around $56 million in the quarter, which was attributable to the minority investments in Origin House and CannaRoyalty Corp. For the full year, the company reported revenue growth of 197% to $128.5 million. Net loss in the fourth quarter was $45.2 million compared to Q4 2018 when it was $4.4 million.

Cresco in a strong position to navigate through COVID-19 crisis

The company’s CEO, Charlie Bachtell, indicated that the company achieved significant milestones in 2019 that will have a significant impact on the success of the company and the industry. Bachtell indicated t6hat they have a strong balance sheet, and they can steer through the coronavirus pandemic and emerge stronger.

At the end of last year, the company had cash and cash equivalents of $49.1 million, which is a massive decline from $131.3 million that the company had at the end of 2019. Amid the COVID-19 pandemic, the company has continued to operate its dispensaries using online ordering and delivery as well as curbside pickup as it emphasizes on social distancing measures.

In 2020 the company is planning to build on its 2019 success to expand its market in Pennsylvania, Illinois, as well as California. Preliminary Q1 2020 results show that the company expects revenue of $66.5 million, which is a YoY growth of 216% and a quarter-over-quarter increase of 61%. Given the current circumstances, the company has decided to put off the acquisition of Tryke.


Cresco Labs Inc (OTCMKTS:CRLBF) Completes Takeover Of Hope Heal Health Inc: Launches The Sale Of Recreational Cannabis At Hope Heal Health Dispensary

Cresco Labs Inc (OTCMKTS:CRLBF) has completed the takeover of Hope Heal Health Inc.  It has received the regulatory nod of the Cannabis Control Commission in Massachusetts for the change in ownership.

Hope Heal owns licenses for the production

Hope Heal owns the licenses for the cultivation and manufacturing of the products in Massachusetts. It also holds licenses for retail operations. The company can obtain two more retail licenses in Massachusetts. Hope Heal manages a manufacturing and cultivation facility in Fall River.

Hope Heal dispensary commences sale of recreational cannabis

Hope Heal dispensary has commenced the sale of recreational cannabis. The company can use its license to serve the prevailing medical cannabis users. Hope Heal can also quickly meet the growing demand for adult-use cannabis through its retail/ wholesale distribution of the products of Cresco. Massachusetts has reported record cannabis sales of $450 million in the first year itself.

Charlie Bachtell, Co-founder and Chief Executive Officer of Cresco, said the company is excited to commence serving the adult-use cannabis users. This is part of its endeavor to establish a global presence. The company will continue to meet the needs of medical cannabis patients in Massachusetts.

After entering a pact to take over Hope Heal in late 2018, Cresco worked with the team of Hope Heal to develop a reputation for consistency and quality in the northeast’s largest adult-use cannabis space. Charlie said the company will look forward to establishing its retail presence in the market under the Sunnyside brand. It is also developing its wholesale channels.

Supports over 40 cannabis dispensaries

Hope Heal services over 40 cannabis dispensaries in Massachusetts. It distributes a full suite of cannabis products to Remedi, Cresco, and Mindy’s Edibles. With River Fall dispensary situated at a distance of less than 20 miles from downtown Providence, Hope Heal expects to attract more adult-use cannabis customers in the tourism sector of Massachusetts and the local communities.

Cresco closes a non-brokered credit agreement

Cresco has announced the closure of a non-brokered credit accord for the Senior Loan of $100 million. It can increase the loan amount by up to $200 million on mutually agreeable terms. The company will use the proceeds for expanding the operations in Illinois.


Cresco Labs Inc. (OTCMKTS:CRLBF) Reports 253% YoY Growth In Revenue and Increase In Profitability in Q2 2019

Cresco Labs Inc. (OTCMKTS:CRLBF) has released its Q2 2019 financial results which shows that the company increased profitability and grew revenue by 253%.

Impressive Q2 2019 results

The company reported YoY revenue growth of 253% and a 42% quarter-over-quarter growth. Cresco Labs CEO Charles Bachtell indicated that the outstanding performance delivered in the quarter shows the leading positions the company has established in the cannabis sector. The exceptional revenue growth the company experienced was a result of market share gains and solid trends in registered markets in the company’s established markets of Pennsylvania and Illinois. The company has also enhanced its distribution and California.

Bachtell indicated that as the company expands its operations in the established markets it has started seeing a positive impact on the projected gross margins. The higher margins and revenue have been vital in driving a considerable increase in Adjusted EBITDA relative to the previous quarter. The Q2 EBITDA was $14.5 million relative to $4.8 million posted a year ago. Without the impact of biological assets, Q2 EBITDA was $2.3million.

Expanding operations through acquisitions

The growing profitability of the company shows its ability to execute and capitalize on its attractive model. The company has a long term operations perspective and it has made investments to position itself as a leader in the cannabis sector going forward. Cresco Labs is transforming the cannabis retail experience through its nationwide rollout of the Sunnyside dispensaries. The company is enhancing its reach in the CND market with the launch of WellBeings product line.

Cresco Labs has been expanding its cannabis cultivation as well as retail operations as they seek to capitalize on the recreational market that will commence next year. The CEO said that the company continues to capitalize on its strong organic growth in the established markets. They are also looking to finalize the pending acquisition of Origin House in Q4 which will greatly help in expanding the company’s distribution network in California. The company has received approval for the acquisition of Valley Agriceuticals.


Cresco Labs Inc (OTCMKTS:CRLBF) Provides Illinois Expansion Update

Cresco Labs Inc (OTCMKTS:CRLBF), one of the major cannabis operators in the U.S issued an update about its market expansion efforts in Illinois on June 25 after adult use was legalized in the state.

Governor JB Pritzker of Illinois passed a bill that allowed cannabis to secure legal status for adult use in the state as of January 2020. This prompted cannabis operator Cresco Labs to release an update about its expansion plans in the state so that it can serve the recreational adult consumers.

“The legalization of adult-use cannabis and the recent expansion of the state’s medical-use program are expected to dramatically increase the consumer base in Illinois,” stated Cresco Labs CEO, Charlie Bachtell.

The CEO also added that the legalization will provide a noteworthy annual revenue that will range from $2 billion to $4 billion as the market approaches maturity. Bachtell also noted that Cresco Labs has been making significant strides in its efforts to serve the widening consumer base while maintaining its lead in Illinois. The company plans to open five new cannabis dispensaries in the state next year so that it can double down on the sale of recreational cannabis.

Aside from the cannabis dispensaries, Cresco Labs also operates 3 cultivation facilities within Illinois. It also plans to expand its cultivation facility which is located in Lincoln. The latter will be expanded to 170,000 square feet and should be ready in Q4 2019.

Cresco Labs launches social equity program for the legalized cannabis market

Cresto Labs recently unveiled a new social equity and educational program through which it plans to promote equity, community engagement, and inclusion in the legalized cannabis industry. The cannabis industry will soon become one of the leading employers in the country courtesy of all the jobs that it will create. The program aims to help facilitate diversity and workplace balance in the cannabis industry.

The program also aims to make sure that the worker will have the right skills for the industry. Cresto Labs is already working together with universities through the social equity program to develop cannabis-based courses and also to host events that will spur more interest in cannabis industry jobs.


Illinois Adopts Legislation Legalizing Adult Use Cannabis From January 2020

Cresco Labs Inc. (OTCMKTS:CRLBF) has commented on the legalization of adult use cannabis in the state of Illinois. Cresco is among the largest multistate cannabis operators in the US and its CEO and Founder Charlie Bachtell was part of the cannabis Legalization Subcommittee of Illinois that was constituted by Governor JB Pritzker’s transition team.

Adult use cannabis will create opportunities in Illinois

Commenting on the legalization Bachtell said that the legislation legalizing adult use cannabis in Illinois fromm2020 is a thoughtful milestone on the expansion of access to cannabis in the state. He added that they expect the move to have a positive impact on social justice issues as well as from a tax revenue perspective as it will expand employment and ownership opportunities for business in the state.

The Cresco CEO stated that as a market leader in the rapidly growing medical use cannabis market in Illinois they are looking forward to leveraging the largest adult use cannabis market in the US. Voters across the country continue to strongly support the legalization of adult-use cannabis with the legislation passed in the state serving as a good model for other states to adopt in legalizing cannabis

The company supports responsible and legal access to cannabis and the CEO stated that there is proof of the resulting benefits like helping curb opioid addiction and lowering of crime rates. Bachtell stated that they were excited about the new opportunities that adult use cannabis will bring to the state and that they were expecting some enhancements on the already existing medical cannabis program.

Legalizing cannabis has social benefits

The legislation legalizes adult use cannabis in Illinois for adult above 21 years as from January 2020. It is estimated that the market of adult use will be10 to 20 times the size of Illinois’ medical cannabis program. Currently, Cresco Labs has a presence in 11 states which include Illinois that is the fifth populous state in the US.

Through its current medical use cannabis licenses in Illinois, Cresco will open five more retail dispensaries for adult use cannabis thus increasing its dispensaries to 10 and its total growing footprint to three facilities.

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