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Cresco Labs Announces Strategic Restructuring and Plans to Divest California Operations

CHICAGO--(BUSINESS WIRE)-- Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (鈥�Cresco Labs鈥� or the 鈥�Company鈥�), today announced a strategic restructuring that includes plans to sell its California operations. This restructuring is part of the Company鈥檚 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庐 brand and continue producing and marketing the brand across key U.S. markets.

鈥淐apital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return,鈥� said Charlie Bachtell, CEO and Co-founder of Cresco Labs. 鈥淲hile California is the largest cannabis market in the world, the structural challenges鈥攔anging from fragmented retail to price compression and the illicit market鈥攃ombined 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.鈥�

About Cresco Labs Inc.

Cresco Labs鈥� 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鈥檚, 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鈥� journey by visiting or following the Company on , or .

Forward-Looking Statements

This press release contains 鈥渇orward-looking information鈥� within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 鈥渇orward-looking statements鈥� within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, 鈥渇orward-looking statements鈥�). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company鈥檚 beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company鈥檚 control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 鈥榤ay,鈥� 鈥榳ill,鈥� 鈥榮hould,鈥� 鈥榗ould,鈥� 鈥榳ould,鈥� 鈥榚xpects,鈥� 鈥榩lans,鈥� 鈥榓nticipates,鈥� 鈥榖elieves,鈥� 鈥榚stimates,鈥� 鈥榩rojects,鈥� 鈥榩redicts,鈥� 鈥榩otential,鈥� or 鈥榗ontinue,鈥� or the negative of those forms or other comparable terms. The Company鈥檚 forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company鈥檚 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 鈥淩isk Factors鈥� in the Company鈥檚 Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; 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鈥檚 forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs鈥� shares, nor as to the Company鈥檚 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鈥檚 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.

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Source: Cresco Labs