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Cresco Labs Prices Stock Offering At C$16 Per Share To Raise US$125 Mln

Cresco Labs, a Chicago-based multistate cannabis operator, said it has priced a previously announced offering of its subordinate voting shares at a price of C$16.00 per share for total gross proceeds of about US$125 million.

The issue price represents a 3.3 percent discount to the last closing price of the company's subordinate voting shares traded on the Canadian Securities Exchange as of Thursday, January 14, 2021.

The company expects the entire offering to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Cresco also intends to grant the agents a 30-day option to purchase up to an additional 15 percent of the shares pursuant to the proposed offering on the same terms and conditions to cover over-allotments.

Cresco said it plans to use the net proceeds of the offering for organic and inorganic growth opportunities as well as general corporate purposes.

"In alignment with our stated strategy, this financing will allow us to make targeted investments within our strategic footprint to go deeper in each state and accelerate our growth. In 2020, we built leading market positions in both Illinois and Pennsylvania, and now it's time to use the same playbook to achieve market leadership across the remainder of our platform," said Charlie Bachtell, CEO of Cresco Labs.

The company said the shares will be offered in all provinces of Canada, other than Québec, and in the U.S. on a private placement basis to "qualified institutional buyers". Closing of the offering is expected to occur on or about January 21, 2021.

Last Thursday, Cresco said it agreed to acquire all of the issued and outstanding shares of Bluma Wellness Inc. in an all-share transaction that values Bluma Wellness at an equity value of $213 million. Bluma operates a vertically-integrated, licensed medical cannabis company in Florida.

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