Cresco Labs receives commitments for loan refinancing

Mr. Charlie Bachtell reports CRESCO LABS ANNOUNCES COMMITMENTS TO REFINANCE ITS SENIOR SECURED CREDIT FACILITY Cresco Labs Inc. has successfully obtained commitments to refinance its senior secured credit facility. The refinancing, upon closing, will provide for a new senior secured term loan totalling $325-million (U.S.), bearing an interest rate of 12.5 per cent per annum, and maturing on the fifth year anniversary of the closing of the refinancing. The new facility will replace the company's existing $360-million (U.S.) credit facility, providing enhanced financial flexibility and favourable terms, including provisions that will allow for the prepayment of up to $125-million (U.S.) at a reduced prepayment premium. The refinancing comes at a time when access to capital remains highly constrained across the U.S. cannabis sector. With an estimated $2-billion in industry debt maturities coming due over the next 18 months, Cresco Labs' ability to refinance its credit facility underscores the resilience of its business model and enables it to execute on its multiyear growth plan. "Securing this refinancing is a testament to the strength of our business and the trust we've built with top-tier institutional lenders," said Charlie Bachtell, chief executive officer of Cresco Labs. "In an environment where capital is scarce, Cresco stands out. We've extended our maturity, improved our balance sheet position and done so without dilution. This positions us to play offense instead of focusing on refinancing risk. It's a strategic win in a capital-constrained market." Proceeds from the new facility, together with cash on hand, will be used to repay in full the existing term loan, finance capital expenditures and support targeted growth initiatives across Cresco's core U.S. markets. The refinancing was negotiated at arm's length, and includes customary financial and operational covenants. The facility contains no equity or convertible features. A.G.P. Canada Investments ULC and Cormark Securities Inc. acted as lead financial advisers and lead arrangers on the transaction. The lead lenders were advised by Paul Hastings LLP. The refinancing is expected to close on or about Aug. 13, 2025, subject to customary closing conditions. About Cresco Labs Inc. Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG (consumer packaged goods) 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, including Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's 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 continuing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED (social equity and educational development) initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, work force development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. We seek Safe Harbor.