Cresco Labs to sell California operations

Mr. Charlie Bachtell reports CRESCO LABS ANNOUNCES STRATEGIC RESTRUCTURING AND PLANS TO DIVEST CALIFORNIA OPERATIONS Cresco Labs Inc. has arranged a strategic restructuring that includes plans to sell its California operations. This restructuring is part of the company's 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 brand and continue producing and marketing the brand across key U.S. markets. "Capital is increasingly precious in this environment, and our focus is on deploying it where it earns the strongest return," said Charlie Bachtell, chief executive officer and co-founder of Cresco Labs. "While California is the largest cannabis market in the world, the structural challenges -- ranging from fragmented retail to price compression and the illicit market -- combined 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." 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.