Cresco Labs Announces $40M-Plus At-The-Market Offering

Cresco Labs Inc. CL CRLBF said Tuesday that it has signed an equity distribution agreement with Canaccord Genuity under which the company is authorized to sell up to CA$55 million ($41.3 million) of subordinate voting shares.

The company said it plans to use the net proceeds from the program to support general corporate activities, discretionary capital programs, potential acquisitions and repaying debt. 

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With subordinate voting shares being distributed at trading prices at the time of the sale, prices may be different between purchasers and during the period of distribution; therefore the offering is known as "at-the-market." 

The number of subordinate voting shares and timing of the sales will be decided by the company’s management per the terms of the agreement, Cresco said. No subordinate voting shares have been distributed yet. 

Cresco shares were down 8.63% at $4.87 at the time of publication Tuesday. 

Photo courtesy of Cresco.