Cresco Labs (CSE: CL) this morning announced an at-the-market offering, also known as an ATM, to the tune of C$55 million. The offering, to be conducted through Canaccord Genuity Corp, will see Cresco Labs sell subordinate voting shares on the Canadian Securities Exchange from time to time to generate cash for the multi state operator.
Within this mornings press release, Cresco Labs identified that monies raised from the offering will be utilized for general corporate purposes, to repay indebtedness outstanding from time to time, discretionary capital programs, and for potential future acquisitions. The amount of securities sold and the timing of the sales will be up to the discretion of management.
Cresco is not the first issuer on the Canadian Securities Exchange to conduct such an offering. Medmen Enterprjses (CSE: MMEN) has notably been conducting an at-the-market offering throughout the year, selling securities on the market as a last ditch effort to raise capital when required to do so. As a result of being listed on the CSE, monthly reporting requirements included in “form 7” allow investors to know just how many shares have been issued through such an offering. The Deep Dive compiled data back in June on just how much that issuer had raised via its ATM facility.
This mornings news of additional shares hitting the market for financing purposes coincides with a share unlock that occurs today. On May 28, Cresco Labs announced that 205,172,192 common shares on an as-converted basis would see their lock up period extended to December 3, 2019, after which a “portion” of shares would be unlocked. Final unlocking of those shares is expected to occur by June 3, 2020.
Cresco Labs last traded at $7.07 on the CSE.
Information for this briefing was found via Sedar and Cresco Labs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.