Cresco Labs Insiders Unload $32.8 Million Worth Of Shares In Early Morning Trade

Yesterday morning, popular cannabis investor Todd Harrison commented on Twitter that unusual trading activity had taken place on that of Cresco Labs (CSE: CL) in pre-market trading. At the time, it was viewed as a bullish move, with it being perceived that someone of significance was taking a position given that 2.35 million shares were traded in a single block, followed by a further 0.25 million.

However, as it turns out, the transaction was facilitated by insiders of the company, with a total of 2.60 million shares leaving the hands of certain insiders. While its still unclear whom specifically the recipient was, insiders managed to offload a significant portion of their ownership in subordinate voting shares of the company. Furthermore, it appears the transaction was prepared a week in advance.

Insider Charles Bachtell, whom is founder and CEO of the company, initially converted 1.5 million LLC units of the company into subordinate voting shares of Cresco on December 1, 2020. Yesterday morning, he unloaded 1.3 million of these, at a price per share of $12.60 – netting $16.38 million in the process.

Also included in the large block trade evidently is that of Robert Sampson, a director and former COO of the company, whom converted 750,000 LLC units to subordinate voting shares on November 30. Yesterday morning, he unloaded 650,000 of those shares for gross proceeds of $8.19 million.

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Finally, director Dominic Sergi was also involved in the transaction, having sold 650,000 subordinate voting shares for gross proceeds of $8.19 million. His conversion of 750,000 LLC Units to subordinate voting shares however occurred back on August 24, 2020.

All told, insiders sold a total of 2.6 million shares, for gross proceeds of $32.76 million on Monday morning. As previously stated, it currently remains unclear whom the purchaser was within the large transaction.

Cresco Labs last traded at $12.91 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.