January 30, 2026 — Leads & Copy — Cresco Labs Inc. has entered into an equity distribution agreement with Haywood Securities Inc., allowing the company to sell up to approximately US$100 million (C$140 million) of subordinate voting shares. The announcement was made today by Cresco Labs, an industry leader in branded cannabis products and operator of Sunnyside dispensaries.
The equity distribution agreement (the “Equity Distribution Agreement“) outlines the terms under which Cresco Labs may, from time to time, sell subordinate voting shares in the company (the “ATM Program”).
According to Cresco Labs, the net proceeds from the ATM Program, if any, will be used principally for general corporate purposes, including potential future acquisitions.
Charlie Bachtell, CEO of Cresco Labs, stated that the ATM program provides the company with a flexible tool to support its strategic objectives as the cannabis industry matures and federal reform progresses. He added that the company remains focused on disciplined capital allocation and driving long-term, risk-adjusted value for shareholders. Bachtell said that any use of the program would be considered opportunistically, with a focus on market conditions, the company’s equity valuation, and the ability to deploy capital into accretive opportunities that enhance profitability and strengthen the balance sheet.
The company said that subordinate voting shares will be distributed at trading prices prevailing at the time of the sale, and prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the company’s management and in accordance with the terms of the Equity Distribution Agreement. To date, no subordinate voting shares have been distributed by the company pursuant to the Equity Distribution Agreement.
Sales of subordinate voting shares, if any, under the ATM Program are anticipated to be made in transactions that are deemed to be “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions, as sales made directly on the Canadian Securities Exchange or any other recognized Canadian “marketplace” within the meaning of National Instrument 21-101 Marketplace Operation. The ATM Program is being made pursuant to a prospectus supplement dated January 29, 2026 (the “Prospectus Supplement”) to the company’s short form base shelf prospectus dated October 3, 2025 (the “Base Shelf Prospectus”), filed with the securities regulatory authorities in each of the provinces of Canada.
The Prospectus Supplement (together with the related Base Shelf Prospectus) and a copy of the Equity Distribution Agreement are available at the company’s profile on the SEDAR+ website maintained by the Canadian Securities Administrators at www.sedarplus.ca.
Electronic or paper copies of the Base Shelf Prospectus, the Prospectus Supplement and the Equity Distribution Agreement, and any amendment to the documents, may also be obtained without charge, upon request only, directly from Haywood by email at ECM@Haywood.com. The Base Shelf Prospectus and Prospectus Supplement contain important, detailed information about the company and the ATM Program. Prospective investors should read the Base Shelf Prospectus and Prospectus Supplement before making an investment decision.
The offering of the securities described herein has not been, and will not be, registered under the U.S. Securities Act or any state securities laws. Accordingly, these securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to an exemption therefrom. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, Subordinate Voting Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Sales under the ATM Program, if any, will be made solely through the facilities of the Canadian Securities Exchange in accordance with applicable securities laws.
Cresco Labs’ mission is to normalize and professionalize the cannabis industry through a CPG 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 that include 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 ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible.
Source: Cresco Labs
