CHICAGO--(BUSINESS WIRE)--Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or “the Company”), a vertically integrated operator and the number one wholesaler of branded cannabis products in the U.S., today provided comments on the legalization of adult-use cannabis in New York.
“The legislation passed today significantly expanding the medical program and legalizing adult-use cannabis in New York represents a massive domino falling in what has been a steady march towards acceptance and legalization of cannabis nationwide. The fourth most populated state in the country with almost 20 million total residents will now have access to high quality, regulated cannabis products and will benefit from the jobs, tax revenue and ancillary business opportunities that this industry creates,” said Charlie Bachtell CEO and Co-Founder of Cresco Labs. “We are thrilled with the inclusive framework put forward by the New York state government as we firmly believe that responsible regulations create respectable programs that lead to robust marketplaces. This balanced approach to creating a competitive market with a strong emphasis on social equity, and prioritizing diversity of ownership, reiterates a trend that states are following as they transition to adult-use programs, while normalizing and professionalizing the U.S. cannabis industry along the way. New York is the financial and cultural capital of the world and the legalization of cannabis for adult-use should serve as a catalyst for the progression of cannabis laws far beyond the boundaries of the state. Cresco Labs is one of the ten operators licensed for vertical operations in New York and we look forward to deepening our position in the state ahead of adult-use sales commencing.”
Highlights from New York Cannabis Legislation
The creation of a robust adult-use market allowing existing operators (like Cresco Labs) to remain vertically integrated. Existing operators will have the ability to increase their retail store count from four to eight medical dispensaries, with the option to co-locate three of those with adult-use retailing. Existing operators will also be permitted to operate cultivation, manufacturing, and wholesale distribution of their products to all existing and future dispensaries around the state. We expect that hundreds of new dispensaries will be authorized under the program. A large portion of the cannabis sales tax revenue will be directed to the communities most impacted by the war on drugs.
Significant improvements to the medical cannabis program include the sale of flower as an approved form, expansion of qualifying conditions to any ailment at the discretion of healthcare practitioners, and improved patient access through additional retail licenses.
New York is the fourth most populous state in the U.S., with a population of approximately 19.5 million (21+ population approximately 14.7 million). New York City is most populated city in the United States and considered the cultural, financial, and media capital of the world. It is estimated that the New York cannabis market will grow to $5 billion at maturity.
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under "Risk Factors" in the company’s Annual Information Form dated April 28, 2020, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco’s shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.