A good example of a strong upward trend with a present probabilistic posture of strength ahead is to be found on the CRESCO LABS ORD (OTCMKTS:CRLBF) chart. The stock has been in a rip-roaring ascent since it started trading publicly last December, with shares moving over 130% higher in that time. One of the key factors in the cannabis growth game is access to capital, a fact further on display by the company’s recent move to draw from the market. Specifically, the company just announced that it has filed and received a receipt for a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada, except Québec.
According to the release, “the Shelf Prospectus, when made final, will allow the Company to offer up to C$500,000,000 of subordinate voting shares, debt securities, subscription receipts, warrants, and units, or any combination thereof, from time to time during the 25-month period that the (final) Shelf Prospectus is effective. The Company filed this Shelf Prospectus in order to maintain financial strength and flexibility going forward but has not entered into any agreements or arrangements to authorize or offer any securities at this time. The specific terms of any future offering of securities, including the use of proceeds from any offering, will be established in a prospectus supplement to the Shelf Prospectus, which supplement will be filed with the applicable Canadian securities regulatory authorities.”
CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.
The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.
In addition, it operators a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.
The company was formerly known as Cresco Labs, LLC and changed its name to Cresco Labs Inc. in November 2018. Cresco Labs Inc. is headquartered in Chicago, Illinois.
According to the release, “Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis operating in ten states, the company focuses on entering highly regulated markets with outsized demand potential and high barriers to entry. Its impressive speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a cutting-edge brand strategy spearheaded by several of the brightest minds in consumer marketing in the nation. Cresco’s products are tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at crescolabs.com.”
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As noted above, CRLBF just announced that it has filed and received a receipt for a preliminary short form base shelf prospectus with the securities commissions in each of the provinces of Canada, except Québec.
We’ve witnessed 7% during the past month in terms of shareholder gains in the company. What’s more, the name has seen interest climb, with an increase in recent trading volume of 58% beyond what we have been seeing over the larger time frame.
“Although we have no immediate plans to raise capital through this shelf filing, we believe it’s prudent to give the Company the flexibility to access capital in the future when opportunities emerge to continue executing on our growth strategies,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “We have consistently demonstrated strong capital stewardship and we expect to continue driving shareholder value through our capital deployment.”
Now commanding a market cap of $1.37B, CRLBF has virtually no cash on the books, which must be weighed relative to about $188K in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $CRLBF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CRLBF, either long or short, and we have not been compensated for this article.