Joe Caltabiano Announces Holdings in Cresco Labs Inc.

CHICAGO, Nov. 30, 2018 (GLOBE NEWSWIRE) -- Joe Caltabiano announced today that, in connection with the business combination (the "Business Combination") completed on November 30, 2018 among certain parties, including Cresco Labs Inc. (the "Company") and Cresco Labs, LLC ("Cresco"), Mr. Caltabiano, directly or indirectly, acquired ownership of:

• 100,000 super voting shares (the "Super Voting Shares") of the Company, representing 20% of the issued and outstanding Super Voting Shares;
   
• an aggregate of 5,200.29 proportionate voting shares (the "Proportionate Voting Shares") of the Company, representing approximately 1.19% of the issued and outstanding Proportionate Voting Shares. The Proportionate Voting Shares are convertible into 200 subordinate voting shares of the Company (the "Subordinate Voting Shares") for each Proportionate Voting Share held.

Following the Business Combination, Mr. Caltabiano and the entities under the control and direction of Mr. Caltabiano continue to hold an aggregate of  16,467,920 units of Cresco (the "Redeemable Units"), which are ultimately convertible into 16,467,920 Subordinate Voting Shares of the Company.

Immediately prior to the completion of the Business Combination, Mr. Caltabiano did not own or exercise control or direction over any securities of the Company. The Proportionate Voting Shares and Redeemable Units represent, on an as-converted to Subordinate Voting Share-basis, 45.61% of the issued and outstanding Subordinate Voting Shares (assuming the conversion only of those convertible securities held by Mr. Caltabiano and not of any other convertible securities of the Company), and 6.79% of outstanding Subordinate Voting Shares on a fully diluted basis.

Mr. Caltabiano holds and controls his shares of the Company for investment purposes only and Mr. Caltabiano may increase or decrease his beneficial ownership or control over the shares of the Company, which he may do, from time to time, depending on market or other conditions and to the extent deemed advisable in light of his general investment strategy. The Super Voting Shares held by Mr. Caltabiano and certain other founders of Cresco are designed to ensure that such individuals have voting control at meetings of shareholders of the Company. The Super Voting Shares are subject to the provisions of the investment agreement among the Company, Mr. Caltabiano, and such other founders, as described in the Company's listing statement dated November 30, 2018, which is posted and filed under the Company's profile on www.sedar.com.

This news release is being disseminated as required by National Instrument 62-103 - The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the anticipated filing of an early warning report (the "Early Warning Report"). A copy of the Early Warning Report will be available on SEDAR under the Company's issuer profile at www.sedar.com and can be obtained by contacting the Company as set out below.

For further information please contact:

John Schetz, General Counsel, Cresco Labs Inc.
520 W Erie St #220,
Chicago, IL 60654
USA

Phone: (312) 410-8226
Email: [email protected]