[PRESS RELEASE] – CHICAGO, March 10, 2025 – Cresco Labs Inc., the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, announced its management services agreement with a Tier 3 cultivation license in Kentucky. The agreement entitles Cresco Labs to manage and operate a cultivation facility with up to 25,000 square feet of canopy, marking a significant milestone for the company and establishing Cresco Labs as one of only two operators of Kentucky’s coveted Tier 3 cultivation licenses.

“I look forward to showing Kentucky residents why Cresco Labs’ portfolio is the most popular choice in both medical markets like Pennsylvania and adult-use markets like Illinois,” Cresco Labs CEO Charlie Bachtell said. “The cultivation license allows for the construction of a state-of-the-art cultivation facility with up to 25,000 square feet of canopy, enabling us to deliver the quality and scale we are known for. We’ve spent the last two years focused on solidifying the core and increasing our free cash flow. Kentucky is our first of many opportunities to reinvest that free cash flow back into high ROIC growth initiatives as we continue expanding into new markets.”

Kentucky’s medical cannabis program, launched on Jan. 1, 2025, represents a significant milestone for the state. The program includes a maximum of 115,000 square feet of approved canopy space and 48 retail licenses, with industry analysts forecasting the market to generate more than $135 million in revenue by 2026, growing to over $228 million by 2028. The cultivation license positions the company at the forefront of this burgeoning market, with the opportunity to shape its growth and success.