Marijuana producer Cresco Labs reports widening losses, terminates acquisition – Cannabis Hemp Blog

Chicago-based marijuana producer Cresco Labs Inc. reported Monday a fourth-quarter net loss of $45.2 million, widening from a net loss of $4.4 million a year ago. The company did not provide per-share figures. Cresco revenue grew to $41.4 million from $17 million in the year-ago quarter. The company said it had $49.1 million in cash and equivalents at the end of December. Cresco also said Monday that it had reached an agreement to terminate its acquisition of Tryke Companies, citing COVID-19, a decline in the capital markets and regulatory delays as reasons. Halting the deal will provide Cresco with roughly $55 million in cash and will pay a termination fee of $1.3 million in stock. The company said that amid the coronavirus pandemic it continues to operate all of its dispensaries with expanded hours using curbside pickup, online ordering and delivery. U.S.-traded shares of Cresco gained 0.9% to close at $4.36 during the regular session as the S&P 500 index gained 1.5%.

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