Cresco stock tanked this morning after Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) said that the company's President, Joe Caltabiano, is leaving the cannabis firm.
A lot is happening at the executive level of many cannabis companies, and this morning, such a development emerged with regards to Cresco Labs. The President of the company, Joe Caltabiano, stated that he is going to step down from his position. The company did not make a comment with regard to the development yet.
Caltabiano stated that he aims to stay in the cannabis industry, but he wants to pursue opportunities elsewhere. He went on to state that although he is proud of his accomplishments with the company, he believes that there is "more to be done" in the industry, and that would not have been possible at Cresco.
At this point in time, Cresco Labs is one of the biggest multi-state operators in the United States, and since its establishment in Chicago back in 2013, it has grown impressively. It has 1.2 million square feet of cultivation space that is spread over as many as 18 facilities.
Cresco stock is down over 7% to $4.20.
Q3 Earnings Recap
Cresco has also been able to generate impressive growth. In the third quarter, its revenue soared by 181% year-on-year and 21% sequentially. Revenue for the 2019 financial year stood at $120 million. Despite not being profitable regularly, the company has managed to generate positive EBITDA.
Cresco Labs currently operates in eight states in the United States, but it is expected to add three more states soon. More importantly, many of these markets are not fully matured yet, and that gives the company the chance to eventually generate significant growth.
The acquisition of Origin House is another major development for the company. The acquisition will make the company one of the biggest distributors in the state of California, which is among the most lucrative cannabis markets.
Cresco is also closing in on the Tryke acquisition, which should make the company an important player in the states of Arizona and Nevada.
The United States cannabis market is currently valued at $2 billion but is expected to touch a valuation of $80 billion in the next 10 years, meaning there could be room for notable growth here for Cresco.
Cresco stock has lost over 35% since the beginning of the new year.
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