Mr. Charles Bachtell of Cresco Labs reports

CRESCO LABS AND COLUMBIA CARE MUTUALLY AGREE TO TERMINATE MERGER

Cresco Labs Inc. and Columbia Care Inc. have entered into a mutual agreement, dated July 30, 2023, to amicably terminate the definitive arrangement agreement dated March 23, 2022, as amended on Feb. 27, 2023, pursuant to which Cresco agreed to acquire all of the issued and outstanding shares of Columbia Care. There are no penalties or fees related to the mutual agreement to terminate the transaction.

"In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction," said Charles Bachtell, chief executive officer and co-founder of Cresco Labs.

Mr. Bachtell continued: "Moving forward, we remain committed to our Year of the Core strategy, which involves the swift restructuring of low-margin operations, improving competitiveness and driving efficiencies in markets where we maintain leading market share, and scaling operations to prepare for growth catalysts in emerging markets. A strong core will enable us to take advantage of the margin-accretive, growth opportunities we foresee within this tough economic time for the cannabis industry. While this is not the outcome we originally hoped for, we are confident Cresco Labs is in a stronger position moving forward."

"After careful consideration, we are confident in the mutual decision to move forward as separate, stand-alone companies. This is the best path forward for Columbia Care's employees, customers and shareholders. We are thankful for the collaboration and partnership with the Cresco team throughout this extensive process," said Nicholas Vita, chief executive officer and co-founder of Columbia Care. "Over the last 16 months, we have reviewed every aspect of our business, remained decisive and have made substantive changes that significantly improved our operations -- positioning us with significant strategic and operational strength at this inflection point in the company's history. We are looking forward to realizing the benefits of these changes, as well as focusing on the opportunities in our outstanding footprint in markets with embedded upside; diversified portfolio of brands; our award-winning national retail brand, The Cannabist; recently implemented operational and organizational efficiencies; pro-active balance sheet management activities; and meaningful equity capital markets initiatives that will propel Columbia Care into one of the most profitable and resilient companies in the industry over the next several years."

As an additional update, the definitive agreements dated Nov. 4, 2022, to divest certain New York, Illinois and Massachusetts assets of Cresco and Columbia Care to an entity owned and controlled by Sean "Diddy" Combs have also been terminated, effective July 28, 2023.

About Cresco Labs Inc.

Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer packaged goods (CPG) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprise some of the most recognized and trusted national brands including Cresco, High Supply, Mindy's Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs' national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry's largest social equity and educational development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry.

About Columbia Care Inc.

Columbia Care is one of the largest and most experienced cultivators, manufacturers and retailers of cannabis products and related services, with licences in 16 United States jurisdictions. Columbia Care operates 126 facilities including 94 dispensaries and 32 cultivation and manufacturing facilities, including those under development. Columbia Care is one of the original multistate providers of medical cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the company launched Cannabist, its new retail brand, creating a national dispensary network that leverages proprietary technology platforms. The company offers products spanning flower, edibles, oils and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press and Amber.

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