Mr. Charlie Bachtell reports

CRESCO LABS ESTABLISHES AT-THE-MARKET OFFERING

Cresco Labs Inc. has entered into an equity distribution agreement with Haywood Securities Inc. pursuant to which the company may, from time to time, sell up to approximately $100-million (U.S.) ($140-million) of subordinate voting shares in the capital of the company. The company intends to use the net proceeds of the ATM program, if any, principally for general corporate purposes, including potential future acquisitions.

"Establishing this ATM program provides us with another flexible tool to support our strategic objectives as the industry continues to mature and federal reform progresses. Consistent with our approach, we remain focused on disciplined capital allocation and driving long-term, risk-adjusted value for our shareholders. Use of the program would be considered opportunistically, with a focus on market conditions, our equity valuation and the ability to deploy capital into accretive opportunities that enhance profitability and strengthen our balance sheet," said Charlie Bachtell, chief executive officer of Cresco Labs.

Since the subordinate voting shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the company's management and in accordance with the terms of the equity distribution agreement. To date, no subordinate voting shares have been distributed by the company pursuant to the equity distribution agreement.

Sales of subordinate voting shares, if any, under the ATM program are anticipated to be made in transactions that are deemed to be at-the-market distributions as defined in National Instrument 44-102 -- Shelf Distributions, as sales made directly on the Canadian Securities Exchange or any other recognized Canadian marketplace within the meaning of National Instrument 21-101 -- Marketplace Operation. The ATM program is being made pursuant to a prospectus supplement dated Jan. 29, 2026, to the company's short form base shelf prospectus dated Oct. 3, 2025, filed with the securities regulatory authorities in each of the provinces of Canada.

The prospectus supplement (together with the related base shelf prospectus) and a copy of the equity distribution agreement are available at the company's profile on the SEDAR+ website maintained by the Canadian Securities Administrators.

An electronic or paper copy of the base shelf prospectus, the prospectus supplement and the equity distribution agreement, and any amendment to the documents, may also be obtained without charge, upon request only, directly from Haywood by e-mail at ECM@Haywood.com. The base shelf prospectus and prospectus supplement contain important, detailed information about the company and the ATM program. Prospective investors should read the base shelf prospectus and prospectus supplement before making an investment decision.

About Cresco Labs Inc.

Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG (consumer packaged goods) approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi on a national level. The company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, work force development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible.

We seek Safe Harbor.