Mr. Charlie Bachtell reports

CRESCO LABS ACQUIRES NINE PENNSYLVANIA DISPENSARIES IN ACCRETIVE TRANSACTION TO STRENGTHEN MARKET LEADERSHIP

Cresco Labs Inc. has closed its acquisition of 100 per cent of the outstanding equity interests in PharmaCann Penn LLC for an aggregate consideration of $50-million (U.S.). The transaction consists of nine operational retail medical marijuana dispensaries in Pennsylvania, advancing Cresco's leadership position in the second-largest medical marijuana market, which generated more than $1.1-billion (U.S.) in annual sales last year.

"We are focused on deploying capital into opportunities that strengthen our competitive position and generate attractive long-term returns. This transaction expands our retail footprint in a core market through a highly strategic acquisition while creating additional opportunities to leverage our existing infrastructure," said Charlie Bachtell, chief executive officer of Cresco Labs. "Pennsylvania is one of our core markets, where scale and vertical integration create durable competitive advantages. Pairing more retail doors with our scaled cultivation and leading wholesale business reinforces our position as the consolidator of choice in the markets that matter most."

Following closing, Cresco will be the No. 1 retailer providing medical marijuana to patients across the state. Together with its position as Pennsylvania's No. 1 wholesaler, Cresco is uniquely positioned to leverage its scale and brand strength across the market. The transaction is expected to be immediately accretive to revenue, margins and cash flow.

Transaction details

The consideration amount for the transaction is $50-million (U.S.), satisfied through the payment of cash and seller note. The transaction was completed on a cash-free, debt-free basis with a mutually agreed-upon normalized target level of working capital. This news release constitutes a designated news release for the purposes of the company's prospectus supplement dated Jan. 29, 2026, to its short-form base shelf prospectus dated Oct. 3, 2025.

About Cresco Labs Inc.

Cresco Labs' mission is to normalize and professionalize the medical marijuana 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, including 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 continuing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED (social equity and educational development) 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 medical marijuana industry possible.

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