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    CL   CA22587M1068

CRESCO LABS INC.

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Delayed CANADIAN NATIONAL STOCK EXCHANGE  -  03:58 2022-06-30 pm EDT
3.260 CAD   -1.51%
06/21CRESCO LABS : AMENDED AND RESTATED INVESTMENT AGREEMENT - Form 6-K
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06/16CRESCO LABS : Notice of Availability of Proxy Materials for Cresco Labs Inc. Annual and Special Meeting of Shareholders - Form 6-K
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06/01Cresco Labs Announces Conference Participation for June 2022
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Exclusive: Credit Suisse stops custodian service for some U.S. cannabis stocks - sources

05/05/2021 | 09:06pm EDT
FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Zurich

(Reuters) - Credit Suisse Group AG has told customers in recent months it will no longer execute transactions in shares of cannabis companies with U.S. operations or hold them on behalf of clients, a cannabis company executive and other industry sources told Reuters on Wednesday.

The Swiss lender was among a handful of banks that had been willing to buy and sell marijuana-related stocks for clients in the United States and hold those shares as a custodian.

Credit Suisse declined to comment.

Cannabis remains illegal under U.S. federal law, even though many states have legalized its use. This represents a legal risk for investment banks working for companies that produce or trade the drug.

Credit Suisse's compliance and risk management procedures have come under scrutiny from investors and analysts after it lost at least $4.7 billion from the collapse of Archegos, an investment firm dedicated to managing the fortune of hedge fund veteran Bill Hwang, as well as the suspension of funds linked to insolvent supply chain finance company Greensill.

The MSOS exchange-traded fund, which tracks U.S. marijuana stocks, has fallen by more than a fifth since early February. Several market players said they believed Credit Suisse's actions played a role in the selloff.

"(When) Credit Suisse pulled custodian (services) on cannabis stocks, a number of large investors in the space lost their ability to custodian the stocks," said Abner Kurtin, Chief Executive Officer of newly-floated marijuana grower Ascend Wellness Holdings Inc.

"That led to a significant selloff."

A custodian bank holds customers' securities for safekeeping, to prevent them from being stolen or lost, while also collecting dividends and handling other corporate actions. It plays an important role in helping many investors to hold shares in companies.

The weed industry has boomed over the last three years, as Canada and a succession of U.S. states, including most recently New York and New Jersey, legalized recreational use.

Credit Suisse shares are down over 20% so far this year, and the bank has said it is cutting its prime brokerage business, which caters to hedge fund clients, by about a third.

(Reporting by Shariq Khan and Matt Scuffham; Writing by Patrick Graham; Editing by Howard Goller)

By Shariq Khan and Matt Scuffham


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
CREDIT SUISSE GROUP AG 0.07% 5.424 Delayed Quote.-38.86%
CRESCO LABS INC. -1.51% 3.26 Delayed Quote.-61.14%
TILRAY BRANDS, INC. 0.96% 3.15 Delayed Quote.-55.19%
TRULIEVE CANNABIS CORP. -6.21% 14.8 Delayed Quote.-55.03%
All news about CRESCO LABS INC.
06/21CRESCO LABS : AMENDED AND RESTATED INVESTMENT AGREEMENT - Form 6-K
PU
06/16CRESCO LABS : Notice of Availability of Proxy Materials for Cresco Labs Inc. Annual and Sp..
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06/01Cresco Labs Announces Conference Participation for June 2022
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05/19Piper Sandler Maintains Overweight Rating, US$9 TP on Cresco Labs
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05/18TRANSCRIPT : Cresco Labs Inc., Q1 2022 Earnings Call, May 18, 2022
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05/18Cresco Labs Announces First Quarter 2022 Results
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05/18Cresco Labs Inc. Reports Earnings Results for the First Quarter Ended March 31, 2022
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05/16Cresco Labs Announces the Expiration of the HSR Act Waiting Period for the Proposed Acq..
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05/09Cresco Labs to Report First Quarter 2022 Financial Results on May 18, 2022
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05/06Cresco Labs to Report First Quarter 2022 Financial Results on May 18, 2022
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Financials (USD)
Sales 2022 906 M - -
Net income 2022 -9,10 M - -
Net Debt 2022 384 M - -
P/E ratio 2022 -136x
Yield 2022 -
Capitalization 770 M 768 M -
EV / Sales 2022 1,27x
EV / Sales 2023 0,98x
Nbr of Employees 3 600
Free-Float 52,0%
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Mean consensus BUY
Number of Analysts 17
Last Close Price 3,26 CAD
Average target price 15,41 CAD
Spread / Average Target 373%
EPS Revisions
Managers and Directors
Charles Bachtell Chief Executive Officer & Director
Dennis Marin Olis Chief Financial Officer
Thomas Joseph Manning Executive Chairman
Ty Gent Chief Operating Officer
Randy D. Podolsky Independent Director
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