Due to the overall slowdown in the cannabis space, some companies had put off construction projects, but Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) is one of the exceptions in this regard. This past Friday it emerged that the company has completed the expansion of its facility located in Brookville in Pennsylvania.
It is a major development for Cresco Labs considering the fact that the company will be able to cultivate marijuana and also produce associate products at the facility. Prior to the expansion, the facility only had 22000 square feet of cultivation space but now it stands at as much as 88000 square feet.
However, that is not all. It is important to keep in mind that the company has also made an effort to make the facility an effective manufacturing hub. Cresco has installed both integrated safety systems and new extraction booths in order to boost the manufacturing process. The facility has been earmarked by Cresco to produce marijuana and related products for the entirety of the Pennsylvania market. Investors ought to keep an eye on the development with regards to Cresco, since the expansion could chart a new course for the company.
While this is one of the major recent developments at Cresco, it needs to be remembered that the company had also released its financial results for the fourth quarter of 2019 back in April. The revenues for the period in question were $41.4 million, which reflected a year on year rise of 144% and a sequential rise of 14%. However, the company’s losses in the fourth quarter widened as much as 10 times year on year to hit $45.2 million.
The company did not provide a figure with regards to loss per share, but if the total outstanding shares count is taken into consideration then the loss per share could be around $0.15 per share. While the revenues recorded a considerable jump year on year, it should be noted that Cresco Labs fell short of analysts’ estimates of as much as $49.8 million for the quarter.