Cresco to grant restricted stock to employees to boost motivation

Cresco has resolved to dispose of 35,640 treasury shares as restricted stock compensation for its employees and those of its subsidiaries. This initiative, termed the "System," aims to boost motivation, foster sustainable growth, and enhance shareholder value within the Cresco Group. The disposal, valued at JPY 53,994,600 in total, will occur on December 12, 2025, with shares priced at JPY 1,515 each. A total of 54 employees—32 from Cresco and 22 from subsidiaries—will receive the shares.

The restricted stock will be subject to a transfer restriction period from December 12, 2025, to December 4, 2028. During this period, employees cannot transfer or encumber the shares, which will be managed in dedicated accounts at Nomura Securities. Restrictions will be lifted upon maintaining employment throughout the period, with provisions for earlier removal under specific conditions like retirement or transfer deemed justifiable by the board of directors.

The disposal price of JPY 1,515 per share was determined by the closing price of Cresco's common stock on the Prime Market of the Tokyo Stock Exchange on November 14, 2025, the business day preceding the board of directors’ resolution. This valuation is considered reasonable and not advantageous to any specific party, reflecting market conditions directly before the decision.