CannaRoyalty Corp OH ORHOF, which does business as Origin House, announced that its shareholders voted Tuesday to approve a plan of arrangement with Cresco Labs IncCRLBF.
Cresco Labs will acquire all of the issued and outstanding Origin House shares. It was almost unanimous, with 99.5% of CannaRoyalty shareholders voting in favor of the deal, according to the company.
"The combined Cresco-Origin House will be well-placed to compete in the emerging cannabis industry as one of the largest vertically integrated, multistate cannabis operators in the United States," including California and Illinois, Marc Lustig, CannaRoyalty's CEO and chairman, said in a statement.
"I would like to thank all of our long-term shareholders for their steadfast support and with this important vote now behind us, we look forward to proceeding with the receipt of a final court order on January 6, 2020, and proceeding with closing the Arrangement soon after receipt of the final order."
The deal is subject to customary closing conditions.
Once complete, Origin House will be delisted from the Canadian and OTC exchanges and will cease to be a reporting issuer.
CannaRoyalty Debt Update
The maturity date of the previous $27 million in debt financing from Opaskwayak Cree Nation has been prolonged from Dec. 31, 2019, to June 30, 2020, CannRoyalty said.
The company said it has entered into a binding term sheet agreement with OCN for an additional debt facility of up to $8 million, $3.5 million of which has already been advanced.
CannaRoyalty, Cresco Price Action
CannaRoyalty shares were trading down 3.09% at $4.43 at the time of publication Thursday, while Cresco shares were down 3.64% at $6.61.
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