Cresco Labs Closes On 'Transformational' Origin House Acquisition
Vertically integrated cannabis company Cresco Labs Inc. (CSE:CL) (OTC:CRLBF) said Wednesday that it it has completed its recently announced acquisition of CannaRoyalty Corp (OTC:ORHOF), doing business as Origin House.
The deal notably increases Cresco’s footprint and hastens its entry into the California market, the company said.
“This is a transformational deal for Cresco and represents the culmination of the better part of a year’s work for both the Cresco and Origin House teams,” Charlie Bachtell, Cresco’s CEO and co-founder, said in a statement.
Under the agreement, Cresco will add Origin House CEO and Chairman Marc Lustig, to its board of directors. Holders of Origin House common shares will attain 0.7031 subordinate voting shares of Cresco for each Origin House common share held, while holders of class A compressed shares of Origin House will obtain 70.31 Cresco shares for each compressed share.
In total, Cresco obtained 94.56 million Origin House common shares in exchange for 66.48 million Cresco shares.
It is expected that the Origin House common shares will be removed from the Canadian Securities Exchange at the close Thursday.
“Speaking as one of the largest former shareholders of Origin House and now an enthusiastic and significant Cresco shareholder, I am looking forward to the opportunity for this combined team to create value for all of our shareholders,” Lustig said in a statement.
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Bhang, Origin House Jointly Abort License Agreement
A previously announced exclusive California license agreement between Bhang and Kaya is terminated, with Bhang walking away with royalty payments, manufacturing equipment, input materials, Bhang-branded completed goods and Origin House shares that are worth around $1.1 million.
Both companies agreed to a mutual release of claims coming from the license agreement.
Cresco shares were down 2.26% at $5.83 at the time of publication, while Bhang shares were plunging 13.04% to 10 cents.
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