CHICAGO & OTTAWA, Ontario, September 17, 2019 –(BUSINESS WIRE)–Cresco Labs Inc. (“Cresco Labs”) (CSE: CL) (OTCQX: CRLBF) and CannaRoyalty Corp. d/b/a Origin House (“Origin House” and together with Cresco Labs, the “Companies” – CSE: OH, OTCQX: ORHOF), both announced today that, effective September 16, 2019, they have each submitted certifications of substantial compliance with the request for additional information (“Second Request”) from the United States Department of Justice Antitrust Division (the “DOJ”) in connection with Origin House’s and Cresco Labs’ notification to U.S. antitrust authorities pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”), as amended, in respect of Cresco Labs’ pending acquisition of Origin House (the “Transaction”).
The HSR Act waiting period was extended by the issuance of the Second Requests to Cresco Labs and Origin House. That extended waiting period terminates 30 days after substantial compliance, and the parties would be free to close unless the DOJ obtains an injunction against the transaction. That waiting period is expected to expire on or around October 17, 2019. The expiration of the waiting period under the HSR Act is the last significant condition to completing the Transaction, and the parties are expecting to be in a position to close the Transaction following the expiration of the waiting period.
Upon substantially complying with the Second Request, Origin House and Cresco Labs agreed to extend the outside date to complete the Transaction to November 15, 2019.
Today’s announcement marks the crossing of yet another significant hurdle towards the completion of the Transaction. We are pleased to announce that both companies have now submitted their responses and look forward to closing the Transaction following the expiration of the applicable antitrust waiting period.
Charlie Bachtell, CEO of Cresco Labs
About Cresco Labs:
Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States. Cresco Labs is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco Labs’ house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi and Mindy’s, a line of edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside*, Cresco Labs’ national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs has launched the industry’s first national comprehensive Social Equity and Educational Development (SEED) initiative designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com.
About Origin House:
Origin House is a growing cannabis brands and distribution company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. Origin House’s California brand development platform is operated out of six licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. Origin House is actively developing infrastructure to support the proliferation of its brands internationally, initially in Canada through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the CSE under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.