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Cresco Labs Provides Update on Origin House Acquisition
CHICAGO, June 11, 2019 — (Business Wire) — Cresco Labs Inc. (“Cresco Labs” or the “Company”) (CSE: CL) (OTCQX: CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, today provided an update on its acquisition (the “Transaction”) of CannaRoyalty Corp. d/b/a Origin House (“Origin House” – CSE: OH, OTCQX: ORHOF).
Under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act”), Cresco Labs is required to file a notification to U.S. antitrust authorities and observe a waiting period before completing the Transaction. On June 10, 2019, pursuant to the HSR Act, the Company received a request for additional information (the “Second Request”) from the United States Department of Justice Antitrust Division (the “Department of Justice”). The Second Request extends the HSR Act waiting period for up to 30 days after Cresco Labs and Origin House have each substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the Department of Justice.
Consistent with other pending transactions in the cannabis industry, we have received a request for additional information from the Department of Justice regarding our acquisition of Origin House. We are confident that we will be able to submit all requested documentation to the Department of Justice as soon as possible and continue toward closing of the transaction.
Cresco Labs CEO and Co-founder Charlie Bachtell
As announced today, Origin House’s shareholders overwhelmingly approved the acquisition. We look forward to combining our two companies and delivering on the significant opportunities we have to create shareholder value in the coming years.
Completion of the Transaction remains subject to the expiration or termination of the HSR Act waiting period and other customary conditions of closing. Assuming that the conditions to closing are satisfied or waived, it is now expected that the Transaction will be completed in the coming months.
About Cresco Labs:
Cresco Labs, based in Chicago, is a leading U.S. cannabis company with experienced management, access to capital and a demonstrated growth strategy. As a differentiated grower, processor and retailer of premium cannabis operating across the United States, the company focuses on entering highly regulated markets with outsized demand potential and strong regulatory structures. Its impressive speed-to-market gives Cresco a distinct competitive advantage as it replicates its model to expand its national footprint. Cresco’s proven ability to execute is complemented by a cutting-edge brand strategy spearheaded by several of the brightest minds in consumer marketing in the nation. Cresco’s products are tailored to all major consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and chef inspired edibles by James Beard Award-winning pastry chef Mindy Segal. Learn more about Cresco Labs at www.crescolabs.com.
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