The acquisition of Origin House (CSE: OH) by Cresco Labs (CSE CL) has finally closed as of this morning. The transaction gives Cresco significant access into one of the world’s largest cannabis markets via Origin House’s dominant position within the state of California.
While it took longer than anticipated to arrive at this point, the closing of the deal has finally been completed. Origin House’s shares as a result are expected to be delisted from the Canadian Securities Exchange as of the close of trading on January 9, 2020.
In consideration for all 94,558,120 common shares of Origin House, Cresco Labs issued a total of 66,483,798 common shares, which equates to a 0.7031 exchange ratio. The total transaction was valued at C$516.5 million based on yesterdays closing price for Cresco Labs. This figure does not include the additional 3.6 million Origin House shares issued upon closing of the transaction, or the 9.7 million released in connection with the $39.7 million in subscription receipts issued related to a November 2019 financing. These shares were subsequently exchanged for Cresco Labs common shares at the same exchange ratio.
Former chairman and CEO of Origin House, Mark Lustig, is to be appointed to the Cresco board of directors following regulatory approvals.
Origin House is a leading wholesale distributor of cannabis products in the state of California, with the firm pushing products to approximately 65% of retail cannabis storefronts within the state.
Cresco Labs last traded at $7.52 on the CSE.
Information for this briefing was found via Sedar, Cresco Labs and Origin House. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
