CRLBF - Cresco Labs Closes Origin House Acquisition Creating a U.S. Pot Powerhouse
Cresco Labs (OTC: CRLBF), a multi-state U.S. cannabis operator, announced on Wednesday that it closed on the acquisition of Origin House (OTC: ORHOF), a deal that was first proposed in April 2019. Origin House, previously known as CannaRoyalty, is a leading distributor of cannabis products in California and markets several of its own cannabis brands.
Originally, Cresco offered to give each Origin House shareholder 0.8428 Cresco Labs shares for each Origin House share owned. But after the prices of both Cresco and Origin House fell last year in the midst of a significant overall downturn for marijuana stocks, the original transaction terms were modified to reduce the number of Cresco Labs shares received by Origin House shareholders to 0.7031 Cresco shares for each Origin House share owned. In addition, Origin House agreed to complete a non-brokered financing to sell shares to raise around $30 million to strengthen its balance sheet.
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