Cresco Labs (CSE:CL,OTCQX:CRLBF) confirmed on Tuesday (October 22) that the waiting period under the Hart-Scott-Rodino Antitrust Improvements (HSR) Act has expired on its planned acquisition of Origin House (CSE:OH,OTCQX:ORHOF).
The expiration of the waiting period satisfies one of the conditions necessary to complete the deal, bringing the Illinois-based multi-state operator that much closer to closing the C$1.1 billion acquisition.
It was originally agreed upon in April of this year, and Cresco Labs said at the time that it was the largest public company transaction in the history of the US cannabis space.
Cresco Labs told investors on Tuesday that the two firms are now working on closing the deal with new terms they can both agree on.
Marc Lustig, CEO of Ontario-based Origin House, called the expiration of the review period an important development for the deal itself and the cannabis industry at large.
The HSR expiration follows the submission of certifications of substantial compliance to the antitrust division of the US Department of Justice (DOJ). The certifications were sent in September from both companies after the HSR waiting period was extended when second requests were made to the firms.
The federal agency steps in with these reviews to make sure mergers, acquisitions and transfers of securities and assets don’t create industry monopolies.
Now that the waiting period is over, Cresco Labs is free to close the deal, barring an injunction issued against the transaction by the DOJ. The two companies have until November 15 to complete it.
The deal will further Cresco Labs’ stake in California through Origin House’s distribution network and presence in the state.
During an earnings call in August, Cresco Labs CEO Charlie Bachtell said scrutiny from the DOJ is beneficial to the sector overall. “The fact that a federal agency is reviewing (a mergers and acquisitions) transaction in this industry must be seen as validation,” he said.
Other large cannabis deal under review in the US
Cresco Labs’ proposed deal isn’t the only large-scale cannabis acquisition currently under review by the federal agency in the US.
At a recent Canaccord Genuity investor event, Curaleaf Chairman Boris Jordan said the DOJ has been cooperative during the review process and suggested that the federal agency is using the time to “get an education on the sector.”
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
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Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).