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- Cresco Labs has agreed to buy Origin House in an approximately $825 million deal.
- The deal would be the largest public acquisition in the US cannabis industry to date, according to the company.
- Nearly $1 billion deals are becoming commonplace in the US cannabis industry as companies chase down what’s set to be a $75 billion market.
The marijuana retail chain Cresco Labs has agreed to buy marijuana retailer Origin House in an approximately $825 million deal.
The deal would be the largest public acquisition in the US cannabis industry to date, according to the company. The transaction is expected to close in June.
"Following the closing of this acquisition, Cresco brands will be in over 725 dispensaries across the country, giving us the largest and most strategic distribution footprint of any cannabis company in the United States," Cresco Lab’s CEO Charlie Bachtell said in a statement.
Based on the terms of the deal, Origin House shareholders will each receive 0.8428 subordinate voting shares of Cresco Labs.
Cresco went public on the Canadian Securities Exchange (CSE) in December of last year. The deal marks the Chicago-based company’s push into the California market, where Origin House, formerly CannaRoyalty Corp, has a presence in more than 500 dispensaries.
Nearly $1 billion buyouts have become commonplace in the US cannabis industry, as companies compete for scale in an industry that some Wall Street analysts say could be a $75 billion market as more states open their doors to commercialized pot.
In March, Harvest Health & Recreation announced its intent to acquire Chicago-based Verano Holdings in an approximately $850 million all-stock transaction.
IAnthus, a New York-based marijuana company, acquired MPX Bioceutical in a $640 million deal in October of last year. And MedMen, a California cannabis chain, acquired PharmaCann in a $682 million all-stock transaction in October as well.
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