Cresco Labs and Origin Residence Inch Closer to Closing Deal



Although Cresco Labs’ stock has fallen since announcing its acquisition deal with Origin House in April, the two parties are moving toward closing. This week, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) expired.

According to a Cresco press release, « the expiration of the waiting period under the HSR Act satisfies one of the remaining conditions to completing the transaction. With the waiting period passed, the parties are now working towards closing the transaction on terms that will be mutually agreeable to both parties. »

But because Cresco Labs’ stock price has fallen, the overall transaction value is falling too. « Under the terms of the agreement, holders of common shares of Origin House will receive 0.8428 subordinate voting shares of Cresco Labs for each Origin House Share, » according to the announcement in April.

Getting past the HSR Act waiting period (an antitrust regulatory oversight period) is a positive sign amidst a slower M&A season and in the wake of the similarly-sized blockbuster MedMen/PharmaCann deal falling apart.

« We look forward to working through the remaining steps required to close the transaction, » said Charlie Bachtell, CEO and Co-founder of Cresco Labs, in a public statement.

Marc Lustig, Chairman and CEO of Origin House, added: “the expiration of the HSR Act waiting period is a significant milestone for this transaction and for the entire cannabis industry.” 

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