You’ve no doubt heard of Cronos Group (NASDAQ:CRON). It’s the top-performing marijuana stock of all time. You’re likely familiar with Tilray (NASDAQ:TLRY) as well. It ranked as the top Canadian cannabis stock of 2018 after a sizzling initial public offering (IPO).
But there’s a company that just completed an important step toward becoming a pot powerhouse that many investors probably haven’t heard of. U.S.-based…
Cresco Labs (NASDAQOTH:CRLBF)cleared a big hurdle on Tuesday in its plan to acquire Origin House (NASDAQOTH:ORHOF). The combined revenue of Cresco and Origin House in the last quarter topped the sales of Cronos and Tilray combined.
You might not know a lot about Cresco. But with the acquisition of Origin House on track, this is one under-the-radar pot stock you should keep your eye on. Here’s why.
Thumbs-up for the big deal
Cresco announced on April 1, 2019, that it planned to buy Origin House. But it wasn’t an April Fools’ Day joke. At the time, the proposed transaction was the biggest acquisition of a public U.S. cannabis company ever. Canopy Growth‘s deal to buy Acreage Holdings announced a few weeks later bumped the Cresco-Origin House deal from the top spot.
But while Canopy Growth must wait for federal marijuana laws in the U.S. to change to go through with its acquisition of Acreage, Cresco’s effort to buy Origin House is moving along quite nicely. On Tuesday, Origin House shareholders voted to approve the proposed deal. The acquisition required a two-thirds majority. The actual vote reflected 99.56% of votes cast in favor of the acquisition.
It’s not a completely done deal just yet, though. On Monday, Origin House received a request for additional information on the proposed transaction from the U.S. Department of Justice Antitrust Division. Origin House CEO Marc Lustig said that his company and Cresco “are confident that we will be able to submit all requested documentation to the Department of Justice as soon as possible.”
The two companies also must receive Canadian approval for the acquisition since Origin House is based in Ottawa, Canada. However, it doesn’t seem likely that there will be any significant problems with regulators in either the U.S. or Canada.
Introducing the new Cresco Labs
Cresco Labs and Origin House executives refer to the combined company that should be on the way as a “North American cannabis powerhouse.” That’s not just…
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