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Origin House issued an update to shareholders on its pending acquisition transaction with Cresco Labs and a financing deal replacement.
Origin House (CSE:OH,OTCQX:ORHOF) issued an update to shareholders on its pending acquisition transaction with Cresco Labs (CSE:CL,OTCQX:CRLBF) and a financing deal replacement.
As quoted in the press release:
Update on U.S. Antitrust Review
As recently disclosed, in connection with the previously announced plan of arrangement pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Origin House (the “Arrangement“), the Company and Cresco Labs received requests for additional information (“Second Requests“) from the United States Department of Justice Antitrust Division (the “DOJ“) pursuant to the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Act“). The issuance of Second Requests is a statutory tool used by the DOJ to investigate pending transactions.
Replacement of C$12 Million Debt Facility
The Company announced that it has entered into a binding term sheet agreement (the “Term Sheet“) with Opaskwayak Cree Nation (“OCN“) for a C$12 million debt financing (the “Financing“). Proceeds from the Financing are expected to be used by Origin House for the construction and expansion of its premium craft cannabis production facilities in Sonoma County – Cub City and FloraCal, for costs related to closing of the Arrangement, and for general corporate purposes. The Financing replaces the Company’s previously announced $12 million debt facility with a subsidiary of Sprott Inc. (“Sprott“), which has now been terminated.
