Cresco Labs and Origin House Announce Substantial Compliance with HSR Second Request
Cresco Labs Inc. ("Cresco Labs") (CSE: CL) (OTCQX: CRLBF) and CannaRoyalty Corp. d/b/a Origin House ("Origin House" and together with Cresco Labs, the "Companies" - CSE: OH, OTCQX: ORHOF), both announced today that, effective September 16, 2019, they have each submitted certifications of substantial compliance with the request for additional information ("Second Request") from the United States Department of Justice Antitrust Division (the "DOJ") in connection with Origin House's and Cresco Labs' notification to U.S. antitrust authorities pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act"), as amended, in respect of Cresco Labs' pending acquisition of Origin House (the "Transaction").
Authorities Offer Pardons to Persons Affected by Previous Instances of Cannabis Prohibition
Last year, Canada made international headlines after becoming just the second country, following Uruguay, to fully legalize cannabis for both medical and recreational purposes. However, despite legalizing cannabis, Canada still faces a multitude of legal barriers that have hindered consumers and businesses. For instance, many cultivators and retailers faced limitations such as curtailed operating hours and limited licensing agreements. However, many public officials and consumers have now begun to voice their concerns regarding the criminal justice system. Many regions that are moving towards cannabis legalization build a foundation of expunging previous cannabis criminal convictions. And following the legalization of cannabis in Canada, the federal government allowed convicted cannabis offenders to apply for a pardon. In 2016, it was reported that 58% of police-reported Controlled Drugs and Substances Act offenses were cannabis-related. Additionally, according to a piece of open-source information on Canada's politicians, approximately 250,000 Canadians are eligible for a pardon. However, after a month of accepting pardon applications, the Canadian federal government has only approved 44 pardons out of the 71 applicants. And while the legal cannabis market is projected to accelerate, the concern over the justice system has only brought forth new questions. According to data compiled by Imarc Group, the North American legal cannabis market is expected to reach USD 35 Billion by 2023 from USD 8 Billion in 2017. Additionally, the market is expected to register a healthy CAGR of 28% throughout the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Cresco Labs Inc. (OTC: CRLBF) (CSE: CL), Acreage Holdings Inc. (OTC: ACRGF)
Cresco Labs to Acquire Tryke Including the Reef Dispensary Portfolio - Consistent With Stated Plan to Establish Market Leading Positions in Both Nevada and Arizona and Build Brand and Wholesale Capabilities
Cresco Labs Inc. ("Cresco Labs" or the "Company") (CSE: CL) (OTCQX: CRLBF), one of the largest vertically integrated multistate cannabis operators in the United States, today announced a significant expansion of its presence in Nevada and Arizona through the signing of a purchase agreement to acquire certain assets (the "Transaction") from Tryke Companies, LLC ("Tryke"), a vertically integrated seed-to-sale cannabis company, including six prime Reef Dispensary locations in Nevada and Arizona, expanded licensed cultivation and process capacity in Las Vegas and Phoenix and entry into the Utah market.