Cresco Labs announced this week that United States antitrust regulators are seeking additional information about its anticipated acquisition of Origin House. Pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Cresco Labs was required to notify the U.S. Department of Justice Antitrust Division (the “Division”) of the transaction and to observe a waiting period while regulators reviewed the transaction. On June 10, the Division requested additional information regarding the proposed transaction. That request extends the required waiting period up to thirty additional days from the time when Cresco Labs and Origin House supply the required information.
Cresco Labs does not believe the Division’s request will significantly impede the transaction’s closing. “We are confident that we will be able to submit all requested documentation to the Department of Justice as soon as possible and continue toward closing of the transaction,” said Cresco Labs CEO and Co-founder Charlie Bachtell.
In a sign that the transaction is otherwise moving forward as planned, Origin House’s shareholders voted this week to approve the transaction. And, Origin House received approval for the transaction from the Ontario Superior Court of Justice. Origin House Chairman and CEO Marc Lustig called the Court’s approval “a significant step forward towards completing the arrangement with Cresco Labs.”
Cresco Labs acquisition of Origin House was originally announced in April. The all-stock transaction is valued at over $800 million, which would make it the “largest public company acquisition in the history of the U.S. cannabis industry.”