OH stock has been on an upward surge throughout the last month as Origin House’s (CSE:OH) (OTCQX:ORHOF) merger with Cresco Labs (CSE:CL) (OTCQX:CRLBF) moves closer.
OH Stock Doubles in December
Origin House, which previously traded as CannaRoyalty, announced in a press release on December 31 that its proposed merger with Cresco Labs had received the overwhelming support of shareholders, with approximately 99.66% of the votes cast in favor of the deal, easily surpassing the required two-thirds support. The $1 billion USD merger was first announced back in April of 2019, and the combined entity will be one of the largest firms in the US cannabis space. OH stock has gained nearly 60% in the last month as the deal moves closer to completion.
“Today, our shareholders have demonstrated that they are solidly behind our proposed arrangement with Cresco Labs. The combined Cresco-Origin House will be well placed to compete in the emerging cannabis industry as one of the largest vertically-integrated multi-state cannabis operators in the United States (including California and Illinois), a leading North American cannabis company by footprint, and will be one of the largest cannabis brand players in the industry,” said CEO Marc Lustig. OH shares are currently trading for $5.69.
Shareholders Await Legal Approval
While the deal was initially announced in April, amended terms were agreed upon in November, which will see holders of OH stock receive 0.7031 shares of Cresco Labs for every common share, and 70.31 shares of Cresco Labs for every Class A share. The deal is now subject to court and regulatory approval, with Origin House stating that it will apply to the Ontario Superior Court of Justice on January 6, with the deal expected to close subsequently.
Both Cresco Labs and OH stock followed a similar trend over the last 12 months. Both reached peaks in April of $17.75 and $12.98, and both sunk to year-lows in early December of $6 and $3.59 before surging throughout the final month of the decade as the deal to pair the two firms moved closer. The combined entity will offer significant upsides for both companies, providing access for Cresco to one of the world’s largest cannabis markets in California while leveraging its expertise in the Canadian market as we enter legalization 2.0.
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