Cannabis IPO Watch CA and US

[JohnCM]

Marijuana firm Cresco Labs charts plan to go public in Canada

October 12, 2018

Multistate cannabis operator Cresco Labs is looking to go public in Canada via a reverse takeover (RTO), the latest U.S. firm to use this path to a listing on the Canadian Securities Exchange (CSE).

The firm announced Wednesday that it’s pursuing an RTO of Randsburg International Gold (RGZ.H), an Ontario-based firm that has no significant operations but is listed on the CSE.

The deal, which is subject to shareholder and CSE approval, is expected to close by mid-November, according to a press release.

RTOs, which often include a takeover of a public shell company, has become the go-to path for U.S. cannabis firms looking to tap into Canada’s public markets.

Los Angeles-based MedMen and Chicago-based Green Thumb Industries completed RTOs in Canada earlier this year.

A slew of other companies also have announced RTO plans including:

Colorado’s MJardin

Oakland-based Harborside

LivWell Enlightened Health of Denver

4Front Holdings of Phoenix

Cresco Labs’ pursuit to go public follows its recently closed $100 million funding round – the second-largest deal inked in the U.S. marijuana industry to date, behind only New York-based Acreage Holdings’ $119 million raise in July.

Launched three years ago in Illinois, Cresco Labs also has operations in Arizona, California, Nevada, Ohio and Pennsylvania.