Origin House (fka ORHOF)

[xgin]

Motley Fool https://www.fool.com/investing/2019/04/07/the-5-largest-marijuana-deals-in-history.aspx
5. Cresco Labs acquires Origin House: $823 million

Last, but certainly not least, earlier this week we received word that vertically integrated multistate operator Cresco Labs (NASDAQOTH:CRLBF) would be purchasing Origin House (NASDAQOTH:ORHOF) for CA$1.1 billion, or about $823 million. As with pretty much all deals of this magnitude, Origin House shareholders are set to receive shares of Cresco Labs, meaning the final value of this transaction could change significantly, depending on how Cresco Labs' stock performs in the weeks and months ahead.

Although Cresco Labs is primarily focused on selling, growing, and processing cannabis in the U.S., the acquisition of Origin House will give it something unique: distribution power. Origin House has been busy acquiring marijuana distributors in California in an effort to secure its place as a vital industry middleman. Only a handful of distribution licenses will be handed out in the Golden State, which makes distribution an especially lucrative niche in the largest legal market in the world.

Assuming completion of the deal, Cresco Labs will have a presence in 11 states, sport more than 1.5 million square feet of cultivation space, and have licenses to operate up to 51 retail locations. But what's most important is that Origin House's distribution partnerships will allow it to get its branded products into more than 500 California dispensaries, and over 725 dispensaries across the country.

It's unclear whether Origin House shareholders will vote for the combination, but for the time being, it would slot in at the fifth-largest deal ever announced, and the largest in the U.S. among two publicly traded companies