CannaRoyalty Corp (OTCMKTS:ORHOF) revealed towards mid-June that it was awarded a final order by the Superior Court of Justice in Ontario regarding its planned deal with Cresco Labs Inc.
The arrangement between the two companies had previously been announced in April this year. Cresco Labs will purchase all of CannaRoyalty’s outstanding and issued common shares as, well as Class A compressed shares as indicated in the agreement between the two firms.
The final order that CannaRoyalty received from the Ontario Superior Court of Justice will allow it to finalize the arrangement as long as all the closing conditions are satisfied. Among the conditions that have to be met includes receipt of the regulatory approvals required for the process.
“Receipt of the final court order is a significant step towards completing the arrangement with Cresco Labs,” stated CannaRoyalty CEO Marc Lustig.
The CEO also noted that both his company and Cresco Labs are committed to finalizing the transaction as soon as possible. This is because they have to factor in the expiration of the antitrust waiting duration. The two companies are also optimistic that the deal will generate value for the shareholders of both firms.
CannaRoyalty as one of the major players in the cannabis industry
CannaRoyalty is one of the largest cannabis firms in North America that managed to get a strong foothold in Canada and the U.S thanks to its early start in the industry. It has also been working hard to keep up with the heavy competition and also towards building up its brand. The company has cultivation, manufacturing and marketing operations that allow it to maintain its relationship with brand partners.
The company also has numerous licensed facilities that are distributed across California which is one of the biggest cannabis markets in the U.S. CannaRoyalty has also demonstrated its openness to the idea of growing its business through acquisitions. For example, it previously acquired a cannabis retailer called 180 Smoke.
CannaRoyalty also goes under the name Origin House and it is also working on expanding its brands to an international level. Its goal is to reach a broader customer base especially as more countries jump on board the legalization trend.