Origin House Announces Additional C$15 Million Tranche of Debt Financing from Opaskwayak Cree Nation
Ottawa, Canada – September 20, 2019 – CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) (“Origin House” or the “Company”), a North American cannabis products and brands company, announced that it has received a further C$15 million advance of debt financing (the “Financing”) from Opaskwayak Cree Nation (“OCN”).
Marc Lustig, Chairman and CEO of Origin House commented, “We appreciate the continued support of OCN. This non-dilutive funding enables us to maintain our focus on our California growth plans while simultaneously preparing for the closing of the acquisition by Cresco Labs, upon receipt of regulatory approvals.”
In addition to the previously disclosed funding from OCN totalling C$12 million, the proceeds from this Financing are expected to be used by Origin House for the construction and expansion of its premium craft cannabis production facilities in Sonoma County – Cub City and FloraCal, for costs related to closing of the previously announced plan of arrangement (the “Arrangement”) with Cresco Labs Inc. (“Cresco Labs”), and for general corporate purposes. The Financing is subject to a 7.5% commitment fee, bears interest at a rate of 10% per annum on the amount advanced and matures on December 31, 2019.
As disclosed on September 17, 2019, Cresco and the Company announced substantial compliance with the request for additional information from the United States Department of Justice Antitrust Division, in connection with the Arrangement. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”), as amended, waiting period was extended by the issuance of the Second Requests to Cresco Labs and Origin House. That extended waiting period terminates 30 days after substantial compliance, and the parties would be free to close unless the DOJ obtains an injunction against the transaction. That waiting period is expected to expire on or around October 17, 2019. The expiration of the waiting period under the HSR Act, is the last significant condition to completing the Arrangement, and the parties are expecting to be in a position to close the Arrangement following the expiration of the waiting period.
About Origin House
Origin House is a growing cannabis brands and distribution company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. Origin House’s brand development platform is operated out of six licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. Origin House is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the CSE under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
For further inquiries, please contact:
Senior Communications Manager, Origin House
LodeRock Advisors Inc., Origin House Investor Relations