OTTAWA, Sept. 20, 2019 /CNW/ - 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.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Origin House's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements with respect to the terms of the Financing (including, without limitation, the use of proceeds and the maturity date), statements relating to the terms of the Arrangement (including the terms, timing, closing and conditions thereof), the expiration or termination of the applicable waiting period under applicable antitrust legislation and the effect thereof on the Origin House's and Cresco Labs' ability to close the Arrangement, the Companies' commitment to the Arrangement, the timing to consummate the Arrangement and the timing and likelihood that the conditions to the Arrangement will be satisfied), the execution of the Company's strategy, new opportunities, the Company's timing and process for expansion in Canada and globally, future growth and other forward-looking statements.
Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: investing in target companies or projects that are engaged in activities currently considered illegal under US federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindered market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; and regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward- looking statements in this news release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
SOURCE Origin House
For further information: Media: Priyam Chakraborty, Senior Communications Manager, Origin House, [email protected], 647-232-9287; Investors: Jonathan Ross, LodeRock Advisors Inc., Origin House Investor Relations, 416-283-0178, [email protected]