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TORONTO, Nov. 26, 2019 /CNW/ - CannaRoyalty. d/b/a Origin House ("Origin House" – CSE: OH, OTCQX: ORHOF) is pleased to announce that it has closed its previously announced non-brokered financing (the "Financing"). In connection with the Financing, Origin House issued approximately 9,800,000 common shares of Origin House ("Common Shares") at a price of C$4.08 per Common Share for aggregate net proceeds of approximately C$39,600,000.
The Financing was fully subscribed, and substantially all of the proceeds are being held in escrow pending closing of the previously announced plan of arrangement (the "Arrangement") transaction pursuant to which Cresco Labs Inc. will acquire all of the issued and outstanding shares of Origin House in an all-stock transaction, as amended on November 13, 2019. The completion of the Financing satisfies one of the remaining conditions to closing the Arrangement. The remaining $274,380 of the proceeds have been paid directly (the "Direct Subscription") to Origin House. The Common Shares issued in connection with the Direct Subscription are subject to a four month and one day statutory hold period. The Company expects to pay approximately $340,000 in finders fees in connection with the Financing.
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
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Origin House's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Origin House's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential' or 'continue' or the negative of those forms or other comparable terms. Forward-looking statements include, without limitation, statements relating to the closing of the Arrangement and release of funds to Origin House.
Forward-looking statements contained herein involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under "Risk Factors" in each of the Company's periodic disclosure filed on SEDAR; and other factors, many of which are beyond the control of the Companies, including, but not limited to: regulatory approvals; 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; hindering 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, readers should not place undue reliance on the any forward-looking statement contained herein; the results or events predicted in the forward-looking statements may differ materially from actual results or events. No assurances are given as to the future trading price or trading volumes, nor as to financial performance in future financial periods. Except as required by applicable law, neither Company intends to update any of these factors or to publicly announce the result of any revisions to any of forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of either Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.
SOURCE Origin House
For further information: General: [email protected], 1-844-556-5070; Investors: Jonathan Ross, CFA, LodeRock Advisors Inc., [email protected], 416-283-0178; Media: Priyam Chakraborty, Senior Communications Manager, Origin House, [email protected], 647-232-9287