While the company seeks regulatory approval to begin operations in Michigan, Cresco Labs Inc. (CSE: CL; OTCQX: CRLBF) is now making a major push into the California cannabis market through one of the largest acquisitions in the history of the industry. 

Cresco today announced an agreement to acquire all outstanding shares of CannaRoyalty Corp. DBA Origin House (CSE: OH; OTCQX: ORHOF) at a cost of $12.68 per share for a total value of $1.1 billion.  

The move will effectively make Cresco one of the largest players in the California market, with access to dozens of brands distributed to 500+ dispensaries in the state through Origin House’s network. Upon completion of the deal, Cresco brands will be found in more than 700 dispensaries nationwide.

The acquisition has been unanimously approved by the boards of both companies, but still requires majority Origin House shareholder approval at a special meeting to be held in June. 

Current shareholders will receive 0.8428 shares of Cresco for every share of Origin House held. CEO Marc Lustig stated that Origin House has received multiple acquisition offers, but expected Cresco’s to make the most value long term for the combined companies. 

Discussing the potential to become one of the leading multi-state U.S. operators through the deal, Cresco’s Chief Executive Officer Charlie Bachtell stated: 

The team at Origin House has established the premier cannabis distribution company in the largest cannabis market in the world. It’s an incredible platform for Cresco in California and the distribution infrastructure will provide a valuable framework to leverage as we scale our platforms in other states.

The two companies will host a conference call and webcast for investors tomorrow – April 2 – to discuss the terms of the deal. 

Cresco Labs has initiated a series of acquisitions and deals in recent months, culminating in the company making the jump from trading on the OTC Pink market to the OTCQX market in March. 

In addition to the major footprint Cresco will have in California if the Origin House deal is approved, the company has made inroads in Florida and Michigan.  

Last month, Cresco signed an agreement to acquire Florida-based medical marijuana VidaCann, while pre-approval status was just granted for Cresco to begin constructing a 100,000 sq. ft. cultivation facility in Michigan.