While recreational marijuana remains illegal at the federal level in the United States, that hasn’t stopped US companies from getting involved in the cannabis industry at home and abroad.
Chicago-based Cresco Labs is one such company, which operates in six states and offers a suite of consistently dosed products including flower, edibles, vape pens/cartridges, and extracts under the brand names Cresco, Remedi, Reserve, and Mindy’s Edibles.
While based in Illinois, Cresco Labs just announced plans to go public on the Canadian Securities Exchange (CSE) via a reverse takeover of Randsburg International Gold — an Ontario-based firm currently listed on the CSE.
“The Canadian market has been very supportive of U.S.-based cannabis companies, and we look forward to having expanded access to capital that will help us accelerate our strategic growth plan,” said Cresco Labs Chief Executive Officer Charles Bachtell.
He went on to say, “We believe Cresco Labs has a compelling investment story for institutional and retail investors looking to participate in the dynamic growth of the cannabis industry.”
The deal is subject to approval by shareholders and the CSE and is expected to close by the end of November.
The move from Cresco Labs to go public north of the border is just the latest in a string of cannabis companies transitioning to international operations in the ramp up towards full recreational legalization in Canada.
Most recently, Canadian company Aurora Cannabis (TSE: ACB) filed an application to list its common shares on the New York Stock Exchange in addition to its current spot on the Toronto Stock Exchange.
Recreational marijuana officially becomes legal across Canada on Wednesday, Oct. 17 after the passage of the Cannabis Act.
Numerous startups jumped into the industry after the Cannabis Act passed this summer, although approval for legal storefronts remains low with only a handful of days remaining before legalization.
A recent study from the C.D. Howe Institute indicated the legal market preparing to open for business on Oct. 17 will only meet between 30 to 60% of demand in the coming months. The federal government has pushed back on those estimations, however, stating storefronts will be able to meet the full customer demand on day 1.