Multistate cannabis operator Cresco Labs is looking to go public in Canada via a reverse takeover (RTO), the latest U.S. firm to use this path to a listing on the Canadian Securities Exchange (CSE).
Cresco announced Wednesday that it’s pursuing an RTO of Randsburg International Gold, an Ontario-based firm that has no significant operations but is listed on the Canadian Securities Exchange (CSE) as RGZ.H.
The deal, which is subject to shareholder and CSE approval, is expected to close by mid-November, according to a news release.
RTOs, which often include a takeover of a public shell company, has become the go-to path for U.S. cannabis firms looking to tap into Canada’s public markets.
Los Angeles-based MedMen and Chicago-based Green Thumb Industries completed RTOs in Canada earlier this year.
A slew of other companies also have announced RTO plans, including:
- Colorado’s MJardin
- Oakland, California-based Harborside
- LivWell Enlightened Health of Denver
- 4Front Holdings of Phoenix
Cresco Labs’ pursuit to go public follows its recently closed $100 million funding round – the second-largest deal inked in the U.S. marijuana industry to date, behind only New York-based Acreage Holdings’ $119 million raise in July.
Launched three years ago in Illinois, Cresco Labs also has operations in Arizona, California, Nevada, Ohio and Pennsylvania.
