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).
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.
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.