Randsburg International Gold Corp. (NEX: RGZ.H) announced this week that the company has entered into a binding letter agreement with cannabis company Cresco Labs, LLC. to complete a reverse takeover of Randsburg effectively making Cresco Labs a public Canadian company. Cresco Labs shares will soon be listed on the Canadian Securities Exchange (CSE).
Cresco Labs, LLC. is located in Chicago, Illinois and currently has operations located in six different U.S. states. The company provides a variety of different product offerings including flower, edibles, vape pens, and a number of different extracts. Cresco owns the cannabis brand named Cresco, Remedi, Reserve and Mindy’s Edibles. Their brands are focused on building an integrated product line, from
seed to sale, which is directed on educating
consumers about the health benefits associated with the cannabis plant.
Cresco has also announced that their company had conducted a private placement in Canada of Class F units for gross proceeds of US$100 million. During the reverse takeover Randsburg will be required to do the following:
- Change its name to Cresco Labs Inc. or such other name acceptable to applicable regulatory authorities
- Consolidate its outstanding common shares such that the shareholders of the Company retain an aggregate of C$2.2 million in Resulting Issuer Shares
- Replace all directors and officers of the Company on closing of the Proposed Transaction with nominees of Cresco
- Create a new class of non-participating super voting shares that would be issued to certain principals of Cresco under the Proposed Transaction
“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. 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,” said Cresco Labs Chief Executive Officer Charles Bachtell in the press release.