Medical marijuana company Cresco Labs is moving forward with a plan to go public in Canada, a step that will give it access to additional funds to grow its business in Illinois and nationwide.
Cresco announced Wednesday that it entered into a reverse takeover agreement with Randsburg International Gold Corp. that will result in a merger with the company. In reverse takeovers, private companies go public by buying enough shares in a public company to control it. The shareholders exchange their holdings for shares in the public company.
The deal with Randsburg, a Vancouver-based metals and mining company, is subject to regulatory and shareholder approvals and other conditions.
It is expected to be completed before the end of the year. Chicago-based Cresco will become the second Illinois-based cannabis company to go public on the Canadian Securities Exchange through a reverse takeover of a shell company.