April 1 (Reuters) - U.S. marijuana company Cresco Labs Inc said on Monday it would buy pot distributor Origin House for about C$1.1 billion ($823.29 million) as it seeks to become a leading player in California’s cannabis market.
California legalized the use of recreational marijuana last year, becoming one of the 10 U.S states to do so, prompting investors to show more interest in the budding cannabis sector.
Origin House shareholders will receive 0.8428 shares of Cresco Labs for each share, or $C12.68 per share.
With this deal, Chicago-based Cresco Labs will broaden its presence to over 725 dispensaries across United States.
Origin House delivers over 50 cannabis brands to more than 500 dispensaries in California, the companies said. ($1 = 1.3361 Canadian dollars) (Reporting By Shradha Singh in Bengaluru Editing by Saumyadeb Chakrabarty)