Forbes: Mergers And Acquisitions Light Up The Cannabis Sector

Via Forbes

This past week, Cresco Labs announced what will be the largest acquisition of a public company operating in the American cannabis industry to date, agreeing to buy CannaRoyalty (dba Origin House) in an all-stock transaction valued at $825 million. Cresco Labs is a multi-state operator (MSO) based out of Chicago, and the acquisition will give them a strong position in California, where Origin House operates as a distributor, manufacturer, cultivator and branding company. Investors embraced the deal, sending the stock of Cresco Labs, which began trading in December, to an all-time high as it closed 10% higher on the week.

The Cresco Labs acquisition followed another big move four weeks ago, as Arizona-based Harvest Health & Recreation announced the $850 million pending acquisition of privately-held Verano Holdings, a Chicago-based MSO. Like the reaction to the Cresco deal, Harvest stock soared following the announcement. It’s not just the American cannabis sector seeing consolidation, as HEXO Corp recently announced the all-stock pending acquisition of Newstrike Brands. In this case as well, investors liked the deal, sending HEXO to a new all-time high.

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