Canopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the U.S.-based pot company.
A source familiar with the negotiations confirmed Wednesday afternoon that a Canopy Growth CGC, +2.81% WEED, +2.81% deal with Acreage ACRGF, +9.14% was “98% done,” though the final price was still being worked out. Acreage had a market cap of $2.45 billion as of Wednesday’s close, but the deal will be worth “several billions” in Canadian dollars, the source said.
Canada’s Canopy Growth is close to a deal to acquire New York-based marijuana multistate operator Acreage Holdings, multiple sources, including CNBC and Bloomberg, reported Wednesday.
If true, it would be the first cross-border deal involving a Canadian marijuana licensed company buying a non-hemp U.S. multistate operator.
Given that the U.S. marijuana market could dwarf Canada's, perhaps it's no surprise that the most aggressive acquisition and merger activity can be seen among vertically integrated cannabis dispensary operators. By vertically integrated, I mean a company that completely controls its supply chain, including growing and processing marijuana within the state(s) that it's also retailing the product. Since cannabis can't be transported across state lines, per federal law, this vertical integration is a means of keeping costs down while controlling production quality.
American CHM Investments Inc. has signed a letter of intent to partner with Applied Cannabis Sciences of New Jersey, which expects to apply for a medical retail dispensary license in 2020.
American CHM Investments Inc. is the wholly-owned subsidiary of Vancouver-based Chemistree Technology Inc., a publicly traded cannabis firm on the Canadian stock exchange.
An Arizona-based vertically integrated cannabis company is bringing its $500 million war chest and rolling up marijuana dispensaries and grow/manufacture operations on the East Coast with an agreement to acquire a local company with marijuana licenses in Delaware, Maryland, New Jersey and Pennsylvania.
Last week, the New Jersey marijuana vote fell through, and legislators punted until the end of the year. But despite the negative outcome, we're still encouraged by what we saw.
The defeat was a significant blow to legalization advocates who hoped to put the Garden State at the forefront of the nation's legalization efforts – and create huge profits in the process.
Origin House (NASDAQOTH:ORHOF) and MariMed (NASDAQOTH:MRMD) rank as two of the hottest marijuana stocks on the market. Over the last 12 months, both stocks have come close to tripling.
So far in 2019, Origin House has emerged as the bigger winner by far. But which of these stocks is the better pick now? Here's how Origin House and MariMed stack up against each other.
As you might expect, several marijuana stocks with operations in New Jersey felt the sting of the delayed vote on legalizing recreational pot. Most of these stocks with New Jersey connections have flown under the radar for many investors, though.
Shares of Curaleaf Holdings (NASDAQOTH:CURLF) sank 5% on Monday. Curaleaf operates only one dispensary in New Jersey, however. Some of the stock's pullback could have been related to profit-taking after Curaleaf soared last week on news that giant pharmacy retailer CVS Health was selling its hemp-based cannabidiol (CBD) products.
Cannabis stocks were mostly higher Tuesday, as investors digested Tilray Inc.’s earnings and the latest moves by New Jersey and Pennsylvania to pave the way toward legalization.
Tilray TLRY, -2.88% said late Monday quarterly sales grew to $15.5 million, up from $5.1 million in the year-ago period, topping the $14.1 million FactSet consensus. Tilray said the average net selling price per gram of pot increased to $7.52 from $7.13 in the year-ago quarter.
One company that has proactively anticipated this market is Choom Holdings Inc. (CHOOF[OTCQB] - $0.51 0.017 (3.21%) ) (CHOO:CNX[CNQ] - $0.69 0. (0.00%) ). This Canadian elevated dispensary company recently closed a deal with an unnamed New Jersey medical dispensary. Choom would acquire equity interest in the retail dispensary and then rollout full recreational expansion if legalization passes in the Garden State, which is expected by next year.