Article: A Major Cannabis Stock Merger Is Now Complete, but Few Shareholders Are Cheering

Article: A Major Cannabis Stock Merger Is Now Complete, but Few Shareholders Are Cheering

Cresco Labs’ buyout of Origin House was filled with promise One such cannabis stock merger that began with a ton of promise, but seemed to limp to the finish line, was that of vertically integrated multistate operator Cresco Labs (OTC:CRLBF) and Origin House (OTC:ORHOF). On April 1, 2019, Cresco Labs shocked Wall Street by announcing an all-stock acquisition of Origin House, a company that primarily earned its living as a cannabis distributor in California. The deal, which would result in Origin House shareholders netting 0.8428 shares of Cresco for every share of Origin House they owned, was the largest U.S. pot stock acquisition announced at the time. Based on Cresco’s respective share price at the announcement of the deal, the price tag looked to be worth around $840 million. As noted, what made Cresco’s purchase of Origin House so unique is that Cresco wasn’t looking to simply buy retail licenses, grow farms, and processing sites. Rather, it found that the best way to grow sales and infiltrate the largest marijuana market in the world (California) was to acquire one of the very few companies to hold a cannabis distribution license in the Golden State. Buying Origin House allows Cresco Labs to get its products into approximately 575…

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Source : CANNANNEW REPORT
Link to original : Article: A Major Cannabis Stock Merger Is Now Complete, but Few Shareholders Are Cheering
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