RE:RE:RE:Look at the PP PresentationCresco Labs mkt cap according to the MJ Index is $581m
and Origin House is listed as $763m
But here is some insight from an experianced broker.
Cresco is not done after this acquisition, either. There's no question that Cresco intends to be the largest cannabis company in the world. And this acquisition puts it on the road to get there.
Cresco did not pay a huge premium for Origin House shares, but both stocks have been on a run - Cresco is up 24% in the past month and Origin House is up 34%. Additionally, I like to see a relatively small premium paid at the time of acquisition - it indicates that the seller thinks that the buyer's stock is as much of a bargain as the seller's. That leaves a lot of room for gains in the aftermath of the acquisition.
Harvest Health and Recreation's (CSE: HARV, OTC: HRVSF) acquisition of
Verano is an example of that. Verano did not demand a big premium for its assets, and the result is that
Harvest Health's stock is up by 35% in just the 2.5 weeks since it announced the merger. By accepting a lower "press-release" price, Verano's investors made a third more than if they had held out for a few more shares. In light of the Cresco Labs-Origin house deal, other companies will now feel compelled to complete large mergers sooner rather than later, so moves like Harvest Health's acquisition of Verano will now become a necessity, not an option, for companies with national ambitions.