Interesting Comment!!Take a close look at the last two paragraph!! Your not gonna get a better hint than that!!
Chicago-based Cresco Labs Inc., which recently acquired Canada’s Origin House for $1.1 billion, reported fourth-quarter results on Wednesday with US$17 million revenue and an adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of US$13.7 million, compared to US$3.3 million in revenue and an adjusted EBITDA loss of US$3.1 million a year earlier. While those figures still pale in comparison to some Canadian players, Cresco’s CEO Charles Bachtell said he would welcome any competition from Canada’s pot giants.
“The way I look at that is, the second that they're actually able to execute and come into the U.S. will be the same second that I'm able to access the U.S. capital markets. So, I'll take that trade,” Bachtell said.
White noted that the Canadian cannabis companies were likely to be working out ways to enter the U.S., given the relative valuations between U.S. and Canadian pot firms mean potential all-stock deals make sense.
“I realize there are lots of impediments to that, namely it's federally illegal in the U.S.,” White said. “And if you're listed on a major exchange, you've got to get really smart about how you structure that that opportunity. But the really smart guys are going to figure it out.”
However, one chief executive of a U.S. cannabis operator who declined to be named made an interesting observation following the Canopy-Acreage announcement. The CEO, who declined to speak on the record as he doesn’t want to risk future M&A opportunities, said the structure introduced by Canopy to enter the U.S. signalled to the market that any company can now target deals with U.S. pot companies, not just Canadian firms.
“There’s nothing here to say that any other company can’t get into this space,” the CEO said. “Why would you take [stock] from a company like Aurora Cannabis or Cronos Group? Or you could wait and do a deal with Coca-Cola or Diageo.”
Full Article: https://www.bnnbloomberg.ca/could-canopy-s-us-3-4b-deal-for-acreage-shake-up-u-s-pot-firms-playbooks-1.1249937