The marijuana stock market has grown by leaps and bounds over the past year or so. One of the reasons for the growth in the industry is the way many firms utilize strategic acquisitions. One way a marijuana stock can create value is announcing key acquisition sparking the interest of various investors. The progress that’s been made in the cannabis industry is nothing short of amazing.
This Marijuana Stock Acquires GR Companies For $875 million
Curaleaf Holdings a cannabis stock that has been one of the more important players in the marijuana stock market. This pot stock climbed 17.60% after it announced that it had agreed to acquire multi-state operator GR Companies. The deal is worth $875 million and the transaction is going to take place in both cash and stock.
The deal represents the coming together of two of the biggest marijuana stocks in the marijuana industry. Once the acquisition is completed, Curaleaf will have a presence in 19 states. It will also give Curaleaf a strong presence in states like Pennsylvania and Illinois. Additionally, the combined entity will also have 26 processing sites, 131 licenses for dispensaries, 68 operational locations and as many as 20 sites for cultivation. Curaleaf is going to pay $40 million in cash, $40 million in shares at the price before close on Wednesday and 102.8 million additional Curaleaf shares.
Supreme Cannabis To Acquire Truverra For C$20 million
The other important acquisition was announced by Supreme Cannabis Company Inc. Supreme announced that it has reached an agreement to acquire privately held company Truverra in a deal worth C$20 million. It is a highly strategic acquisition since Supreme will get a greater foothold in the Canadian market. As well as on the international market through two Truverra subsidiaries.
One subsidiary, Canadian Clinical Cannabinoids (CCC) operates entirely in Canada, while Truverra’s European operations will allow Supreme to expand into the thriving European market. Additionally, Supreme will also get hold of CCC’s facility in Scarborough, which is going to be used for the purposes of cannabis extraction and the production of items like concentrates among others.