Legal marijuana stocks are racking up a lot of milestones lately:
- More and more states are legalizing.
- Pro-marijuana stances are now all but expected of 2020 candidates.
- Hemp is legal, paving the way for the first “big box” retailers to sell CBD.
- And most importantly, banks are close to being able to lend to cannabis companies.
Now there’s another to add to the list: the industry’s first billion-dollar merger.
That’s the deal for Cresco Labs (CRLBF) to buy CannaRoyalty, which does business as Origin House (ORHOF), for a cool 1.1 billion Canadian dollars, or approximately $850 million.
While Origin House is Ontario-based, it does a lot of business in California — America’s oldest and largest legal marijuana market — where it serves more than 500 dispensaries.
That’s what makes it well worth the hefty price tag to Cresco Labs, whose ambition was to become “the cannabis industry’s first national ‘house of brands’ with a growing multi-state footprint that includes leading distribution market share in some of the largest states in the country including California, Pennsylvania, and Illinois.”
After this mega-merger, the new and improved Cresco Labs will be in prime position to cash in on a true national marijuana market (once Congress gets it together to pass federal legalization). I’ll certainly be monitoring this stock as a potential buy for Investment Opportunities.
My readers have definitely had luck with a previous “biggest marijuana merger ever”: the $835 million deal between iAnthus Capital (ITHUF) and MPX Bioceuticals in October.
As with Cresco and CannaRoyalty, the idea was further geographical penetration in the United States. After the merger, iAnthus now has operations in 11 states, more than 60 retail locations, and over 500,000 square feet of cultivation and processing space.
Most importantly for us as investors in marijuana stocks — iAnthus is expected to be one of the first to turn a meaningful profit.
With all of the Wall Street analysts covering the stock and rating it a “Buy,” it’s no wonder that shares are up 46% in 2019 to date.
Yet iAnthus is still a phenomenal bargain when you consider this: Based on 2020 earnings estimates, its price-to-earnings (P/E) ratio is just 20.6.
iAnthus is still one of my top marijuana stocks to buy. And I’m about to release my NEXT pick tomorrow — on April 4.
I’ve got a whole system for finding marijuana stocks that I call the Cannabis Cash Calendar. I designed it to let investors like you benefit from one of the best wealth-creating strategies throughout history: Buying early.
However, I do caution everybody who will listen that you don’t want to just buy any old IPO — even in a transformative industry like legal marijuana.
There’s homework involved. And it’s crucial to get the timing right.
Let me take care of that for you. You can get in on the action — and be ready for tomorrow’s new buy — by reviewing the details and signing up here.
P.S. Mark your calendar!
For April 9 at 7 p.m. Eastern time…
That is the date I am revealing a market anomaly that is sending certain cannabis stocks up over 1,000%.
My team and I have been working on this strategy for the last year and could not believe what we discovered. It is now time to share this with you.
Keep your eyes open for an update next week when we give you a behind the scenes look as we prepare for the April 9 event.
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