A New Cannabis Behemoth Was Created Last Week
Last week, the rapidly evolving U.S. cannabis industry changed forever when one of the largest U.S. multi-state operators (MSOs), Trulieve Cannabis (OTC: TCNNF), agreed to acquire a smaller but still substantial peer, Harvest Health & Recreation (OTC: HRVSF), for $2.1 billion in stock.
While most large U.S. MSOs have been scooping up smaller private companies and license holders in select states, this acquisition is the largest tie-up in U.S. cannabis history. It also occurs at a historic time, as the U.S. seems to have reached a tipping point regarding the legalization of cannabis across the country.
Given the 34% premium Trulieve is paying, Harvest's stock surged and Trulieve declined on the news. And while Trulieve does seem to be paying a healthy price for Harvest, the transaction could pay off down the road.
Source Fool.com
