As another month ends, the Investing News Network (INN) provides a recap of some of the most critical April developments in the public marijuana space.


The cannabis public sector was all abuzz this past month thanks to two key acquisition plans pushing the boundaries for expectations in the sector.

While merger and acquisition activity has been a consistent trend, the nature of the most recent deals upended some of the previously accepted limitations for players in the industry.

Arguably one of the biggest deals of the year is Canopy Growth’s (NYSE:CGC,TSX:WEED) plan to acquire multi-state operator (MSO) Acreage Holdings (CSE:ACGR.U,OTCQX:ACRGF).

The two marijuana companies agreed to a plan that states Canopy will gain the right to acquire Acreage only when marijuana becomes a legal substance at the federal level in the US.

Acreage shareholders will receive a payment first of US$300 million or US$2.55 per Acreage share. The overall deal is worth US$3.4 billion, according to the two firms.

“When the right is exercised, having access to Canopy Growth’s deep resources will enable us to innovate, develop and distribute quality cannabis brands across the US and continue expanding our US footprint,” Kevin Murphy, president and CEO of Acreage Holdings, said in a press release.

This deal is one of the first agreements under which a publicly traded Canadian producer has announced its intentions to enter the US cannabis market.

The second deal that caught the attention of the market was the planned acquisition of Origin House (CSE:OH,OTCQX:ORHOF) by Cresco Labs (CSE:CL,OTCQX:CRLBF) for C$1.1 billion. That comes to a price point of C$12.38 per share.

“Origin House is one of the only cannabis players that figured this out early and took a pure play approach to the market as a base for national and international expansion,” Charlie Bachtell, CEO of Cresco Labs, said in a press release.

Charles Taerk, president and CEO of Faircourt Asset Management, told INN this move will create the “most dominant” MSO in California, since other MSOs have not placed a “major foothold” in the state yet.

Taerk, who also acts as the sub-advisor to the Ninepoint Alternative Health Fund, said Origin House is one stock that has been misunderstood by investors and has held a top 10 position in his fund.

Watch the video above for more on what happened during the month of April.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less