U.S. listed cannabis stocks are in the green this morning on reports of two new acquisitions. Tilray jumped 11% in premarket trading, Sundial 8.6%, and Canopy Growth about 5.0%.
Cresco Labs to buy Columbia Care for $2.0 billion
Cresco Labs Inc (OTCMKTS: CRLBF) on Wednesday signed a definitive agreement to buy Columbia Care Inc for $2.0 billion in stock. The deal values each share of Columbia Care at C$4.57 – a 16% premium on its previous close.
Columbia is the largest U.S. cannabis company by sales. The acquisition, therefore, will establish Cresco as the industry leader with sales projected to hit $46 billion by 2026. The transaction, which is expected to complete in Q4, is subject to customary closing conditions, including regulatory approvals.
Also on Wednesday, Cresco reported $218 million in Q4 revenue, more than $16 million shy of estimates. The stock opened 3.0% up this morning.
Aurora to acquire TerraFarma for C$38 million
In a press release on Wednesday, Aurora Cannabis Inc (NASDAQ: ACB) said it will buy TerraFarma Inc for C$38 million in cash and stock, before earnouts.
Aurora expects to close the deal by the end of its current fiscal year, subject to customary closing conditions. The acquisition will immediately be accretive to its adjusted EBITDA. The Canadian pot producer is targeting adjusted EBIDTA profitability in H1 of fiscal 2023.
Its adjusted EBITDA stood at a negative C$9.0 million in the latest reported quarter. ACB opened about 8.0% up on Wednesday.
The post U.S. listed cannabis stocks are trading up this morning: how come? appeared first on Invezz.