Cannabis companies are wasting no time "scaling up." U.S. multi-state operators routinely spend $1 billion as they scramble to achieve a national footprint.
Harvest Health and Recreation Inc. (CSE: HARV, OTC: HRVSF) spent $850 million in stock on its acquisition of Verano Holdings LLC.
Cresco Labs Inc. (CSE: CL, OTC: CRLBF) paid $1.1 billion in stock for Origin House (CSE: OH, OTC: ORHOF).
And this is all to keep up with Canopy Growth Corp. (NYSE: CGC), which spent $3.4 billion in its stock to establish its U.S. foothold through its acquisition of Acreage Holdings (CSE: ACRG, OTC: ACRGF).
This frenetic merger and acquisition spree got underway because these companies know that whoever gets the biggest the fastest will capture the lion's share of the legalized marijuana market. That this market could easily grow at 80% per year means those that lead the pack through this highest growth phase of the cannabis market will deliver the highest returns of all cannabis stocks.
But this race to the top is way bigger than North America; the stakes are that high.
Europe could prove to be a critical market, and the more beachheads a company can establish throughout the continent, the better its chance to lead the pack in the race to scale up.
And you'll want to see how Canopy deploys its cash hoard to extend its lead even further...
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.