When it comes to marijuana market sizing, the United States population is nearly 8x larger than Canada‘s. This has led many investors to the thesis that the companies that end up dominating the U.S. domestic market will become far larger and more valuable than many of the largest Canadian licensed producers are today.
Canopy Growth Corp. (NYSE:CGC) (TSX:WEED) recently highlighted that simple investment thesis as it signed a deal to buy multi-state operator Acreage Holdings, Inc. (CSE:ACRG.U) (OTC:ACRGF) for $3.4 billion – contingent upon marijuana’s legalization in the U.S.
At this point, legalization in the United States is just a matter of when not if. As long as U.S. legalization occurs sometime within the deal’s 90-month expiry window, which is a “high likelihood” according to GMP Securities analyst Martin Landry, then Canopy will already have a seat at the table reserved.
Until that happens, every single multi-state operator is fighting state-by-state to gain presence and market share.
What is a Multi-State Operator?
Surprisingly, out of over 200 different marijuana stocks, only about a dozen of them have made it their mission to take over the United States cannabis market state by state.
While there are a handful of publicly-traded cannabis companies that have operations in one U.S. state, multi-state operators are the rising behemoths that may be selling marijuana products in every single state one day, just like McDonald’s Corp. (NYSE:MCD) does fries and burgers.
Today’s Biggest Multi-State Marijuana Stock Movers
Three of these multi-state marijuana companies happened to be on the move in the markets today, so without further ado, here are 3 of today’s biggest multi-state marijuana stock movers on Monday, April 29, 2019 (in alphabetical order):
Today, shares of Acreage Holdings Inc. (CSE:ACRG.U) (OTC:ACRGF) were up approximately 2.62% on the CSE, closing the day at C$22.70 per share. On the OTC markets, shares of Acreage were up approximately 2.67%, having last traded at $22.69 per share on lower than average trading volume. Presumably, shares of Acreage are up as more investors decide to get in on the merger-arbitrage opportunity caused by the recently announced deal with Canopy Growth.
Also, shares of Liberty Health Sciences Inc. (CSE:LHS) (OTC:LHSIF) were down approximately 2.38% on the CSE, closing the day at C$0.82 per share. On the OTC markets, shares of Liberty Health were down approximately 3.44%, having last traded at $0.61 per share on higher than average trading volume. Presumably, shares of Liberty Health sold off as competitor Green Thumb Industries Inc. (CSE:GTII) (OTC:GTBIF) increased its presence in Florida.
Last but not least, shares of Sunniva Inc. (CSE:SNN) (OTC:SNNVF) were up approximately 5.44% on the CSE, closing the day at C$5.23 per share. On the OTC markets, shares of Sunniva were up approximately 5.41%, having last traded at $3.90 per share on lower than average trading volume. Presumably, shares of Sunniva are on the rise following this morning’s announcement that Sunniva acquired an 80% membership interest in 420 Distribution, LLC and Coachella Distillation, LLC from Group Two Investments, LLC.
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