CRLBF - Origin House: Brighter Future Ahead After C$1.1 Billion Sale
The M&A spree among U.S. cannabis companies continued this week with Cresco Labs (CRLBF) acquiring Origin House (ORHOF) in a C$1.1 billion transaction. Both stocks have been darlings in the market while outperforming marijuana ETFs by a wide margin in the last year. We think the no-premium acquisition represents a logical combination of both companies due to the complementary footprint and potential for synergies. Rather than providing a liquidity event for Origin House shareholders, they will own shares in a more diversified and bigger company which is an attractive value proposition