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GWPH) - Get Report for its treatments including cannabinoid-therapeutics for $7.2 billion in cash.
The acquisition will bolster the combined company’s efforts to develop, produce and commercialize regulator-approved therapeutics that address a range of diseases, including epilepsy-related seizures associated with Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex.
Investors have been bidding cannabis companies higher in hopes that federal legalization is possible. There also has been momentum in state-by-state legalization.
In addition, Canopy Growth (
CGC) - Get Report, which is one of the companies in the Horizons Marijuana Life Sciences ETF, is scheduled to third-quarter results on Tuesday.
Last week, Piper Sandler analyst Michael Lavery downgraded Canopy Growth to neutral from overweight while keeping a price target of $27, according to the Fly.
On Jan. 14,
Cresco Labs (OTC:CRLBF) announced that it would be expanding into Florida through the acquisition of
Bluma Wellness. The all-share transaction will cost Cresco approximately $213 million worth of its stock, and in return Cresco will instantly gain seven dispensaries with the opportunity to open eight more. It s a strategic move for the company, but it s a risky one too.
Large multistate operators
Curaleaf and
Trulieve Cannabis (OTC:TCNNF) already have strong positions in Florida, which won t make it easy for Cresco to gain significant market share there. Let s take a closer look at the company s current business and the Florida market to determine whether this is a good move for the Cresco or if it will just lead to headaches for investors down the road.