American cannabis companies are going public at a breakneck speed . . .
These companies are using millions of dollars of newly raised capital – and their own publicly listed stock – to finance new acquisitions.
This M&A activity is making some folks rich . . . but it’s hurting the share price of some major players.
Do you want to make money – especially if this stock market correction continues?
Go here to get details on my urgent briefing (it’s FREE):
Today, Acreage Holdings (Pink Sheets: ACRZF) announced a new acquisition that expands the company’s footprint.
Acreage is acquiring a portfolio of real estate from Blue Tire Holdings to bring cannabis to Michigan. On Nov. 6, Michigan voters passed a referendum that legalizes adult use of cannabis statewide.
Michigan already had a $711 million medical marijuana market – the second-largest in the country. And adult use could quickly grow this market to over $1.5 billion.
Initial plans call for dispensaries in Detroit, Bay City, Battle Creek, Lansing and Ann Arbor.
Acreage secured a 55,000-square-foot facility in Flint. This will be used as an indoor cultivation facility, and can also provide manufacturing and packaging.
The company already operates in 14 states, including California, Connecticut, Florida, Iowa, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Oregon and Pennsylvania.
In its pot stock IPO, Acreage stock started trading on Nov. 16.
Just days before the pot stock IPO, the company raised $314 million in a private placement. That placement was priced at $25 per share.
Acreage shares briefly reached nearly $27 per share and have since retreated to $23.
That means investors who purchase shares today can get in at a preferable price to the latest private placement.
The overall stock market has fallen into a “correction” – with the S&P 500 down 10% from its highs.
That overall market decline has sparked a sudden drop for pot stocks.
Are you worried about what’s next for stocks? Are you concerned that an upcoming market crash could destroy your investment portfolio?
If you have any concerns, you must check out this LIVE briefing: