Harvest buying Verano in US$850M multi-state blockbuster

Seriously…it’s the largest pot deal south of the border to date. Harvest Health and Recreation is buying privately-held Verano Holdings in an all-stock agreement worth about US$850M. The combined entity will make it one of the largest multi-state operators in the U.S. Harvest will now hold licences to operate up to 200 facilities in 16 states and territories, including 123 retail dispensaries. The deal also continues the trend of marijuana companies using their stock as currency rather than cold hard cash.

Cronos Group hit with sell rating… again

Shares of Cronos closed lower Monday after being hit with its third downgrade this year. This time BMO Capital Markets lowered its rating on the company to “underperform,” citing Cronos’ high valuation compared to rivals like Canopy Growth, Aurora and Tilray. Analyst Tamy Chen also believes the firm is a bit behind other licensed producers in its production ramp-up. Cronos shares have had a solid run this year, though, with a rally of about 90 per cent. Currently, the company has four buys, five holds and three sells according to Bloomberg.

Aurora Cannabis extends its reach in Germany

Aurora is adding to its products on offer in Germany, announcing it will begin selling cannabis oil drops in the country’s pharmacies. The Edmonton-based cannabis producer first started supplying the German market with dried flowers through its Aurora Deutschland unit in 2015 and added to that product lineup with Canadian-grown marijuana in 2017. Aurora says it helps give it early-mover advantage in Germany, as many producers have been eyeing Europe for growth.

No quick vote for legal marijuana in N.Y.

New York Governor Andrew Cuomo says the state will likely take longer than expected to iron out the details of recreational marijuana legalization. He says hopes are fading for legalization to be included in the state budget due on April 1, but he is hoping for movement on the issue in June before lawmakers adjourn. If not, New Yorkers would have to wait to legally smoke pot until at least next year.

DAILY BUZZ

48%
... of companies polled in the Conference Board of Canada's 2019 Benefits Benchmarking report said they’d consider adding medical cannabis to employees’ health care spending accounts in the future.

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