Public Marijuana Companies Using Stock To Make Acquisitions: What Does This Trend Mean For Investors?

There’s an increasing tendency among publicly traded cannabis companies: making acquisitions using only or mostly stock, rather than cash. In fact, Benzinga recently shared a look into iAnthus Capital Holdings Inc (CNSX: IAN) (OTC: ITHUF)’s $17.3 million purchase of Valley Agriceuticals. While the transaction has not been closed yet, the companies announced the payment will be completed with $2.3 million in cash and $15 million in iAnthus shares priced at $2.00 per share.

This was not the first big transaction where a public marijuana company used its stock to purchase another business. Actually, during a recent conversation, Alan Brochstein, author of the 420 Investor, noted there seemed to be a trend emerging. So, Benzinga reached out to the expert, and asked him about the issue.

Taking Advantage Of Public Status

Reasons to go public abound. Some companies turn to the public markets as a way of providing investors with the

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