Trulieve Cannabis: Giant Deal Discounted

 

  • Trulieve Cannabis agrees to buy Harvest Health for $2.1 billion.
  • The combined company has the leading profitability position for 2021.
  • The new Trulieve Cannabis still trades at a discount to MSO peers, but the company won't be the largest cannabis company by revenues in 2022.
  • The stock remains a bargain, but Trulieve is likely to trade at a discount as the single state focus remains.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

In a somewhat surprising move, Trulieve Cannabis (OTCQX:TCNNF) agreed to acquire struggling multi-state operator (MSO) Harvest Health & Recreation (OTCQX:HRVSF) in a giant deal in the cannabis space. The combined company will now compete for the largest cannabis company in the world title. My investment thesis remains bullish on the leading MSOs, as those companies consolidate the largest cannabis market in the world before outside companies are allowed into the U.S. market.

Read the full article on Seeking Alpha. 


Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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