The cannabis group iAnthus Capital Holdings Inc (CSE:IAN, OTCQB:ITHUF) is widening its reach across the US by acquiring its Toronto-based rival MPX Bioceutical (CSE:MPX, OTC:MPXEF) in an all-stock deal worth C$835 million (US$636m).
The combined company will boast cannabis licenses in 10 US states that will offer iAnthus the chance to operate 56 retail locations and 14 cultivation and processing facilities.
After the deal is done, iAnthus will add production capabilities in Arizona, Maryland, Nevada, California and Massachusetts. These additional licenses complement iAnthus’s existing foothold in New York, Florida, Vermont, Colorado and New Mexico.
The deal follows last week’s announcement that MedMen Enterprises has moved to take over the medical marijuana company PharmaCann in an all-stock deal valued at $682 million.
READ: iAnthus Capital Holdings' revenue climbs in first half of 2018, but sees a net loss of US$36.2mln
“This is a watershed moment for iAnthus, as we nearly double the size of our national footprint in the US, said iAnthus CEO Hadley Ford in a statement.
The 10 states combined are set to provide as much as $16.2 billion in yearly cannabis sales by 2022, according to statistics from Arcview Market Research and BDS Analytics.
Under the agreement’s terms, MPX shareholders will be awarded 0.1673 shares of iAnthus for each share of MPX held, which represents a consideration of about $1.28 per MPX share.
iAnthus shares fell 6.7% to C$7.64 while MPX shares slipped 4.2% to C$1.14 in Friday’s afternoon trading session.