Cannabis M&A activity is heating up, with Cresco planning to pay $823 million for Origin House. However, there’s a much bigger story here that I had to make sure you understand…

Cresco Labs (CSE: CL, OTC: CRLBF) is in the news right now because it plans to buy Origin House (CSE: OH, OTC: ORHOF) in a deal valued at US$823.5 million, but there’s much more to this story, which I will talk about in just a bit.

Cresco is a multi-state operator with cultivation, processing, and retail assets.

By adding Origin House to its holdings, Cresco will have an activist investment firm under its belt that gives it a strong foothold in California.

Origin House’s strategy is built upon the premise that very little value will accrue to cannabis growers and that most of the value will be captured by downstream activities. There’s just not a lot of money to be made from purely growing cannabis.

So these downstream assets generate more income from essential services related to the cannabis industry such as product testing, research, extraction, product development, production, distribution, branding, and retail operations.

Now, a merger and acquisition (M&A) valued at almost $1 billion is noteworthy, and this type of activity is only going to ramp up. Cannabis firms are in a race to become the biggest players in the world, and to get there, it involves big acquisition deals like this.

Having said that, there is something much more important about this deal than just the final cost to Cresco.

It’s a cannabis investing theme I’ve mentioned a lot, and it’s going to help you spot the biggest and best profit opportunities, way before everyone else…

Successful Cannabis Branding Is the Key to Profits

One of the reasons Origin House was such an attractive acquisition target was that it’s a top-tier branding company. It has a total of five owned or licensed Origin House brands, it owns two California cannabis distributors, and it distributes 35 brands in California.

And if you remember from back in January, I said that I want to see the Starbucks of cannabis branding.

Here’s what I meant by that…

Whether you walk into the Starbucks near my office here in downtown Baltimore or you visit one at Miami Beach, you know your coffee is going to taste exactly the same, no matter where the store is located.

The cannabis industry is moving so quickly even its staunchest opponents have come around. Even former Speaker of the House John Boehner is telling Americans to go “all in” – and he’s revealing three events set to unleash the profit opportunity of a lifetime. Take a look

Being able to go to a store and get the same experience, no matter a store’s location, is how a successful brand should operate. The Seattle coffee giant has earned customers’ trust through branding, and that is why Starbucks is now worth $92 billion.

Right now, cannabis firms are still figuring out their branding strategy.

It’s hard to create a cohesive branding experience if each state has such different cannabis laws in place.

Until recently, smokable cannabis was not allowed in Florida. That means a cannabis firm won’t have the same type of products in the Sunshine State as they do in Denver. There just hasn’t been enough time for cannabis companies to build brands that are associated with quality, consistency, and have global or even regional recognition.

Though, as in the case with Origin House, you can see in the chart below that making branding a central focus can lead to handsome profits.

As part of my research reports, I always evaluate how well a company is executing on its branding strategy. In fact, it’s one of the reasons Origin House received a 5 rating in our NICILytics database.

NICILytics includes every publicly traded cannabis company, a number of companies planning on going public soon, and a lot of extremely promising new startups.

All of these companies have undergone our comprehensive vetting process.

They’ve all been rated on our simple 0-5 scale.

If you want to see all the cannabis tech stocks, or the medical firms, or the up-and-coming brands – you can sort this database by market sector.

Or, if you want to find just the best of the best, you can sort by rating.

Utilizing this tool is just another way you could gain an edge over other retail investors.

Before you go, I wanted to show all of our readers another way to profit from the cannabis sector. Make sure to read this report on an interesting little bank we found. We think it has a lot of room to run, much like this other company dashing in where most banks fear to tread.

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. If you want a shot to get even richer from America’s next trillion-dollar transformation, you need to know about the ULTIMATE pot stock investing tool. Our comprehensive cannabis database contains protected information on every publicly traded cannabis company on the market, future IPOs, and numerous front-runners and startups. We call it The Vault” – and you can see how it works right here.


Comments

18 responses to “This Is the Strategy That Unlocks the Biggest Cannabis Profits”

  1. Cresco taking over California is huge. California now has a real MSO and a company like Medmen won’t be around very long unless they get acquired. Cresco has now set the standard and I can finally rest now that we have one of the top MSO’s in our state. Believe it or not this was a big win for California

  2. I have stock in Origin House. How will this be affected?
    Awhile back there was another deal where some stock split, can’t remember who, but I never seen it. I have stock purchased through Fidelity.

    Thanks

  3. Good Morning Greg and Team,
    First I want to thank you guys(and girls) for all the hard work and research you do for us members of the service! The ‘Vault” is certainly an amazing and efficient tool for us to use to feel more confident in the Cannabis Market.
    I do have a Question/Comment however. In the letters to us such as this one, you mention often that the “Vault” has crucial research on “every publicly traded cannabis company on the market”. It is apparent to me and I would assume to others who have paid for the Elite Service, that there are many other Cannabis companies being publicly traded that are not in the “Vault”. Companies such as Blueberries Medical Corp., High Tide Inc. and Khiron just to name a few. Could you comment or explain please!

    Once again, thanks for all your hard work!

  4. Thank you Greg. I will be honest, I wasn’t sure how valid your service would be when I first signed on. Fortunately, for myself and many others, you have really come through with an excellent service and great reporting. This latest report is a clear example that you and the NICI have things figured out. I just wanted to take a few minutes to commend you and everyone involved at the NICI for doing such a fine job. I am sincerely happy to be a Founding Lifetime Member.

  5. Greg, another great article. I’m in on both sides of this deal as I own a good number of shares of both Cresco Labs and Origin House; which I plan to hold on to. Question though. Do you think it would be a good idea to add to my position in Origin House ahead of this deal closing? Would appreciate your thoughts.
    In regards to your article and tip on SVBI, I recently took a small position in the same; as I’ve done quite well with my position in IIPR, but have yet to take any profits; as I’m still thinking on this one, not to mention it’s pulled back recently. Lastly, I rec’d my Lifetime Members package in the mail yesterday as I recently upgraded my membership. I continued to be ALL IN! I’m enjoying the ride and learning from you. Thanks. Mike

  6. Hi Greg, Is this a good time to invest in Cresco or Origin House or should I wait until after the merger. CAL

  7. Good stuff!!
    It is my opinion that the state of Florida as the Number one tourist
    destination in the world should be the 1st state to honor all other legitimate
    marijuana certifications medical/recreational be the state certs or country certs!!
    What say you?

  8. Hello All, I have researched quite a bit on your awesome opportunities with the most awesome plant on earth!.Thank you for all your help along this super journey!.I have a question about uprades with NICI and I need to franchise my name with one of these awesome companies.Nuff playing,give me a shout and thanks again

  9. I have a total of $5,000 to invest including applying for your services. What’s the best strategy for me to take. Thank you.

  10. Word on the street is that now that this acquisition has occured, all top notch MSO’s such as Cresco, GTI, Harvest Health, Acreage, and Curaleaf will look to California to expand via acquiring mostly private and some public companies doing business here in California. We have many legitimately big, private companies in California like Flow Kana and Candescent to name a few that would be excellent acquisition targets. We also have public companies here in California that will be awesome acquisition targets. California won big time with Cresco Labs and Cresco knew that the golden state was the biggest cannabis market in the world with no dominant MSO’s. This was a brilliant move into an untapped, fragmented market, one that will inspire my other afforementioned MSO’s into making serious moves and footprints into the golden state. The race is now on in regards to expansion and MSO’s growing their business’s; between these wealth creating MSO’s into California and throughout the US.

  11. Hi Greg and Team
    How will my stock in Creso Labs be effectied with this Hugh merger…???
    Sounds like Great News and Thanks for your advice with my investments…!!!
    Please advises….
    Joshua

  12. So my question is. ls Corporate cannibis part of this movement? I do have a few shares there that I will hold on to but am in the process of allocating funds to further my reach in the cannabinol movement, and I will put funds into Cresco soon.

  13. Greg, I bought the elite membership about a month ago. I have been following you instructions and have bought 12 different stocks. I worry that I am spreading myself too thin. Should I just narrow my stocks down and just invest in a few good ones?

  14. DEAR SIR,

    THANK YOU FOR INFORM ME AND JOINT OF COMPANY ABOUT PROFIT OF SHARE.

    I HOPE HAVE SUPPORT ME OF FUNDS . I WANT WITHDRAW OF FUNDS FOR SUPPORT ME MY LIFE.
    I HOPE OF FUNDS HAVE MAKE PAYMENT BY CEK BANK DRAFT.
    THANK YOU FOR ALLS UPPORT.

  15. I have never bought a stock before. where do I get started buying cannabis stocks. your help would be greatly appreciated. looking for stocks I could hold on to for maximum profits. thank you joe boothroyd

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