Cannabis penny stocks are up and down again this morning. Early this morning, Aleafia Health Inc. (TSXV:ALEF) announced that it would acquire Emblem Corp. (TSXV:EMC). This news has caused one stock to flop and the other to rise.
Today, we'll cover this acquisition and both stocks' latest market movements.
Aleafia Health and Emblem Corp Merge
Aleafia Health is headquartered in Concord, Ontario, and operates as a vertically integrated cannabis company. The company is centered in the medical cannabis space. Aleafia offers patients medical consultation services for illnesses such as chronic pain and other disabling ailments. The company's medical clinics operate under the Canabo medical clinic brand in Canada.
Emblem Corp is headquartered in Toronto, Ontario, and it produces, distributes, and sells medical cannabis across Canada. The cannabis company also operates medical cannabis education centers, to educate patients on making informed decisions about medical cannabis treatments to physicians and patients. Both cannabis penny stocks have a similar mission and goal within the medical cannabis space.
Aleafia Health will acquire Emblem Corp for around $173.2 million CAD. The transaction between both cannabis penny stocks has been approved unanimously by Emblem's board.
“The Emblem acquisition rapidly accelerates the execution of Aleafia’s strategy to become a vertically integrated, diversified cannabis company. It is difficult to overstate the significance of securing the highest quality medicine for our patients and Aleafia,” said Aleafia Health CEO Geoffrey Benic.
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He continued:
“Emblem’s product leadership in the medical and adult-use sectors and highly coveted supply agreements will perfectly complement Aleafia’s cannabis production and clinic operations. This is a transformative transaction that positions Aleafia as a global cannabis leader.”
ALEF and EMC Stock Movements
According to Yahoo Finance, the cannabis penny stocks are seeing green and red today. Aleafia stock is dropping, trading currently at $1.40 a share, down -$0.04 (-2.78%). However, EMC stock is booming, trading currently at $1.06 a share, up +$0.11 (+11.58%).
Featured Image: Depositphotos/© leungchopan
