Marijuana stocks are booming this morning, kicking off a great start to the week. Today, we'll take a closer look at a marijuana stock that is trending on the CSE, Origin House (CSE:OH).
2018 was a monumental year for the cannabis industry in North America. California legalized the use and distribution of recreational adult-use cannabis in January, and in October, recreational cannabis became legal across all of Canada. Now, most cannabis companies in the US and Canada are just trying to keep up with demand. Most public cannabis companies have seen massive growth in sales this past year. The way marijuana stocks have been trending already in 2019, it looks like it could continue its trend upward.
Today, we're taking a look at OH stock to see how Origin House is fighting to keep its long-term place in the North American cannabis industry.
Marijuana Stock: Origin House (CSE:OH)
Formerly known as CannaRoyalty Corp, Origin House is a private equity firm based out of Ottawa, Ontario. Origin currently focuses its efforts on acquisitions in the cannabis space. The company also focuses its efforts on cannabis products and brands.
This morning, OH stock made a big announcement. Shareholders of Origin stock representing around 26% have entered into a voluntary voting support agreement with the company.
This past year, Origin House has been approached by several public cannabis companies to acquire it. To date, the company feels these approaches have not valued the company appropriately for the long-term.
Marc Lustig, Chairman and CEO of Origin House, explained:
“There is a growing trend within the cannabis sector of hostile consolidation transactions with companies using their stock as currency. We are seeking to protect the Company from opportunistic paper bids designed on taking advantage of shareholders by offering short-term gain while depriving them of the more significant potential long-term value that we are building [...] To be clear, the Support Agreements are intended to protect shareholders from coercive or opportunistic bids only, and the Company remains committed to considering bona fide opportunities that enhance value for its shareholders.”
OH Stock Movement
According to Yahoo Finance, OH is currently trading at $7.60 a share on the CSE, up +$0.69 (+9.99%).
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