Is Acreage Holdings Stock a Buy?

Back in April 2019, Canopy Growth (NYSE: CGC) reached an agreement to acquire Acreage Holdings (OTC: ACRGF) for $3.4 billion. However, this deal came with a major caveat: The transaction will take place only if marijuana becomes legal at the federal level in the U.S. The acquisition price represents a significant premium on Acreage Holdings' market value, which is currently $542 million. 

In other words, those who decide to purchase shares of the New York-based cannabis company now will be handsomely rewarded if this deal goes through. That being said, there is, at this point, little reason to think the U.S. will legalize marijuana anytime soon. So before rushing to purchase shares of Acreage Holdings because of its pending merger with Canopy, investors should consider the company on its own merits. With that in mind, let's see whether Acreage Holdings -- whose shares slid by 68.9% last year -- is a buy.

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Source Fool.com