Curaleaf Holdings (CURLF) announced last Wednesday how it had entered a deal to acquire Grassroots Cannabis Companies (GR Companies). The deal involved cash and stock transactions, Market Realist reported. It will be worth $875 million upon closing the deal, making Curaleaf the world's largest cannabis company according to revenue.

Grassroots is a private cannabis company in the US which has 61 dispensary licenses and branches in 20 locations. The company has 17 cultivation and processing licenses.

A total of 131 dispensaries with 69 operational locations will fall under Curaleaf's control once the deal falls through. They will also have a presence in 19 states from the current 12, thanks to the territories currently under Grassroots' control.

At the stock exchange, the announcement from Curaleaf created a definite spike in its stock price. Curaleaf closed trading on Wednesday 17.8% higher than the previous day's closing price. The company had returned 31.4% year-to-date, outperforming the broader equity market with the S&P 500 Index returning 19.8% and the Horizons Marijuana Life Sciences ETF closing with 18.9%.

Curaleaf's purchase of GR Companies has become the highlight of last week and made marijuana stocks a big highlight. The Motley Fool reported that the only bad spot was a recommendation cut from a high-powered investment bank, which pressured the market enthusiasm in winning tenders.

Investors are advised to welcome the news as Curaleaf is showing how it is effectively maintaining the acquisitions-to-build-size strategy. $875 million isn't just spare change; Grassroots is also a highly important addition to the Curaleaf corporate strategy, given how the number of dispensary licenses supplemented Curaleaf's own and expanded the company's geographic footprint.

The other news of that week showed how OrganiGram Holdings of Canada posted a bottom-line loss for the Q3 of fiscal 2019 earnings. Despite its net revenue for the period--$18.96 million-it still displayed a net loss of $7.75 million, in contrast to the same period in 2018, where it had a net profit of $2.1 million.

As a result of the acquisition, analysts are seeing revenue of $324.3 million for Curaleaf's end-of-year. The company's revenue is expected to rise by about 320.8% from its $77.1 million profit in 2018. The company is also expected to turn profitable with a net profit of $24.0 million seen by analysts, a big leap from where it was in 2018 when it incurred a net loss of $36.7 million.