Growing Marijuana
No, this isn't a technical article about how to better grow cannabis, or a new hydro system. The cannabis industry is proliferating. With legalization in Canada taking complete effect on October 15, 2018, and extra cannabis legalization measures on ballots throughout the United States, the stigma on the industry is shrinking, and the industry is growing. A look at the stock prices for Tilray, Canopy, Aurora and also others on the Canadian Stock Markets can tell you all you need to understand these days about the development and also trajectory of the industry.
Mergers & Acquisitions
Of course, as the industry grows, bigger players in the cannabis market, and also outsiders, will certainly be coming in to get companies across the cannabis market. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), obtained a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are looking for prospective partners in different markets across the USA for acquisition. However, there are additionally internal industry mergers taking place as well. Today it was announced that MedMen has acquired PharmaCann for $682 Million dollars in an all stock deal. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a significant player out there, having provisioning centers, processing facilities as well as grows in multiple States, including Michigan. To date, this is the largest inside the industry merger and acquisition deal yet. Expect this to continue at a fast pace as even more States legalize medical as well as recreational cannabis.
Day-to-day Effect
For the single location provisioning center, this news may not feel like much of anything. Nonetheless, everybody ought to take note. As these mergers as well as acquisitions continue, the impact will trickle to the smaller, single State or solitary location players. The key to long term survival as well as guaranteeing the best possibility of profiting from a future merger or acquisition possibility: become part of a vertical integration chain.
To do that, you need to have the ideal connections and industry know how to link up with processors, growers, labs and also transporters that can collaborate, with contractual guarantees and obligations. If that interests you, we can assist. Give our office a call
as well as set up a meeting to talk about all of your choices.
Thursday, October 22, 2020
As Cannabis Industry Grows, So Do the M & A Numbers
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