Growing Cannabis
No, this isn't a technical article about how to better grow cannabis, or a brand-new hydro system. The marijuana industry is proliferating. With legalization in Canada taking full effect on October 15, 2018, as well as a lot more marijuana legalization measures on ballots throughout the USA, 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 inform you all you need to know these days concerning the development and trajectory of the industry.
Mergers & Acquisitions
Obviously, as the industry grows, bigger players in the cannabis market, as well as outsiders, will be coming in to acquire companies across the cannabis marketplace. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), obtained a portion of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are looking for possible partners in different markets throughout the United States for acquisition. Nonetheless, there are likewise inner industry mergers occurring too. Today it was announced that MedMen has purchased PharmaCann for $682 Million dollars in an all stock offer. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a significant player on the market, having provisioning centers, processing facilities and grows in several States, including Michigan. To date, this is the largest inside the industry merger and also acquisition deal yet. Expect this to continue at a fast pace as more States legalize medical and also recreational cannabis.
Daily Impact
For the single location provisioning center, this information might not look like much of anything. Nevertheless, every person needs to take note. As these mergers and acquisitions proceed, the impact will trickle down to the smaller, single State or single location players. The key to long term survival and also ensuring the best possibility of profiting from a future merger or acquisition chance: become part of a vertical integration chain.
To do that, you need to have the appropriate connections and also industry know how to connect with processors, growers, labs as well as transporters who can work together, with legal guarantees and obligations. If that interests you, we can aid. Give our office a call
as well as set up a meeting to talk about all of your options.
Thursday, October 22, 2020
As Cannabis Industry Grows, So Do the M & A Numbers
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