Growing Cannabis
No, this isn't a technical article about just 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 more marijuana legalization measures on ballots throughout the USA, the stigma on the industry is reducing, 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 regarding the growth and also trajectory of the industry.
Mergers & Acquisitions
Certainly, as the industry grows, bigger players in the marijuana market, and 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), acquired a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking prospective partners in various markets across the USA for acquisition. However, there are additionally inner industry mergers taking place also. Today it was announced that MedMen has purchased PharmaCann for $682 Million bucks 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 in the marketplace, having provisioning centers, processing facilities and also grows in several States, including Michigan. To date, this is the biggest inside the industry merger and also acquisition deal yet. Anticipate this to continue at a fast pace as even more States legalize medical and recreational marijuana.
Everyday Impact
For the single location provisioning center, this information might not feel like much of anything. Nonetheless, every person needs to focus. As these mergers and also acquisitions proceed, the impact will certainly trickle to the smaller, single State or single location players. The key to long term survival and also ensuring the best possibility of benefiting from a future merger or acquisition opportunity: enter into a vertical integration chain.
To do that, you need to have the ideal connections and industry know how to connect with processors, growers, labs and also transporters who can collaborate, with contractual guarantees and also obligations. If that interests you, we can help. Give our office a call
as well as set up a meeting to discuss all of your choices.
Monday, February 1, 2021
As Cannabis Industry Grows, So Do the M & A Numbers
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