Growing Cannabis
No, this isn't a technological article about just how to better grow cannabis, or a new hydro system. The cannabis industry is growing rapidly. With legalization in Canada taking complete effect on October 15, 2018, as well as a lot more marijuana 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 as well as others on the Canadian Stock Markets can inform you all you need to know these days about the development and trajectory of the industry.
Mergers & Acquisitions
Certainly, as the industry grows, larger players in the marijuana market, and also outsiders, will be coming in to get companies across the cannabis industry. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), got a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking potential partners in numerous markets throughout the United States for acquisition. Nevertheless, there are additionally internal industry mergers occurring too. Today it was announced that MedMen has actually 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 substantial player in the markets, owning provisioning centers, processing facilities and also grows in several States, including Michigan. To date, this is the biggest inside the industry merger as well as acquisition deal yet. Expect this to continue at a fast pace as more States legalize medical and recreational marijuana.
Day-to-day Effect
For the single location provisioning center, this information might not seem like much of anything. Nevertheless, every person ought to pay attention. As these mergers and acquisitions continue, the impact will trickle to the smaller sized, solitary State or solitary location players. The key to long term survival and ensuring the very best possibility of profiting from a future merger or acquisition chance: enter into a vertical integration chain.
To do that, you need to have the best connections and also industry know how to link with processors, growers, labs and transporters that can collaborate, with legal guarantees and obligations. If that interests you, we can help. Give our office a call
and set up a meeting to talk about all of your options.
Monday, February 1, 2021
As Cannabis Industry Grows, So Do the M & A Numbers
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