As Cannabis Industry Grows, So Do the M & A Numbers
Growing Cannabis
No, this isn't a technical article about exactly how to better grow cannabis, or a new hydro system. The marijuana industry is proliferating. With legalization in Canada taking full effect on October 15, 2018, as well as much more cannabis legalization measures on ballots throughout the United States, the stigma on the industry is diminishing, 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
Of course, as the industry grows, bigger players in the cannabis market, and also outsiders, will be coming in to obtain companies across the cannabis marketplace. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), acquired a part of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking possible partners in different markets throughout the USA for acquisition. Nevertheless, there are likewise internal industry mergers occurring also. Today it was introduced that MedMen has bought 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, possessing provisioning centers, processing facilities and also grows in multiple States, including Michigan. To date, this is the largest inside the industry merger as well as acquisition deal yet. Expect this to continue at a fast pace as even more States legalize medical as well as recreational marijuana.
Daily Effect
For the single location provisioning center, this news may not appear like much of anything. Nevertheless, every person should take note. As these mergers and also acquisitions proceed, the effect will certainly trickle down to the smaller, single State or solitary location players. The key to long term survival and guaranteeing the best possibility of benefiting from a future merger or acquisition possibility: enter into a vertical integration chain.
To do that, you need to have the best connections and also industry know how to connect with processors, growers, labs and transporters who can interact, with legal guarantees and obligations. If that interests you, we can help. Give our office a call
and set up a meeting to discuss all of your options.
Comments
Post a Comment