No, this isn’t a technical article about 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 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 others on the Canadian Stock Markets can inform you all you need to know these days regarding the development and trajectory of the industry.
Mergers & Acquisitions
Naturally, as the industry grows, larger players in the marijuana market, and 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), acquired a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking possible partners in numerous markets throughout the USA for acquisition. Nonetheless, there are likewise interior industry mergers happening as well. Today it was revealed that MedMen has acquired PharmaCann for $682 Million bucks in an all stock bargain. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a considerable player in the markets, owning provisioning centers, processing facilities and also grows in multiple States, including Michigan. To date, this is the biggest inside the industry merger and also acquisition deal yet. Expect this to continue at a fast pace as even more States legalize medical and also recreational marijuana.
For the single location provisioning center, this information may not look like much of anything. Nevertheless, every person must focus. As these mergers as well as acquisitions proceed, the impact will certainly trickle to the smaller, solitary State or single location players. The key to long-term survival as well as ensuring the very best possibility of making money from a future merger or acquisition chance: enter into a vertical integration chain.
To do that, you need to have the ideal connections and also industry know how to connect with processors, growers, labs and also transporters that can interact, with contractual guarantees and obligations. If that interests you, we can help. Give our office a call
as well as set up a meeting to review all of your options.
As Cannabis Industry Grows, So Do the M & A Numbers