As Cannabis Industry Grows, So Do the M & A Numbers
Growing Marijuana
No, this isn't a technological article about exactly how to better grow cannabis, or a new hydro system. The marijuana industry is growing rapidly. With legalization in Canada taking full effect on October 15, 2018, and much more marijuana legalization measures on ballots across 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 know these days concerning the growth and also trajectory of the industry.
Mergers & Acquisitions
Of course, as the industry grows, larger players in the cannabis market, and outsiders, will certainly be coming in to get companies across the marijuana 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 looking for prospective partners in various markets throughout the United States for acquisition. However, there are also inner industry mergers happening also. Today it was revealed that MedMen has actually bought PharmaCann for $682 Million dollars 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 on the market, owning 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 and also recreational marijuana.
Everyday Impact
For the single location provisioning center, this news may not look like much of anything. Nonetheless, everybody must take note. As these mergers and acquisitions proceed, the impact will trickle to the smaller sized, solitary State or single location players. The key to long-term survival as well as making sure the very 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 best connections and industry know how to link up 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 go over all of your options.
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