As Cannabis Industry Grows, So Do the M & A Numbers
Growing Marijuana
No, this isn't a technical article about exactly how to better grow cannabis, or a brand-new hydro system. The marijuana industry is proliferating. With legalization in Canada taking complete effect on October 15, 2018, and extra 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 as well as others on the Canadian Stock Markets can tell you all you need to understand these days about the development and also trajectory of the industry.
Mergers & Acquisitions
Naturally, as the industry grows, bigger players in the marijuana market, and outsiders, will be coming in to acquire companies across the cannabis market. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), acquired a portion of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are looking for possible partners in various markets throughout the United States for acquisition. Nonetheless, there are also internal industry mergers occurring as well. Today it was revealed 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 considerable player in the markets, possessing provisioning centers, processing facilities and grows in multiple States, including Michigan. To date, this is the largest inside the industry merger and acquisition deal yet. Expect this to continue at a fast pace as even more States legalize medical as well as recreational cannabis.
Day-to-day Impact
For the single location provisioning center, this information may not seem like much of anything. Nevertheless, every person must pay attention. As these mergers as well as acquisitions proceed, the impact will trickle to the smaller sized, solitary State or solitary location players. The key to long-term survival and also making sure the most effective opportunity 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 link up with processors, growers, labs and transporters who can interact, with contractual guarantees and also obligations. If that interests you, we can aid. Give our office a call
and set up a meeting to talk about all of your options.
Komentáre
Zverejnenie komentára