Growing Cannabis
No, this isn't a technological article about just how to better grow marijuana, or a new hydro system. The marijuana industry is growing rapidly. With legalization in Canada taking complete effect on October 15, 2018, and extra cannabis legalization measures on ballots across 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 inform you all you need to recognize these days concerning the development and also trajectory of the industry.
Mergers & Acquisitions
Of course, as the industry grows, bigger players in the cannabis market, as well as outsiders, will be coming in to get companies across the marijuana market. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), got a part of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking potential partners in various markets throughout the USA for acquisition. However, there are likewise interior industry mergers occurring too. Today it was revealed that MedMen has bought PharmaCann for $682 Million bucks 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, owning provisioning centers, processing facilities and also grows in numerous States, including Michigan. To date, this is the largest inside the industry merger and also acquisition deal yet. Anticipate this to continue at a fast pace as more States legalize medical and also recreational marijuana.
Everyday Impact
For the single location provisioning center, this news may not seem like much of anything. Nevertheless, everyone ought to listen. As these mergers and also acquisitions continue, the impact will trickle to the smaller sized, solitary State or single location players. The key to long term survival and ensuring the most effective opportunity of making money from a future merger or acquisition possibility: become part of a vertical integration chain.
To do that, you need to have the appropriate connections as well as industry know how to link with processors, growers, labs as well as transporters who can work together, with contractual guarantees as well as obligations. If that interests you, we can help. Give our office a call
and set up a meeting to review all of your choices.
Thursday, March 18, 2021
As Cannabis Industry Grows, So Do the M & A Numbers
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