Growing Marijuana
No, this isn’t a technological article about how to better grow cannabis, or a brand-new hydro system. The cannabis industry is growing rapidly. With legalization in Canada taking complete effect on October 15, 2018, and also more cannabis legalization measures on ballots across the United States, the stigma on the industry is shrinking, 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 regarding the growth and trajectory of the industry.
Mergers & Acquisitions
Of course, as the industry grows, bigger players in the cannabis market, and outsiders, will certainly be coming in to obtain companies across the cannabis market. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), got a portion of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking potential partners in different markets across the USA for acquisition. Nonetheless, there are likewise inner industry mergers taking place also. Today it was introduced that MedMen has purchased 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 substantial player in the marketplace, owning provisioning centers, processing facilities and grows in numerous States, including Michigan. To date, this is the biggest inside the industry merger and acquisition deal yet. Expect this to continue at a fast pace as even more States legalize medical and also recreational marijuana.
Everyday Effect
For the single location provisioning center, this information might not seem like much of anything. However, everybody should focus. As these mergers as well as acquisitions continue, the impact will trickle down to the smaller sized, solitary State or solitary location players. The key to long-term survival and guaranteeing the most effective opportunity of making money from a future merger or acquisition opportunity: enter into a vertical integration chain.
To do that, you need to have the right connections and industry know how to link up with processors, growers, labs and transporters that can work together, with contractual guarantees and obligations. If that interests you, we can assist. Give our office a call
and set up a meeting to go over all of your choices.
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As Cannabis Industry Grows, So Do the M & A Numbers
