Growing Marijuana
No, this isn't a technological article about just how to better grow cannabis, or a brand-new hydro system. The cannabis industry is growing rapidly. With legalization in Canada taking full effect on October 15, 2018, as well as much more cannabis 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 and also others on the Canadian Stock Markets can inform you all you need to understand these days about the development and trajectory of the industry.
Mergers & Acquisitions
Obviously, as the industry grows, larger players in the marijuana market, and outsiders, will be coming in to acquire companies across the cannabis industry. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), got a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking prospective partners in various markets across the USA for acquisition. Nevertheless, there are additionally interior industry mergers occurring also. 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 significant player on the market, having provisioning centers, processing facilities as well as 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 more States legalize medical as well as recreational marijuana.
Day-to-day Impact
For the single location provisioning center, this news might not seem like much of anything. Nevertheless, every person ought to pay attention. As these mergers and acquisitions continue, the impact will certainly trickle down to the smaller sized, single State or solitary location players. The key to long-term survival and also making certain the very best 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 also industry know how to link with processors, growers, labs and transporters who can interact, with legal guarantees and also obligations. If that interests you, we can aid. Give our office a call
and set up a meeting to go over all of your options.
The Democracy Institute is a politically independent public policy research organization based in Washington and London.
Thursday, 22 October 2020
As Cannabis Industry Grows, So Do the M & A Numbers
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