Growing Marijuana
No, this isn't a technical article about exactly how to better grow cannabis, or a new hydro system. The marijuana industry is proliferating. 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 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 tell you all you need to know these days concerning the growth and also trajectory of the industry.
Mergers & Acquisitions
Obviously, as the industry grows, bigger players in the cannabis market, as well as outsiders, will certainly 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 portion of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are looking for prospective partners in various markets across the United States for acquisition. However, there are also inner industry mergers happening too. Today it was announced 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 considerable player out there, owning provisioning centers, processing facilities as well as grows in several States, including Michigan. To date, this is the biggest inside the industry merger as well as 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 appear like much of anything. However, every person ought to focus. As these mergers as well as acquisitions continue, the effect will certainly trickle to the smaller, solitary State or solitary location players. The key to long term survival and guaranteeing the very best possibility of making money 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 work together, with legal guarantees as well as obligations. If that interests you, we can help. Give our office a call
as well as set up a meeting to review all of your choices.
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Thursday, July 1, 2021
As Cannabis Industry Grows, So Do the M & A Numbers
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