No, this isn’t a technological article about just how to better grow cannabis, or a brand-new hydro system. The marijuana industry is growing rapidly. With legalization in Canada taking complete effect on October 15, 2018, and more marijuana legalization measures on ballots across the United States, 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 tell you all you need to know these days concerning the development and trajectory of the industry.
Mergers & Acquisitions
Certainly, as the industry grows, bigger players in the cannabis market, and also outsiders, will certainly be coming in to obtain companies throughout the marijuana industry. 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 different markets throughout the USA for acquisition. Nonetheless, there are likewise interior industry mergers taking place too. Today it was introduced that MedMen has actually acquired PharmaCann for $682 Million bucks in an all stock offer. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a significant player in the markets, having provisioning centers, processing facilities as well as grows in numerous 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 more States legalize medical as well as recreational cannabis.
For the single location provisioning center, this news may not feel like much of anything. Nevertheless, everyone needs to focus. As these mergers and acquisitions proceed, the impact will trickle to the smaller sized, solitary State or solitary location players. The key to long term survival and making certain the best possibility of making money from a future merger or acquisition possibility: enter into a vertical integration chain.
To do that, you need to have the ideal connections as well as industry know how to link up with processors, growers, labs as well as transporters that can interact, 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 options.
As Cannabis Industry Grows, So Do the M & A Numbers