No, this isn’t a technological article about how to better grow cannabis, or a brand-new hydro system. The cannabis industry is proliferating. With legalization in Canada taking complete effect on October 15, 2018, and more cannabis legalization measures on ballots across the USA, the stigma on the industry is diminishing, 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 know these days about the growth and also trajectory of the industry.
Mergers & Acquisitions
Certainly, as the industry grows, bigger players in the marijuana market, and also 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), acquired a part of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking prospective partners in various markets throughout the United States for acquisition. However, there are additionally inner industry mergers taking place too. Today it was announced that MedMen has acquired PharmaCann for $682 Million dollars in an all stock offer. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a substantial player in the marketplace, having provisioning centers, processing facilities as well as grows in multiple States, including Michigan. To date, this is the largest inside the industry merger and also acquisition deal yet. Expect this to continue at a fast pace as more States legalize medical and also recreational cannabis.
For the single location provisioning center, this information might not appear like much of anything. However, everybody ought to focus. As these mergers and acquisitions continue, the impact will certainly trickle to the smaller, single State or solitary location players. The key to long term survival and also making certain 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 ideal connections as well as industry know how to link with processors, growers, labs and transporters who can collaborate, with legal guarantees and also obligations. If that interests you, we can aid. Give our office a call
and set up a meeting to review all of your options.