No, this isn’t a technical article about just how to better grow cannabis, or a brand-new hydro system. The cannabis industry is proliferating. With legalization in Canada taking full effect on October 15, 2018, and also much more cannabis legalization measures on ballots throughout the United States, 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 recognize these days concerning the development and trajectory of the industry.
Mergers & Acquisitions
Obviously, as the industry grows, larger players in the cannabis market, as well as outsiders, will certainly be coming in to obtain companies throughout the cannabis industry. In recent days, Constellation Brands (the parent Company of Corona and Modelo Beers), acquired a section of Canopy for 5.4 Billion Dollars. Cigarette manufacturers are seeking possible partners in various markets throughout the USA for acquisition. Nevertheless, there are additionally internal industry mergers happening also. Today it was introduced that MedMen has bought PharmaCann for $682 Million dollars in an all stock bargain. (https://mjbizdaily.com/medmen-inks-blockbuster-682-million-stock-deal-to-acquire- medical-cannabis-firm-pharmacann/) PharmaCann was a substantial player on the market, possessing provisioning centers, processing facilities and grows in multiple 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 even more States legalize medical as well as recreational cannabis.
For the single location provisioning center, this information might not look like much of anything. Nevertheless, everyone must focus. As these mergers and also acquisitions proceed, the effect will certainly trickle to the smaller sized, solitary State or single location players. The key to long-term survival and also making sure the best possibility of profiting from a future merger or acquisition possibility: enter into a vertical integration chain.
To do that, you need to have the best connections and also industry know how to link up with processors, growers, labs and also transporters that can work together, with contractual guarantees as well as obligations. If that interests you, we can aid. Give our office a call
as well as set up a meeting to go over all of your options.