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Using Mergers And Acquisitions To Grow Your Cannabis Company

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Mergers and acquisitions are happening fast in the cannabis industry. In 2018, Forbes predicted there would be an explosion of M&A throughout the medical marijuana industry. It turns out their predictions were right: 2019 has seen the biggest mergers in history within the cannabis sector, and the trend isn’t slowing down.

In order to understand how companies grow through M&A, let’s start with today’s biggest cannabis players.

Cannabis M&A 101: Here’s How Major Players Have Merged and Acquired 

If you want to understand how to successfully leverage M&A to grow your own cannabusiness, take some lessons from today’s top players.  

Tilray Merges with Its Largest Shareholder 

Tilray has completed multiple successful mergers, such as their recent merge with High Park. This merger allowed them to obtain a 662,000 square foot greenhouse facility. 

However, Tilray’s most notable merger was their recent merge with Privateer, which allowed Tilray to take back control of their stock prices. Before the merger, Privateer held the majority of Tilray’s stock. Vivien Azer, an analyst with Cowen and Company, told CBC News that the transaction effectively flips the control of a stock sale from Privateer to Tilray and provides Tilray more control. Specifically, the deal allows Tilray to increase its ability to manage the shares within the hands of public investors.

Aurora Buys Up The Competition 

“If you can’t beat ’em, join ’em.” That’s exactly what Aurora did during a round of mergers in 2018. 

Source: https://www.ganjapreneur.com/using-mergers-and-acquisitions-to-grow-your-cannabis-company/

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