Business Money News State

Marijuana M&A boom awaits, in California and beyond

After a financial drought for even some of the biggest multistate players, activity is heating up in the marijuana market just as the march toward U.S. legalization — at both the state and federal levels — picks up pace, creating a perfect environment for an M&A boom. (Associated Press)

Jazz Pharmaceuticals’ $7.2-billion purchase of GW Pharmaceuticals last week is the biggest tie-up yet for the cannabis industry. And it’s probably just the beginning.

The blockbuster deal, which dwarfs Tilray Inc. and Aphria Inc.’s $3.8-billion merger as well as Constellation Brands Inc.’s multibillion-dollar investment in Canopy Growth Corp., shows the growing interest in pharmaceutical-grade cannabinoids. With big money flowing into this market and the broader industry, it also portends more major deals ahead.

“Capital is back in the cannabis sector,” Bill Doran, a partner in Benesch’s Chicago office specializing in mergers and acquisitions, said last week.

After a financial drought for even some of the biggest multistate players, activity is heating up just as the march toward U.S. legalization — at both the state and federal levels — picks up pace, creating a perfect environment for an M&A boom. The big question now is where those deals are likely to happen.

Doran predicts California will be a key. Despite being difficult to evaluate because of the persistence of the black market, there are a lot of small, promising brands with loyal followings.

To Read The Rest Of This Article By Tiffany Kary on Los Angeles Times

Published: February 08, 2021

SHARE
RELATED POSTS
How One of the Reddest States Became the Nation’s Hottest Weed Market
NYPD memo tells officers not to stop New Yorkers smoking cannabis in public
John Legend Invests in Plus Hemp CBD Products

Leave Your Reply

*