Cannabis companies are on an acquisition spree
Cannabis companies are on an acquisition spree, and companies have made vertical and horizontal acquisitions within the industry. Given that recreational marijuana legalization in Canada is just a few months away, acquisitions are the fastest way to grow in size to capture market share. In our series Cannabis Players and Their Business Combinations, we discussed some of the acquisitions and partnerships within this sector (MJ).
The biggest players
As the above chart shows, with the acquisition of CanniMed Therapeutics for 1.1 billion Canadian dollars, Aurora Cannabis is already the number two cannabis producer in Canada after Canopy Growth (WEED). MedReleaf (MEDFF) is number three on the list. If Aurora Cannabis (ACB) (ACBFF) and MedReleaf were to combine, they would have a sizable share in the recreational and the medical use market in Canada and abroad.
Currently, Aurora Cannabis has about 2 million square feet of capacity in the pipeline, which is expected to be completed by the third quarter of 2018, while MedReleaf has about 1.3 million square feet of capacity, which is expected to come online by the end of 2018. If these two companies were to combine, the total capacity of about 3.3 million square feet would stack up against 5.7 million square feet for Canopy Growth.
Read more at How Cannabis Companies Are Rushing to Expand Operations.