Business & Investment

Cannabis M & A activity intensifies as investor sentiment brightens after the November elections

The cannabis merger and acquisition has become hot, with more than $ 600 million announced on Tuesday alone. This is in addition to the additional deals announced since the US presidential election last month.

Columbia Care, a multi-state marijuana operator based in New York on Tuesday Announced a definitive agreement We will acquire the privately held Green Leaf Medical for $ 240 million to expand our presence on the Mid-Atlantic coast.

Ayr Strategies in New York and Toronto, Announced Proposed $ 290 Million Acquired all shares of Liberty Health Sciences and $ 101 million of licensed New Jersey medical marijuana operators with three clinics.

The two announcements are the latest signs of increased M & A activity in North America and a slackening of capital since the November 3 vote. Clean sweep of voting initiative In 5 states.

Private Verano Holdings and Alt Med since the election Agreed to merge, And now Verano is ready to publish at Valuation of $ 2.8 billion.. Similar to financing transactions, small acquisitions have also been announced.

In addition, M & A activities are active north of the border.

Announced by Canadian Cannabis Companies Aphria and Tilray on December 16th Scheduled to merge In a transaction to create a huge international marijuana company with a total stock value of about C $ 5 billion ($ 3.9 billion).

“We are at an inflection point where the growth prospects and legitimacy of the cannabis industry are beginning to materialize,” wrote Matt Karnes, founder of GreenWave Advisors in New York City, in an email: Marijuana Business Daily on Tuesday.

“The results of this year’s elections will bring about a new legalized state market green wave. And with the incoming pro-cannabis Biden administration, Investor sentiment is increasing.

“Under these circumstances, it’s no wonder that the level of M & A goes up as we continue to acquire land to get quality assets.”

“Despite the economic uncertainties surrounding COVID-19, the industry is still in its infancy, and more M & A activity in 2021, especially if legislation is relaxed at the federal level,” Karnes said. Is expected. “

The victory of legalization of adult use in Arizona, Montana, New Jersey and South Dakota, and the victory of medical marijuana in Mississippi and South Dakota Annual sales of $ 2.5 billion By 2024 MJBizDaily Forecast.

The· Ballot box victory in New Jersey Expected to create adult use Domino effect Through the northeastern and mid-Atlantic regions.

Buy Colombia Care

The acquisition of Maryland-based Green Leaf by Columbia Care is noteworthy for several reasons.

  • Expand Columbia Care’s footsteps in four major limited licensing markets: Maryland, Ohio, Pennsylvania, and Virginia.
  • Green Leaf also has extensive wholesale operations in both Pennsylvania and Maryland, with products such as extracts and prerolls sold under the gLeaf brand.
  • In Maryland and Virginia, Columbia Care wants to leverage GreenLeaf’s online ordering and courier services through the gLeaf Marketplace platform.

In a statement, Columbia Care CEO Nicholas Vita said the deal would confirm the position of multilateral operators in these four major states. “Three of them are expected to switch from healthcare to adult use in the next 24 months.”

He said Ohio and Pennsylvania are already two of the best-performing markets for Columbia Care’s sales.

According to Columbia Care, the acquisition of Green Leaf is expected to close in the summer of 2021.

Columbia Care said it plans to maintain its entire management team at Greenleaf, including CEO and co-founder Philip Goldberg, who will join the board of directors in New York.

Ayr Strategies expands footprint

Ayr Strategies has announced that it will operate in seven states, including four adult markets, similar to the two deals announced on Tuesday. Pending transactions..

Air’s $ 101 million acquisition in New Jersey includes $ 41 million in cash and involves Garden State Dispensary, one of the 12 licensed vertical medical marijuana operators in the state. ..

New Jersey lawmakers passed Recreational marijuana implementation bill On December 17, licensed MMJ operators will be able to begin adult use as soon as it is proven in the third or fourth quarter of 2021 that they can continue to meet the demand for medical cannabis.

Acquired from Toronto-based Liberty Health Sciences, the property includes a 387-acre cultivation campus in Gainesville, Florida, with more than 300,000 square feet of production facilities in operation.

Liberty also operates 28 clinics in Florida, with seven completed, ready-to-open MMJ retail stores and seven other stores under construction. Eyre said it will spend $ 15 million to expand its growing and retail footprint.

Liberty currently employs 335 people, all expected to be held by Ayr.

“Today’s announcement represents the next step in Air’s transformation as a major multilateral operator in the United States,” Air’s CEO and Chairman Jonathan Sandelman said in a statement.

“Our strategy has always been to go deep into the best markets and target attractive assets in populated and limited licensed states, where we build a vertically integrated presence and have a big advantage. Can have sex.

“New Jersey is looking forward to becoming a leader in the legalization of adults in 2021 and working with regulators to ensure the safe and robust deployment of adult programs.

“Florida has one of the country’s most powerful and fast-growing healthcare programs and has acquired one of the largest operators in terms of store numbers.”

Jeff Smith can be reached at [email protected]

Cannabis M & A activity intensifies as investor sentiment brightens after the November elections Cannabis M & A activity intensifies as investor sentiment brightens after the November elections

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