A recent Forbes article wrote that cannabis producers should expect to see pharmaceutical companies move toward mergers and acquisitions with the smaller operators as the corporations look for new ways to grow their business.
Toronto lawyer Jacob Cawker wrote that the same may happen in this country, with independent licensed producers currently set to enter the lucrative recreational market.
“Analysts are predicting a high level of M&A activity in this space,” Cawker wrote. “The industry is currently comprised of many small players, which makes it attractive for bigger and more established corporations.”
Canker stated that, in 2014, data from the cannabis industry showed 33 acquisitions took place, with more expected.
“There are a few weeds that need to be pulled out before it can flourish into its full potential; one such obstacle is full legalization, or at least an established and stable regulatory framework,” Cawker wrote. “Licensed producers will continue to be exclusive large-scale producers of cannabis under the ACMPR. The ACMPR may therefore provide some comfort to industry players that regulated medicinal marijuana is here to stay.”