NetworkNewsWire Editorial Coverage: Merger and acquisition (M&A) activity in the cannabis industry is heating up, and market analysts point to several important factors contributing to increased activity. Profit is always a central issue, and as the founders of companies established years ago seek attractive exit strategies, new players are considering ways to enter the field in a profitable way. The rapid evolution of technology and its increasing application also serve as catalysts for M&A, as larger companies pursue opportunities that are positioned for current or near-term commercial availability. Such expertise and assets developed by smaller brands could potentially turn them into attractive targets for M&A activity. Lexaria Bioscience Corp. (OTCQB: LXRP) (LXRP Profile) is one such potential target due to its proprietary technology for improved taste, rapidity and delivery of bioactive compounds, including cannabinoids. Other industry reps that have made valuable contributions to cannabis product development include Canopy Growth Corp. (OTC: TWMJF) (TSE: WEED), Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB), Radient Technologies, Inc. (CVE: RTI) and Hemp, Inc. (OTC: HEMP).
As Canada prepares to legalize the recreational use of marijuana next summer, the push for M&A becomes even greater. Since the beginning of the fourth quarter of 2016, an average of approximately 3.2 deals have been closing per week well into 2017 (http://nnw.fm/vC8CU). In comparison, the average for the same period one year ago was approximately 1.4 deals. Analysts note an increase in interest from Canadian companies that wish to cross the border to become a part of the U.S. cannabis industry.
Read the full article
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
Merger and Acquisition Activity is Heating Up in the Cannabis Industry
