CORAL GABLES, FL / ACCESSWIRE / August 8, 2018 / The marijuana market has offered investors a new opportunity for what many are calling “the green rush”. But not every marijuana stock will be a smart investment as some are already finding out during these early days of growth. A new trend that investors are looking at is one of a mergers and acquisitions approach.
Not all cannabis companies can afford to get involved in such an undertaking but for a fragmented industry like cannabis, a roll-up strategy is proving to be beneficial for the companies that can complete these transactions. Not only has it allowed cannabis businesses to expand a national footprint but also an international footprint mainly with companies in Canada.
In a little over two 60 days, the date Canadian cannabis investors have long been waiting for will finally be here. On October 17, recreational marijuana will officially go on sale in the country, which follows the passage of the Cannabis Act in June. Canada will become the first industrialized country in the world to allow adults to legally purchase marijuana. With this, here are 3 marijuana stocks taking advantage of the new mergers and acquisitions strategy within the industry.
Market Cap: $39,044,678
Beleave Inc. (BLEVF) is getting involved in the growing legal cannabis industry by taking up a strategy that some of the larger cannabis companies are enlisting. This is an M&A strategy. Beleave has already wrapped up a number of companies into its portfolio including Medi-Green, Seven Oaks Inc., as well as a majority stake in Procannmed S.A.S. based in Colombia’s quickly growing market.
In addition to this, Beleave announced this week that it will be opening two new Medi-Green stores which will be located in London, Ontario and Montreal, Quebec. Furthermore, the company said that in late-September, Medi-Green would be opening the London store. With approximately 1500 sq. ft. of space and onboarding will begin on September 3rd.
The Company has filed a patent application in the United States and Canada for this extraction method, which involves the activation, purification, and extraction of cannabinoid active ingredients.
This method delivers high purity and yields of cannabinoid compound using a process that is scalable and efficient and has been approved by Health Canada to be implemented for cannabis oil production.
Canopy Growth Inc. (NYSE:CGC)(TSX:WEED.TO)
Market Cap: $5,267,928,609
In line with Beleave, Canopy Growth has also taken a strong stance in strategic investment and acquisition strategy. Outside of this strategy, the company is also expanding into a multitude of related business within the cannabis industry. This morning Canopy announced that approval has been received from the Veterinary Drug Directorate of Health Canada to research the effectiveness of cannabidiol or “CBD” to treat anxiety in certain animals.
In previous months, the company announced expansion on a global scale with the acquisition of Spectrum Cannabis Colombia S.A.S thought its subsidiary, Canopy LATAM. In the company’s words, “This announcement represents a leap forward in the Company’s growth strategy for its industry-leading Spectrum Cannabis brand. As a member of the Canopy Growth family, Canopy LATAM will focus on advancing medical cannabis and capturing market share across the region, home to more than 600 million people, as individual nations modernize their medical cannabis legislation.”
Aurora Cannabis, Inc. (OTCQX:ACBFF)(TSX:ACB.TO)
Market Cap: $2,636,987,847
Finally, Aurora, similar to the above has also taken a mergers and acquisitions approach to expanding into the cannabis industry. Like Beleave Inc, it is also listed as an OTCQX company.
This week Aurora announced that along with Alcanna Inc. ( CLIQ.TO ) the companies have reached a license agreement whereby Alcanna has been given exclusive rights to open retail cannabis stores under the brand name “Aurora” across Canada. Alcanna’s position as the biggest private sector liquor retailer in Canada aligns with Aurora’s position as one of the world’s leading cannabis companies.
In addition, Aurora also announced that it has signed a letter of intent to acquire the cannabis business of HotHouse Consulting Inc., which supports about 50 customers globally. Upon the transaction’s close, HotHouse founder Laust Dam will become vice president of horticultural development for Aurora Larssen Projects.
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Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. MAPH Enterprises LLC which owns www.MarijuanaStocks.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release.
MAPH Enterprises LLC, which owns www.MarijuanaStocks.com , may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. MAPH Enterprises LLC, which owns www.MarijuanaStocks.com , may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC, Midam Ventures LLC and Beleave Inc., Midam has been paid $200,000 from the company and ZERO shares of Beleave Inc. for a duration of 6 weeks beginning June 18, 2018, and ending July 31, 2018, NOW EXTENDED TO 8/10/2018. We may buy or sell additional shares of (BLEVF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Full Disclaimer Here