Driving Scale in Cannabis the Silicon Valley Way

In today’s CA cannabis market everyone is scaling up as fast as possible. Licenses are being acquired, grows are being built out, manufacturing and distribution are being ramped up. Virtually every cannabis company is raising capital to pursue the opportunity and become the market leader.

In fact, there are several races going on. There are the large, vertically integrated companies trying to get really big (e.g. Cannacraft, Indus, Grupo Flor, Canndescent, Flowcana). Then there are a number of vertical markets where companies are battling for market share in their specific category: Distribution, Edibles, Craft, Carts and everything else for that matter.

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The Anatomy of a Canadian Acquisition – What’s the deal?

There has been a flurry of M&A activity in California from North of the Border in the first six months of 2018. Companies such as CannaRoyalty (4 deals), Nutritional High (2) and High Hampton (2) lead a group of over 15 companies currently hunting in CA. There is a lot of curiosity about the construct of these deals and what they mean so let’s try to clear up some of the misinformation.

One narrative being promoted by some suggests that Canada has boatloads of cash and is using it to buy companies here in CA. But the actual facts suggest otherwise. Let’s first look at the transactions closed or pending with CannaRoyalty, who has announced four deals since Jan 1.

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