Cannabis Operators To Create National Brands Through M&A
There has already been much consolidation in the cannabis sector, but industry experts say there’s much more to come in the next two years, as national brands emerge via M&A among Multi-State Operators in the next two years.
Once US federal legalization happens, Brent Johnson, managing partner of the Hoban Law Group, a full-service firm that specializes in cannabis, said he expects many companies with US operations that touch the plant and are listed on the Canadian Securities Exchange and OTC Markets Group to move to the NYSE, Nasdaq and Toronto Stock Exchanges. Currently, companies that have US operations that touch the plant cannot list on those three exchanges.
Because the US government’s prohibition of marijuana makes moving products across state lines illegal, Multi-State Operators often look to M&A to build scale more quickly and cheaply than doing so organically, Johnson says.