CRLBF - Marijuana M&A Deals Are a Mess in the U.S.
At this time last year, the cannabis industry could do no wrong. Marijuana sales growth projections were off the charts, and pot stocks were expanding their capacity and infrastructure as quickly as possible to gobble up early stage North American market share.
One of the many ways this expansion was expected to materialize, especially in the U.S., was through a flurry of merger and acquisitions (M&A). Between October 2018 and April 2019, more than a half-dozen sizable deals were announced in the United States, mostly among vertically integrated multistate operators (MSOs). These M&A deals were expected to be transformative by bolstering the retail and production presence of a number of well-known MSOs.
However, in recent weeks, many of these deals have been amended, or have flat out fallen apart.