The cannabis industry is overdue for some big activity on the mergers and acquisitions front. In March, Harvest Health and Verano backed away from a deal that would've seen the two companies come together in the largest merger in the U.S. cannabis industry to date, valued at $850 million.
If another industry merger does come, it's likely to be much larger than that. Many cannabis companies today are valued at more than $1 billion. And with some pot stocks struggling while others are looking to expand, it may not be all that long before a deal comes together. Here are two possible mergers that could make a lot of sense.
There were already rumors circulating around a possible merger involving Aurora Cannabis (NYSE: ACB) and Aphria (NASDAQ: APHA) earlier this year. While nothing ended up materializing from those talks, I still wouldn't rule it out. These are two of the largest cannabis companies in Canada with very different things to offer one another, and both of their shareholders would benefit.