Cannabis producers (MJ) have ramped up their production capacities to meet the anticipated demand for cannabis, as we saw in our series How Cannabis Companies Are Rushing to Expand Operations. Besides organically growing operations, cannabis producers such as Canopy Growth (CGC) and Aurora Cannabis (ACB) (ACBFF) have acquired or established several partnerships to reach a deep, wide market.
In the coming months, we expect merger and acquisition activities to stay active. Acquisitions will provide us with a perspective on the anticipated market dynamics, which will be a key to growth drivers.
Cronos (CRON) and Canopy Growth have even opted to list in the US capital markets to gain access to its investors and funds, which will support acquisition activities.
Canada is one of the first G7 (Group of Seven) countries to legalize recreational cannabis. While the success of this move will be closely watched, Canada has set the stage for other countries that are exploring the option to legalize cannabis. In the above chart, we see the vast difference between two timelines for countries that have legalized medical cannabis or are exploring the possibilities of legalizing it for recreational use. New markets will translate to opportunities for existing Canadian players who will have the expertise to take advantage of a new market.
In the coming weeks, we’ll be watching these developments closely and providing updates to our readers.