2019: A Year Of Cannabis M&A Deals

Anyone who closely follows the cannabis industry knows that it is experiencing unrivaled growth.

The year is set to end with a 31.7% increase in annual legal cannabis sales, bolstered by new regulation, improved policy and an overall strive for entrepreneurship, according to a New Frontier Data study. 

Not only that, legalized U.S. cannabis sales are expected to hit a whopping $13.6 billion by the end of the year.

The industry is hot with merger and acquisitions that follow deals such as Aurora Cannabis Inc ACB's purchase of MedReleaf and Altria Group Inc MO's investment in Cronos Group Inc CRON. 

At the Benzinga Cannabis Capital Conferences, making deals is a top priority. Before you attend and network with companies and investors alike, check out some noteworthy mergers and acquisitions in 2019.

Medicine Man/Starbuds

Earlier this month, Medicine Man Technologies Inc. MDCL purchased several stores from Starbuds, one of Colorado’s largest and most reputable dispensary chains, for $31 million and stock shares.

But it doesn’t stop there. Later that week, Medicine Man announced the acquisition of Colorado Harvest Company, a chain of three dispensaries in Denver and Aurora, for $12.5 million.

The chain of events unfolded soon after Colorado passed a bill allowing public companies to hold ownership in other cannabis companies.

Cresco Labs/Origin House

In April, vertically integrated multistate operator Cresco Labs Inc. CRLBF purchased Origin House ORHOF for $823 million.

This merger will combine Cresco’s scale and portfolio with Origin House’s distribution footprint in the largest cannabis market in the world: California.

Through the acquisition of Origin House’s 500 dispensaries, this deal reinforces a leading market share and 60% market penetration, according to company data.

Want to hear more from Cresco? Come listen to CEO Charlie Bachtell’s keynote Oct. 22.

Harvest Health & Recreation/Verano Holdings

Arizona-based multistate operator Harvest Health & Recreation, Inc. HRVSF is set to acquire Verano Holdings for $850 million in a massive all-stock deal.

This was the largest U.S. cannabis deal in the history of the industry and covers 16 states and 200 facilities. 

At the Benzinga Cannabis Capital Conference, entrepreneurs, executives and investors are given the tools and resources to learn about advancements in the space and network with the individuals driving it forward. Make sure to grab your tickets before they sell out!

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