Cannabis M&A Activity At All-Time Highs With Littl
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Posted On: 05/12/2021 5:30:38 PM
Cannabis M&A Activity At All-Time Highs With Little Signs Of Slowing Down
By Andrew Ward, Wednesday, May 12, 2021 4:45 PM
Cannabis industry M&A activity continues to boom in 2021. Financial tech firm Refinitiv reported a 94% surge in M&A during Q1 2020.
The trends continued into May with such companies as Jushi Holdings Inc. (CSE: JUSH) (OTC
, Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) and Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) having announced or completed deals early in the month.
U.S. industry experts tell Benzinga that several factors could be sustaining the M&A uptick. Experts say the surge should continue throughout the year, with various sources likely playing a part.
Market confidence supported by several factors
Confidence in the market is spurring M&A activity, say several sources though the source of the uptick in confidence may vary.
Matthew Kittay, a co-chair of Fox Rothschild's mergers and acquisitions practice group, gives credit to macro-market drivers and industry-specific elements.
U.S. consumer spending and confidence play a significant role. In 2020, legal cannabis sales passed $17.5 billion in the United States, according to BDSA.
"Any industry connected to retail is a good acquisition target," Kittay stated.
He added that market leaders are emerging with cash on the balance sheets to put to work.
Full story available on Benzinga.com
By Andrew Ward, Wednesday, May 12, 2021 4:45 PM
Cannabis industry M&A activity continues to boom in 2021. Financial tech firm Refinitiv reported a 94% surge in M&A during Q1 2020.
The trends continued into May with such companies as Jushi Holdings Inc. (CSE: JUSH) (OTC
, Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) and Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) having announced or completed deals early in the month. U.S. industry experts tell Benzinga that several factors could be sustaining the M&A uptick. Experts say the surge should continue throughout the year, with various sources likely playing a part.
Market confidence supported by several factors
Confidence in the market is spurring M&A activity, say several sources though the source of the uptick in confidence may vary.
Matthew Kittay, a co-chair of Fox Rothschild's mergers and acquisitions practice group, gives credit to macro-market drivers and industry-specific elements.
U.S. consumer spending and confidence play a significant role. In 2020, legal cannabis sales passed $17.5 billion in the United States, according to BDSA.
"Any industry connected to retail is a good acquisition target," Kittay stated.
He added that market leaders are emerging with cash on the balance sheets to put to work.
Full story available on Benzinga.com
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