We have previously analysed the cannabis sector in these posts, where we have presented the countries where there are most startups dedicated to this sector and the reasons for this, as well as the investment trends in the market in recent years. This time, we will see which have been the acquisitions The most relevant developments in this extremely emerging market and a brief analysis of the leading company in the sector, Aurora Cannabis, will be presented.
This is a sector that has seen tremendous growth in recent years, having received more than $12 billion in financing in just over five years. In terms of acquisitions, 2018 was the year with the most M&As in the market, with a total of 59 acquisitions of companies dedicated to the sector in just one year. Within the sector, Aurora stands out for its leadership.
The most recent M&A deal, and the most highly valued, was the acquisition of Acreage Holdings by Canopy Growth. Acreage Holdings is a listed Canadian company based in British Columbia that acts as a holding company for a variety of companies involved in the cannabis market, whether they are cultivation, processing or marketing companies. Similarly, Canopy Growth is another Canadian company involved in the research, development and marketing of cannabis-based products. Both companies had a great relevance in the market and thanks to this acquisition, among other operations, Canopy Growth has become one of the leading companies in the market.
Another major acquisition in the sector has been that of MedReleaf- another Canadian research and development company - by Aurora Cannabis. This transaction took place in May 2018 and was valued at USD 2.5 billion.
Today, Aurora Cannabis is the leading company in the cannabis sector, followed by the aforementioned Canopy Growth. This company, like all those mentioned in this post, is Canadian, based in the city of Edmonton. It is listed on the Toronto Stock Exchange and New York Stock Exchange and operates in 25 countries.
It produces around 625,000 kilos of cannabis per year in Canada. However, it exports most of its production, with Denmark and Latin America being the main destinations.
▶You may be interested in: Trends in financecation of the cannabis sector by geographic area.