Marijuana merger and acquisition activities are accelerating in 2022 owing largely to continued pressure on larger MSOs to boost revenue and expand their footprint. Most marijuana companies now realize it is essential to partner same-sized-businesses to enhance competitiveness. Here are some of the most notable acquisitions to occur in the cannabis industry recently.
Etain Health Acquired by RIV Capital for $247 Million
Etain Health dubbed this multimillion deal the most significant transaction for women-owned businesses in cannabis history. The company is among the only ten operational in New York and is working on penning an agreement with RIV Capital.
The deal gives ownership and control of the vertically integrated business to Etain. The acquisition is underway and still waiting for approval from the New York State Office of Cannabis Management and the New York Cannabis Control Board.
The payment terms are $212 million in cash with $35 million in common shares from RIV Capital. You can find more information about the deal from Etain’s announcements.
Jushi Closes Acquisition of Apothecarium Dispensary in Las Vegas
After closing a recent acquisition with the Las Vegas marijuana dispensary, The Apothecarium, Jushi is now a fully integrated operator in Nevada. The deal allows the dispensary to pair with Jushi’s earlier acquisitions with Franklin Bioscience NV.
The former holds cultivation, processing, and distribution licenses. Jushi is looking forward to closing another deal with NuLeaf, Inc. in the second quarter of 2022 to execute strategic growth in Nevada. The three acquisitions from the exact location unlock new wholesale opportunities in the broad market.
Cresco Labs Targets $2B Acquisition of Columbia Care
The M&A shook the world’s marijuana industry as it involved the two most established and vertically integrated cannabis companies worldwide. Chicago-based Cresco Labs Inc. is working closely with New York-based Columbia Care to acquire its assets in a deal estimated at roughly $2 billion.
Once it closes, Cresco will acquire all Columbia Care’s published areas. According to Cresco, the deal should close during the fourth quarter of 2022. The acquisition will involve the largest price tags in the marijuana industry, rivaling the largest Trulieve’s $2.1-billion deal used to acquire Harvest Health in 2021. Looking at the closing stock prices of March 22, 2022, both Cresco and Columbia Care have $2.94 billion in combined market cap. This puts them behind Trulieve ($3.53 billion), Green Thumb Industries ($4.28 billion), and Curaleaf ($4.78 billion).
Aurora Cannabis to Acquire TerraFarma, Owner of Thrive Cannabis
Aurora Cannabis is a giant in the Canadian cannabis market and recently announced a new plan to acquire TerraFarma, the parent company of Thrive Cannabis. The deal gives Aurora all TerraFarma’s issued and outstanding shares, capped at $38 million in cash and Aurora shares.
The deal is expected to close in the fourth quarter of Aurora’s 2022 fiscal year. This is crucial as it will help boost Aurora’s profitability in the first half of the 2023 fiscal year. Aurora wants to place the Thrive team in charge of its Canadian adult-use portfolio while focusing on other products like pre-rolls, dried flowers, concentrates, and vapes.
Schwazze Closes Acquisition of Denver Grower Brow 2
Schwazze is working on a new deal and has already signed all the definitive documents to acquire Urban Health & Wellness Inc. assets. The proposal includes the adult-use Urban Dispensary in Denver’s vibrant Highlands neighborhood, with a 7,200-square-foot indoor cultivation facility in the same region.
Schwazze requires this purchase to continue its aggressive expansion in Colorado. Upon closure, it will increase the company’s number of dispensaries to 23 and grow facilities to four in the Colorado area.
The proposed acquisition is $3.2 million with payment terms, including $1.3 million in cash and $1.9 million in stock at closing. The company is working to close the deal by the second quarter of 2022 after they gain approval from the Colorado Marijuana Enforcement Division and local licensing.
If you are looking to find out more about acquisitions by larger companies and how your business can be more attractive to them, contact Navvee. We can help you understand how to become an MSO worthy acquisition target.