In a mature cannabis landscape, mergers and acquisitions are a key instrument for building out an expansion strategy.
By mid-2021, consolidation in the marijuana industry reached an all-time high with little signs of slowing down, as more states come online and companies look for ways to enter new markets and build larger sources of revenue.
In a live panel at the Benzinga Cannabis Capital Conference in New York City, Tom Zuber, managing partner of Zuber Lawler, spoke with key leaders in the cannabis industry about the role of M&A in the sector today.
Creating A New Industry Landscape With M&A
Launched just three years ago, Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) had to be built on the foundation of M&A, says Olivier Blechner, the company's executive vice president of business development.
“We’ve executed more than a double-digit number of transactions that have gotten us into an extremely interesting state to be in,” says Blechner.
His company has a strong presence in Pennsylvania, Virginia and Illinois and recently closed acquisitions in Massachusetts while also becoming vertically integrated in Nevada with the purchase of The Apothecarium.
“The Parent Company itself was brought together around an idea of consolidation,” says Steve Allan, head of corporate development at The Parent Company (OTCQX: GRAMF) (NEO: GRAM.U).
His firm was launched as a SPAC (a special purpose acquisition company) that raised over $300 million to acquire three manufacturing facilities in …