Consolidation continues to spread in the Canadian cannabis industry, with Ontario-based ABcann Global announcing plans to acquire British Columbia’s first licensed cannabis producer, Canna Farms, for 133 million Canadian dollars ($102 million).
ABcann said it will fund the deal through stock and cash.
Canadian marijuana companies raised a record amount of cash ahead of legalization in the first half of 2018 – some CA$3 billion – mostly to fund expansion, mergers and acquisitions.
More than 145 mergers and acquisitions were announced in North America in the same time frame, according to Viridian Capital Advisors, a New York firm that tracks investment activity across the cannabis sector in the United States and Canada. Most of the M&As involved Canadian companies.
ABcann and Canna Farms are two of the 114 licensed Canadian producers jockeying for position to meet demand in the legal recreational market starting Oct. 17.
ABcann’s purchase of Canna Farms is expected to close in August.