Activity is heating up in the U.S. as the number of states that have legalized marijuana is increasing. With the cannabis market growing stronger than ever and many big players entering the field, an increase in the value of mergers and acquisitions (M&A) have taken place.
Recently, Canada s Tilray (NASDAQ: TLRY) and Aphria (NASDAQ: APHA) announced a near $4 billion merger. If that wasn t impressive enough, Jazz Pharmaceuticals (NASDAQ: JAZZ) $7.2 billion purchase of GW Pharmaceuticals (NASDAQ: GWPH) earlier in February makes it the biggest tie-up yet for the cannabis industry.
This means something.
For investors, the growing number of M&As demonstrates that the stage is set and there s money to be had. Multistate operators (MSOs) can take advantage of the ability to expand market operations and grow market share. For small and large cannabis companies, this is an opportunity for massive growth.