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Aphria: not impressed with Tilray merger
Seeking Alpha
OUR TAKEAWAY
The Aphria & Tilray merger on its face creates the largest publicly-traded company by revenue, however when you dig a little deeper that is not necessarily the case. When looking at just cannabis-based revenue, the company comes up short in comparison to American operators such as Trulieve or Curaleaf. That said, the merger of industry pioneers in Canada could bring about SG&A savings and synergies which may lead the combined company to generate EBITDA more reliably.
Cannabis M&A activity intensifies as investor sentiment brightens since November election
Marijuana Business Daily
OUR TAKEAWAY
MSOs Ayr and Columbia Care are attempting to acquire their way into the big leagues, both completing nine-figure transactions this past week. Ayr’s $290m purchase of Florida MSO Liberty Life Sciences values the target at a rosey 4.8x 2022E adjusted EBITDA, while Columbia Care’s acquisition of Green Leaf values the mid-Atlantic MSO at 4.8x 2021E adjusted EBITDA. The remarkable take away from these transactions is the premium that MSOs are willing to pay in order to enter new, potentially lucrative, limited-license markets.
Marijuana sales data reveal Americans bought 67% more weed to survive 2020
Leafly
OUR TAKEAWAY
Americans have already spent 67% more money on cannabis this year versus last. The increased overall industry revenue also reflects some states that have recently come online with recreational sales, such as Illinois and Michigan. With record sales in Arkansas, Colorado, California, Illinois, and more, it is no wonder the cannabis industry writ large had a strong year.
Canadian cannabis sales pick up pace to CA$270 million in October
Marijuana Business Daily
OUR TAKEAWAY
Our neighbors to the north are having a banner cannabis year of their own with legal sales reaching their zenith this past October. To add some context, when annualized and converted to USD, Canada’s $2.5 billion in sales makes the nation’s market about the same size as Colorado’s legal industry.
OUR TAKEAWAY