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Aphria: not impressed with Tilray merger
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
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
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 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.
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Cannabis is more accessible than ever with 1 in 3 Americans living in states where recreational adult-use is legal, and cannabis is popping up more often in everyday American life. Cannabis operators are rushing to capture the opportunity presented by this newly budding "cannabis awareness." A Harris Poll commissioned by MSO Curaleaf finds not only a general increase in cannabis consumption, but a marked increase in people replacing alcohol with cannabis. In particular, parents have been putting down alcohol and picking up cannabis. The survey found that more than half (57%) of parents with children under 18 who have ever consumed cannabis have reduced or replaced their alcohol consumption with cannabis since the start of the pandemic.