Consolidation continues to unfold within the Canadian hashish business, with Ontario-based ABcann Global saying plans to acquire British Columbia’s first licensed hashish producer, Canna Farms, for 133 million Canadian dollars ($102 million).
ABcann stated it is going to fund the deal via inventory and money.
ABcann and Canna Farms say they’ll have a mixed manufacturing capability of 12,400 kilograms (27,337 kilos) of hashish by the top of this yr and paid-for capability of roughly 57,000 kilograms by mid-2020.
Canadian marijuana corporations raised a document amount of money forward of legalization within the first half of 2018 – some CA$three billion – principally to fund enlargement, mergers and acquisitions.
More than 145 mergers and acquisitions have been introduced in North America in the identical time-frame, in accordance to Viridian Capital Advisors, a New York agency that tracks funding exercise throughout the hashish sector within the United States and Canada. Most of the M&As concerned Canadian corporations.
ABcann and Canna Farms are two of the 114 licensed Canadian producers jockeying for place to meet demand within the authorized leisure market beginning Oct. 17.
ABcann’s buy of Canna Farms is predicted to shut in August.