The marijuana stock market has been growing with a massive amount of propensity. In only a few short years, we have seen the industry grow into the billions of dollars in revenue. With so much competition in the pot stock, partnerships seem like they would be few and far between. This, however, is not the case. Many of these cannabis stocks to watch are solid alternatives to the more traditional marijuana stocks that people are viewing.
Many of the largest companies in the industry have turned to acquisitions as a way to fuel more growth. These acquisitions could be anything from growth partnerships, to joint product developments. With so many companies taking this on as an option, it seems like the most popular way to continue building a business.
What Acquisitions Can do for a Marijuana Stock
Acquisitions in the marijuana stock space have become the norm. Many companies have signed into multi-billion deals to bring new and innovative products into the market. With these companies being some of the largest in the industry, it’s clear that acquisitions won’t be slowing down anytime soon.
Canopy Growth Corp. (NYSE:CGC) completed one of the first, and largest deals in the whole of the industry. The company struck a multi-billion dollar deal with Constellation Brands (NYSE:STZ) to begin the development of cannabis infused beverages. These beverages have become a hot topic amongst the marijuana market as the potential demand is huge. This was one of the largest deals at the time, and today stands at the top five in the whole of the marijuana stock market.
Aleafia Health (NASDAQOTH:ALEAF) is another company that has been notable for their acquisitions. The company recently acquired Emblem, a massive marijuana producer, to begin a joint effort of marijuana production. This saw the two begin efforts to producing some of the largest quantities of cannabis in the whole of the market.
Both of these companies have something in common. They both stand to reside in the Canadian marijuana stock market. Canada has been a hotbed for cannabis mergers and acquisitions as their legal system is much more conducive to the deals occurring. In the U.S., legislation is a large barrier for companies. This is not to say that we haven’t had the same amount of deals, but it is definitely with much less frequency.
What Can the Marijuana Stock Market Look Forward To?
With over 50 publicly-traded marijuana stocks currently listed in Canada alone, the marijuana market is growing with tremendous frequency. As we continue to move toward the future of the industry, the hopes are that more of these mergers can occur. Mergers and acquisitions like the ones mentioned above help to bring the industry into the future. With so many deals occurring and so many new products hitting the market, there’s no telling how far it could go.
Marijuana stocks continue to bring in a growing investor base. Only time will tell how much the market can grow amidst fervent competition throughout both the U.S. and Canada. For now, things continue to look up in the market.