This week, Aurora Cannabis bought rival Cannimed Therapeutics for C$1.1 billion ($852 million).
That makes Canada’s Aurora Cannabis world’s top marijuana producer by market value.
Current growers know that billions of dollars and increasing normalization of cannabis means bigger players will attract new players with deep pockets.
Bruce Linton, CEO of Canopy Growth, sees a future that looks like this:
“Over the long term, I see an industry with two or three major, relevant players and a bunch of craft producers.”
We’re excited for more competition at every level of this new market and here’s why:
(1) Competition drives innovation. New growing technologies and advancements in THC extraction methods ultimately means greater efficiency and lower costs per gram for consumers. Keep in mind one of the key stated objectives of legalization is to price the black market out.
(2) Craft producers drive choice. Allowing craft producers to participate in the cannabis marketplace means two great things: more choice for consumers, and more opportunities for entrepreneurs.
Watch for more consolidation deals in the coming weeks and months as Canada’s growers jostle to become the biggest weed dealer in the world.