Cannabis investors are excited about what the future holds for the industry. While 2018 saw the legalization of the plant in Canada, another marijuana gold rush is expected as the country plans to roll out legislation in October 2019 for CBD-edibles.
Representing a massive market in and of themselves, companies are taking the time to form partnerships, research products, and prepare to roll out a variety of CBD-based offerings. Arguably the top leader in this area is Canopy Growth Corp .
Besides being the worlds largest cannabis company, Canopy managed to secure a massive $4 billion investment from alcohol giant Constellation Brands to help jointly develop CBD-beverages. As it turns out, one big cannabis CEO thinks that a merger between the two companies is on the horizon.
In an exclusive interview with Acreage Holdings (TSXV: ACRG) CEO Kevin Murphy, New Cannabis Ventures reported that the CEO suspects that there’s more to come with Canopy and Constellation Brands. Acreage Holdings, which previously made news when it announced a deal with Canopy Growth where the latter would acquire Acreage for $3.4 billion.
As another multi-billion-dollar merger in the cannabis sector, the combined entity is a marriage between two of the largest power players in the Canadian and U.S. cannabis markets.
Additionally, no other cannabis company can boast as prestigious and well known of a management, board of directors, and celebrity roster as Canopy.
This includes former Canadian Prime Minister Brian Mulroney, former Speaker of the U.S. House of Representatives John Boehner, former Time Warner CEO Larissa Herda, as well as celebrity figures like Snoop Dogg, Martha Stewart, and Seth Rogan.
Should the Acreage/Canopy deal be a prelude to a much larger agreement between Constellation Brands and Canopy, it would easily cement the combined entity as the top cannabis company in the CBD-edibles space.
Shares of Acreage Holdings were the main winner today, jumping up eight percent in response to this interview and other news. Constellation Brands and Canopy both inched up less than a percent in comparison.
Canopy Growth Corp Company Profile
Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana. It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production.
It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News
Constellation Brands Company Profile
Constellation Brands produces beer, wine, and spirits and is one of the largest multicategory alcoholic beverage suppliers in the U.S.
The firm has the exclusive right to import and market several Mexican beer brands in the U.S., including the Corona, Modelo, and Pacifico brand families, and it acquired Ballast Point, a craft beer brand, in 2015.
Constellation Brands’ wine and spirits portfolio includes the Robert Mondavi, Black Box, and Clos du Bois wine brands and Svedka vodka. The firm generates over 90% of its revenue in the U.S. – Warrior Trading News