This year has seen significant cannabis market consolidation—largely driven by Canada’s nationwide cannabis legalization in October—as companies look to expand their global geographical footprints and gain market share. Even small companies are looking to expand their reach or be acquired to gain access to larger companies’ infrastructure and compete in an increasingly competitive industry.
In November alone, we’ve seen Dixie Brands Inc. and Academy Explorations Limited (a reporting issuer in Ontario) complete a reverse takeover transaction (following Dixie’s close of its Series C fundraising round of approximately $25 million), forming a Delaware-incorporated operating company named, ultimately, Dixie Brands Inc. The move comes as Dixie Brands plans to expand beyond its current four-state operations “into four to six additional states in 2019 through partnerships with licensed and regulated producers in each state,” according to the company’s press release.
Edmonton, Canada-based Aurora Cannabis, a major player on the global cannabis field, has