Cannabis companies are getting bigger all the time. Many of these companies are publicly-traded- Canopy Growth (CGC), Medicine Men Tech (MDCL), Aphria (APHA)-- just to name a few. As we are watching conglomeration happening in the cannabis industry, antitrust regulators are looking especially closely at recent mergers and acquisitions and the long-term trajectory of these companies, and the market share they stand to control.
The question is, how big is “too big” for a cannabis company?
Is it when one company controls several vertically integrated licenses across 12 states – as in the case of Curaleaf (CURLF)? Is it when one company is awarded the sole distribution license to for an entire country – as was the case with Aurora (ACB) in Italy?
First reported by Nick Thomas of MJBizDaily, U.S. Department of Justice regulators are specifically looking at deals involving Harvest, Inc. and Cresco Labs.
What does this mean for our heavily-regulated industry? How could potential Dept. of Justice action potentially impact your cannabis portfolio? Do you think this move by regulators is good for the rest of us if the big boys are put in check? Let’s chat big canna today.