Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Cannabis Sector Mergers Gaining Momentum Again

By Investing.com (Brenda O'Farrell/Investing.com)Stock MarketsJun 08, 2021 10:54AM ET
www.investing.com/analysis/cannabis-sector-mergers-gaining-momentum-again-200584777
Cannabis Sector Mergers Gaining Momentum Again
By Investing.com (Brenda O'Farrell/Investing.com)   |  Jun 08, 2021 10:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Buzz about mergers and acquisitions in the cannabis sector is starting to catch investor attention again.

The development is being viewed as a bit of a turnaround for the industry, which has seen a major drop in headline-making corporate buyouts since the sector’s breakout in late 2017 and into 2018.

During the last month, a number of major corporate realignments have reset the momentum in the sector.

Among the major deals in May was Trulieve Cannabis' (OTC:TCNNF) $2.1-billion (C$2.54 billion) acquisition of Harvest Health & Recreation (OTC:HRVSF) (CSE:HARV). The Florida-based Trulieve bought out its state rival, extending its dominance in the market.

Also last month was Hexo Corp's (NYSE:HEXO) (TSX:HEXO) $768-million purchase of Redecan, a private Canadian licensed cannabis grower.

But the biggest deal of them all was the $7.2-billion blockbuster acquisition of British, GW Pharmaceuticals (NASDAQ:GWPH) by Ireland-based Jazz Pharmaceuticals (NASDAQ:JAZZ).

Jazz Weekly Chart
Jazz Weekly Chart

GW Pharma is regarded as a leader in the development and commercialization of cannabinoid-based prescription drugs. It is also the maker of Epidiolex, the first cannabidiol-based treatment approved by the US Food and Drug Administration for the treatment of seizures associated with epilepsy for young children.

In a statement issued by Jazz announcing the acquisition, Jazz chairman and CEO Bruce Cozadd highlighted the importance of Epidiolex:

"We are excited to welcome our GW colleagues to Jazz as we mark a transformative milestone in creating an innovative, high-growth, global biopharma leader in neuroscience with a worldwide commercial and operational footprint. The addition of GW further diversifies our commercial portfolio and innovative pipeline with therapies that are complementary to our existing business, including Epidiolex, a high-growth commercial product with near-term blockbuster potential.”

Tilray And Sundial Make Impressive Gains

Building on the wins for the sector in May, June continued to show itself as a good month in much of the cannabis sector.

Two cannabis companies in particular faired very well, posting double-digit increases in their stock valuations since the beginning of the month—Tilray (NASDAQ:TLRY) (TSX:TLRY) and Sundial Growers (NASDAQ:SNDL).

As of Monday’s close, Tilray shares were up just over 13.5% so far this month. Yesterday alone, the Canadian-based cannabis grower, that just closed its merger deal with Aphria, gained almost 5%.

Despite the latest one-day hike, it still was not the best performer in the sector on Monday. That honor went to Cronos Group (NASDAQ:CRON) (TSX:CRON), which saw its shares rise 5.23% on the day to close at $9.06 on a reported 34.1 million shares traded.

Over at Sundial Growers, stock gains have been even more impressive. The medicinal marijuana producer that grows a wide variety of cannabis strains has a market cap of $2.03 billion (C$2.45billion).

It has seen its stock climb throughout the month of June. In the early days of the month, its shares were up almost 25%, but some of those gains were shaved off. The stock closed yesterday at $1.16, up 10.4% for the month overall.

The sector is buoyed by a number of factors. Increasing momentum that is whittling away on regulatory hurdles in the US is certainly one. But positive headlines like the announcement last week by e-commerce giant Amazon (NASDAQ:AMZN) that it would support a US federal bill to legalize cannabis and make adjustments to its corporate drug screening policy, certainly appears to have had an effect.

Cannabis Sector Mergers Gaining Momentum Again
 

Related Articles

Cannabis Sector Mergers Gaining Momentum Again

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Fernandez Lory
Fernandez Lory Jun 09, 2021 11:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pls help me my family all quarntne home I need food and phillppnes
Gene Kret
Gene Kret Jun 08, 2021 5:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Pot stocks will crash next month when Biden declares he will not change the Federal standing on pot. Make no mistake that the states are can render pot a source of tax income, but the Feds will not budge for the next 4 years.
herman fernandez
herman fernandez Jun 08, 2021 5:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why do tou think he wont change it, its time for ithe goverment to get witb the program.
M Asgher M Asgher
M Asgher M Asgher Jun 08, 2021 1:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
please help me mam I am pakistani boy I need your help
Zoran Petrovic
Zoran Petrovic Jun 08, 2021 12:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
treba mi 1000000€
SALIM MUSA MUHAMMAD
SALIM MUSA MUHAMMAD Jun 08, 2021 12:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello brenda how are you doing
Shawn Gachassin
Shawn Gachassin Jun 08, 2021 12:07PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Salim want that redhead bush
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email