Savvy Companies Make Acquisition Moves in Booming Cannabis Industry

DENVER, Feb. 19, 2019 /PRNewswire/ -- As the cannabis sector consistently shows impressive growth, acquisitions within the market allow cannabis companies to develop greater vertical integration.

     - Cannabis companies are looking to acquire other organizations to strengthen specialist knowledge and skills.

     - Similar moves have led to impressive success in industries such as coffee production.

     - The strength of the cannabis market is also attracting other additional investment.

Youngevity International Inc. (NASDAQ:YGYI) (YGYI Profile) is following the vertically integrated model, having recently acquired a company specializing in cannabis processing machinery. Canopy Growth Corporation (NYSE:CGC) finalized an all-cash transaction to acquire one of the world's most technologically advanced vaporizer companies. In an all-stock option, Aurora Cannabis Inc. (NYSE:ACB) agreed to purchase a British Columbia-based craft grower, which offers premium organic products produced at low volumes. Late last year, MedMen Enterprises Inc (OTC:MMNFF) signed a definitive agreement for the acquisition of one of the largest medical cannabis providers in the United States. And with the cannabis sector as a whole seeing healthy growth, GW Pharmaceuticals Plc (NASDAQ:GWPH) recently completing a public offering to fund further growth, raising $345 million to expand its cannabis-oriented pharmaceuticals work.

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Cannabis Companies Turn to Vertical Integration

The global cannabis industry continues to grow — especially in the United States and Canada — creating promising opportunities for companies eager to find ways to improve their productivity and leverage their strengths. A wide range of companies covering the production, processing, marketing, and sales of cannabis and cannabidiol (CBD) products are vying for a position in the space. Consequently, smart organizations are looking for ways stand out from the rest.

Many are opting for vertical integration. Their strategy is simple and straightforward — by bringing together production, processing and distribution, companies can cut costs, improve efficiency and ensure quality control.

Acquisitions for Growth

This all-under-one-roof strategy is one that the management at Youngevity International Inc. (NASDAQ:YGYI) not only believes in but has successfully applied. A leading omni-directional lifestyle company, Youngevity recently moved into the cannabis sector through investment in CBD.