The Cannabis Bonanza has Just Begun
CannabisNewsWire Editorial Coverage
DENVER, April 23, 2019 /PRNewswire/ -- The cannabis industry presents a rare opportunity to profit from spectacular growth in a virtually untapped market.
- Legal marijuana market projected to reach $146.4 billion.
- United States and Canada current epicenter of cannabis growth.
- Brand recognition and retail reach imperative for market share.
Capturing market share and creating long-term success in this explosive market will require brand recognition and retail reach. Shortly after posting its tenth consecutive quarter of increased revenues, Wildflower Brands Inc. (OTC:WLDFF) (CSE:SUN) (WLDFF Profile) announced intentions to further expand its footprint with the acquisition of premier licensed cannabis retailer, City Cannabis Corp. A finalized accretive acquisition will add significant revenues to Wildflower, providing access to several valuable cannabis licenses in lucrative premium locations. Other companies in the sector are looking to grow in the market through other promising ways. Tilray Inc. (NASDAQ:TLRY) recently acquired Natura Naturals Holdings, boosting capacity to supply cannabis products across Canada. Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) bought hemp company AgriNextUSA to accelerate entry into key American jurisdictions. Medmen Enterprises Inc. (CSE: MMEN) (OTC:MMNFF) announced the purchase of two vertically integrated operations, which include retail locations and 25,000 square feet of cultivation and production capacity. And only two weeks ago, Curaleaf Holdings Inc. (OTC:CURLF) (CSE:CURA) completed the acquisition of Eureka to provide access to California's wholesale market through a large greenhouse facility.
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The sweeping growth of the cannabis industry is rooted at least in part from a groundswell of public support that has turned into a tidal wave of acceptance. Fifteen years ago, only a third of Americans supported federal legalization of marijuana. About two-thirds of Americans now support legalization, up from only 54% two years ago. Among adults under age 35, a whopping 85% favor federal legalization. The movement gained so much momentum so fast that the industry is scrambling to keep up. As the cannabis industry and markets mature, acquisition and consolidation deals appear to be all but certain.