Topic: Cannabis

Aspirin, Toothpaste and Cannabis, Please

By Adamo Fucile on June 27, 2022 Posted in Cannabis

Man in white lab coat inspecting cannabis bud in field

Since Canada’s legalization of cannabis, the cannabis sector has been a steady source of M&A activity. However, as the novelty of legalization wears off and with the continued stabilization of product demand, market participants have begun evaluating new opportunities and implementing creative M&A strategies to continue their growth in the Canadian market. One recent example … Continue reading

Cross-border Deal Structures in the Cannabis Sector

By Andrea Brewer and Shahroz Ahmad on March 29, 2022 Posted in Cannabis

Sunshine on close-up of cannabis plant leaf

Cannabis-related cross-border transactions have become more creative since the initial wave of transactions that occurred post-legalization in Canada. Changes in the US federal law enforcement policy, coupled with the Toronto Stock Exchange (the TSX) and the TSX Venture Exchange (the TSXV) clarifying their positions on listed issuers that are involved in marijuana-related activities in the … Continue reading

A Slow Burn: The Cannabis Sector May be Ready for Market Consolidation

By Brandon Schupp on January 19, 2021 Posted in Cannabis, M&A

The first half of 2020 saw a significant decline in M&A activity as capital markets were impacted by the COVID-19 pandemic, but the second half of the year saw a surge in M&A activity that is expected to continue into 2021. One industry that may be particularly well primed for M&A activity in 2021 is … Continue reading

“Weeding out the competition” – an update on M&A activity in the cannabis sector

By Troy Ungerman (Toronto) on August 21, 2019 Posted in Cannabis, M&A

As discussed in previously, the legalization of cannabis in October 2018 sparked a flurry of activity in the Canadian market, as both foreign and domestic investors were eager to enter the space. Notably, in 2018, M&A transactions peaked with over 700 deals completed in the cannabis sector, the total value of which exceeded US$12 billion. … Continue reading

Spreading like weeds: alternative cannabis products are on the way!

By Troy Ungerman (Toronto) on June 13, 2019 Posted in Antitrust, competition and regulatory, Cannabis, M&A

As we have previously discussed, Canada has positioned itself as a global leader in the cannabis space. That trend is set to continue on October 17, 2019, when it is expected that alternative cannabis products, which include edibles, infused beverages and topicals containing cannabis and cannabis concentrates will be legalized in Canada. The sale of a new and wider … Continue reading

Health Canada changes cannabis licensing process

By Troy Ungerman (Toronto) on May 16, 2019 Posted in Cannabis, M&A, Pharmaceuticals and life sciences

On May 8, 2019, Health Canada announced that it is introducing changes to its cannabis licensing process, effective immediately. Before the change, an applicant can apply for a cannabis license by submitting paper application to Health Canada without having to build a facility first. Now, a new applicant for licence to cultivate, process or sell … Continue reading

Cannabis and corporate governance: time for grow ops to grow up?

By Katherine MacPhail (Calgary) on April 18, 2019 Posted in Cannabis, Governance and directors' liability

Since the legalization of recreational cannabis on October 17, 2018, the Canadian cannabis industry has experienced a significant boom. In its 2018 Cannabis Report, Deloitte predicted that legal sales of marijuana are expected to generate up to $4.34 billion in 2019. Moreover, and as previously discussed, Health Canada has introduced draft regulations governing the production … Continue reading

A budding investment – food and beverage investment opportunities and strategic partnerships in the growing cannabis industry

By Troy Ungerman (Toronto) on January 22, 2019 Posted in Cannabis, M&A

In December of 2018, Health Canada introduced draft regulations governing the production and sale of additional cannabis products, namely edibles, extracts, and topicals (the Cannabis 2.0 regulations). These regulations are set to take effect no later than October 17, 2019 and will introduce notable opportunities for food and beverage companies to enter into strategic partnerships … Continue reading

Beware the zombie invasion (stock exchange edition)

By Troy Ungerman (Toronto) on October 9, 2018 Posted in Cannabis, Corporate finance, Infrastructure, mining and commodities

On September 18, Deloitte released a new report which outlines a roadmap for the competitive business climate in Canada. Included in the report is a warning that “Canada may have a zombie problem.” Luckily, Deloitte isn’t raising concern about hordes of flesh-eating undead, but rather the relatively large number of “zombie companies” that exist on … Continue reading

Grow on! Examining the forces behind increased M&A activity in Canada

By Troy Ungerman (Toronto) on September 5, 2018 Posted in Cannabis, M&A, Pharmaceuticals and life sciences

The Canadian market has seen a surge in M&A activity since 2017 and it looks as though 2018 will follow suit. According to a PwC Canada 2018 M&A mid-year review, in the first half of 2018 alone, Canada hit CAD$93 billion in M&A activity and outbound deals increased by 8% as compared to the first … Continue reading

Gauging the impact of a Canada-U.S. trade war on cross-border M&A

By Troy Ungerman (Toronto) on July 10, 2018 Posted in Cannabis, M&A

On May 31, 2018 the United States (U.S.) government announced that it would be imposing tariffs on a number of Canadian products, including steel and aluminum at a rate of 25% and 10% respectively. In response, the Canadian government imposed its own surtaxes of approximately C$16.6 billion on imports of steel, aluminum, and other products from … Continue reading

Will Canada soon be a global leader in the cannabis space?

By Troy Ungerman (Toronto) on July 5, 2018 Posted in Antitrust, competition and regulatory, Cannabis, M&A

Recently, the Cannabis Act was granted Royal Assent, resulting in the official passing of the legislation for legalizing cannabis in Canada. The Act is expected to be in force as of October 17, 2018. The Canadian government’s decision to legalize recreational marijuana may significantly impact capital markets and M&A deals. The decision to legalize recreational marijuana … Continue reading

Cannabis: a budding Canadian industry

By Sam Zadeh (Toronto) on January 11, 2018 Posted in Cannabis, M&A

Last week, we covered EY’s recently released report (the Report) surveying the bourgeoning cannabis sector in Canada. The impending legalization of cannabis has weighty implications for the Canadian economy, but may also impact the global markets more broadly. Capital markets, the jobs market, mergers and acquisitions activity and intellectual property, among others, stand to be … Continue reading

CSA, TSX and TSX Venture Exchange provide expectations for reporting issuers with activities in the U.S. cannabis industry

By Troy Ungerman (Toronto) on October 23, 2017 Posted in Cannabis, M&A

Last year, we discussed predictions of increased M&A activity in the cannabis sector, given the federal Liberal Government’s push to legalize cannabis for recreational use. That push picked up steam earlier this year with the introduction of the Cannabis Act (which we summarized here). When implemented, the Cannabis Act will legalize cannabis for recreational use … Continue reading

M&A activity predicted in the marijuana industry

By Jacob Cawker (Toronto) on September 6, 2016 Posted in Cannabis, M&A

The marijuana industry has been high on analysts’ lists ever since Justin Trudeau and the Liberal Party were elected in late 2015. Some analysts predict the legalized pot industry to be a $5 billion market in Canada alone. Thus, it is clear that a new and lucrative market is burgeoning. Analysts are predicting a high level … Continue reading