Aphria (TSE: APH, a leader in medical cannabis in Canada, has purchased the international cannabis company Nuuvera (CVE: NUU) for US$669 million dollars in a stock and cash deal which will create another powerhouse company in the cannabis space.
Nuuvera already has operations setup in England, Germany, Israel, Italy, Spain, and Uruguay which is an enticing selling point to any public company attempting to widen the margins of their footprint on the legal cannabis and hemp industries. This opens the door for key acquisitions of other companies in the space around the world. Aphira also, already has an existing agreement in Australia by purchasing 25% of Althea, an Austrialian medical cannabis producer.
Lorne Abony, CEO of Nuuvera, said, “Italy is forecasted to be a CA$9 billion market, which is larger than Canada’s medical and recreational markets combined. We effectively now have a limitless supply of cannabis that can be brought into Italy to help grow that market.”
This deal comes only a week after Nuuvera acquired one of the only licenses to import medical cannabis into Italy.
Mergers and acquisitions like this one in the industrial hemp and cannabis sector will not slow down. This is clearly another attempt of one of the top public companies to monopolize the market ahead of the planned legalization in Canada in 2018. Consolidation in the sector going to keep happening again and again until the dust settles and there are huge corporations controlling a majority percentage of the market.