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.
You may be interested
MJardin Group Announces CSE Listing and GrowForce AcquisitionEditor - November 16, 2018
MJardin Group, Inc. (CSE: MJAR) announced earlier this week that the company will begin trading the company’s common stock on the Canadian Securities Exchange, under the ticket…
Invictus Strategies Corp. to Acquire GTEC Holdings in Exchange for $100M in StockEditor - November 16, 2018
Invictus Strategies Corp. (TSXV: GENE) (OTCQX: IVITF) has announced this morning that the company has entered into an agreement to acquire GTEC Holdings Ltd. (TSXV: GTEC) (OTC:…
Columbia Care Receives Licenses from Maltese GovernmentEditor - November 15, 2018
Columbia Care LLC. has announced this morning that the company has gain approval from Malta Enterprises, the regulatory economic development agency in the country, to receive licenses…