Alliance One International (NYSE: AOI), a major tobacco company, announced this morning that the company has acquired 75% of Island Garden, a Canadian medical marijuana company, and 80% of Goldleaf Pharm., a nutritional pharmaceutical company. Alliance One International currently cultivates, processes, and manufactures tobacco products out of South Carolina, USA.
Island Garden is family owned business with a licensed medical marijuana operation, with 20,000 sq. ft. of an indoor grow. Though Goldleaf Pharma. does not currently own a cultivation license, the company has applied for one, and currently is constructing another 20,000 sq. ft. indoor grow cultivation facility. Goldleaf can also produce finished goods for the cannabis sector.
Constellation Brands, who owns the popular beer company Corona, paid Canopy Growth Corp (TSX: WEED), one of the largest cannabis producers in Canada, $190M for 10% stake in the company’s operations last October. Larger corporations are starting to see value in what is now expected to become a billion-dollar market in the next few years.