3/21/2019 Sean Williams Motley Fool   Share to Facebook  Share on Google+  

HEXO's Acquisition Shakes Up the Top 11 Marijuana Growers List -- The Motley Fool


HEXO's Acquisition Shakes Up the Top 11 Marijuana Growers List --  The Motley FoolIf you're looking for one of the fastest-growing industries on the planet, you've found it with legal marijuana. It has generated less than $10 billion in annual sales worldwide in 2017, but investment bank Cowen Group is calling for up to $75 billion in global sales by 2030. For those of you keeping score at home, that's a compound annual growth rate of about 17% for 13 years. Because the industry is still relatively nascent, it means there's a lot of market share up for grabs on the recreational and medical side of the equation. This has meant that growers have been particularly aggressive expanding their production capacity organically, through partnerships, or by acquisition. Image source: Getty Images. There's been a shake-up among the largest cannabis growers Last week, just a day prior to releasing its highly anticipated second-quarter operating results, Quebec-based HEXO (NYSEMKT:HEXO) dipped its toes into the water with an acquisition of its own. The announced deal will have HEXO paying 263 million Canadian dollars (about $197 million) to acquire Ontario's Newstrike Brands. The all-stock deal will allow HEXO to further cement domestic supply deals with Canadian provinces, lead to $10 million in annual cost synergies, and, most importantly, add 470,000 square feet of production capacity to the more than 1.3 million square feet of cultivation space the company already has. Ultimately, HEXO's acquisition completely reshapes the look of the 11 marijuana growers currently on pace for more than 100,000 kilograms in peak annual output. Here's the old



Read More

Glass


Facebook
CannaBanana on Facebook