The Biggest Cannabis Acquisitions of 2021

 

Then, in February, a newly-inaugurated Biden administration announced that it would pursue cannabis decriminalization and cannabis-related criminal record expungements at the federal level.

Congress is also working to pass the SAFE Banking Act, a bipartisan overhaul of financial regulations surrounding cannabis, which would make it much easier for legal cannabis businesses to operate, expand across multiple states and raise capital.

These changes are all chipping away at the red tape that once made big mergers and acquisitions nearly impossible in the US cannabis industry.

And to that end, 2021 has seen quite a number of cannabis acquisitions just in the first six months.

 

The Biggest Cannabis Acquisitions of 2021

U.S. multi-state operators (MSOs) have been a focus of acquisition activity so far this year... 

 

What Does the Future of the Cannabis Industry Look Like?

Cannabis investors have spent the last decade riding a handful of Canadian stocks to huge profits.

I was the first publisher to send a crew to Ontario to investigate Tweed before it became Canopy Growth. And readers of newsletters I published made thousands of percent.

But those large Candian cannabis stocks are unlikely to continue working in the 2020s.

That’s because the growth of Canada’s cannabis market is slowing rapidly. Medical registrations have been plateauing since late 2019, and recreational sales are losing steam, too. 

 

 

The Canadian Imperial Bank of Commerce (NYSE: CM) recently lowered its 2021 cannabis sales forecast from CA$5.5 billion to CA$4.1 billion — a drop of more than 20%.

With this in mind, the future of the cannabis industry is likely to be in emerging cannabis markets like the U.S. and Mexico — where legacy Canadian firms can revitalize themselves by acquiring up-and-coming producers and distributors.

Since late last year, I have been positioning readers for this profit cycle.

The US cannabis market has real fundamental drivers behind it:

 

Late last year in Foundational Profits, we started buying the MSOS fund — the Pure US Cannabis ETF (NYSE: MSOS).

It's up some 30% since we got into it in December. Not a bad return over the past six or seven months.

In Family Office Advantage, which focuses on smaller companies with higher potential upside, we started buying Harvest Health at the same time. 

 

 

You’ll see that Harvest has gone up much more in the same time because it ended up being acquired at a premium.

That's the difference between entry-level newsletters like Foundational Profits...

And more specialized publications like Family Office Advantage, where I drill down into individual companies with higher risk profiles… but in the same trends from the macro analysis that I do based on the sectors that are going up in the market at any given time.

That’s why I’m sector agnostic and will invest in anything.

My expertise has always been identifying the cycles at hand ahead of everyone else… and then harnessing gains within those treds via lower risk funds on a monthly basis with less rotation…

And then via smaller cap individual companies for a higher return.

That’s a little peek inside how I’m looking at the cannabis market now…

And how I’ve been profiting from it for readers of varying risk appetites.

If you ever want to check out the publications… just click the publications tab at the top of Daily Profits Cycle and you'll see them all there.